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Why Evolution, IDP Education, Oil Search, & Webjet shares are dropping lower

The S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and is tumbling lower in morning trade. At the time of writing the benchmark index is down 1% to 5,908.1 points.

Four shares that have fallen more than most today are listed below. Here’s why they are dropping lower:

The Evolution Mining Ltd (ASX: EVN) share price is down 3% to $5.44. Investors have been selling Evolution after even the gold price came under pressure overnight during the market selloff. It isn’t just Evolution tumbling lower. The S&P/ASX All Ordinaries Gold index is down 2% at the time of writing.

The IDP Education Ltd (ASX: IEL) share price is down 4% to $15.60. This follows an announcement which reveals that The Board of Education Australia has sold 14,062,999 shares via an underwritten block trade of shares to institutional investors. Education Australia received $219 million for the shares, which equates to $15.55 per share. Following the sale, Education Australia retains 111,334,485 IDP shares, which represents 40% of its issued share capital.

The Oil Search Limited (ASX: OSH) share price is down 3.5% to $3.18. Investors have been selling Oil Search and other energy shares on Thursday after a pullback in oil prices overnight. Concerns over record U.S. crude inventories and a spike in COVID-19 cases led to WTI crude oil falling almost 6% during overnight trade.

The Webjet Limited (ASX: WEB) share price has fallen 5.5% to $3.50. A number of travel companies have come under pressure today amid concerns over the state of the domestic travel market following a spike in COVID-19 cases in Victoria. In addition, this morning Qantas Airways Limited (ASX: QAN) announced a $1.9 billion capital raising. Investors may be interpreting this move as a sign that the domestic travel market recovery might not be as smooth as first hoped.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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