In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a high. At the time of writing the benchmark index is up 0.9% to 6,088.8 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they are tumbling lower:
The Adbri Ltd (ASX: ABC) share price has crashed 25% lower to $2.38. Investors have been selling the building materials company's shares after Alcoa of Australia decided not to renew its current lime supply contract when it expires at the end of June 2021. Although this contract currently constitutes approximately $70 million or 4.6% of annual revenue, investors appear concerned that others may follow. Alcoa is switching to cheaper imported products and will bring to an end a supply relationship that has been ongoing for almost 50 years.
The BlueScope Steel Limited (ASX: BSL) share price is down 3.5% to $11.02. The catalyst for this appears to be a broker note out of Morgan Stanley this morning. Its analysts have downgraded the steel producer's shares to an underweight rating and cut the price target on them to $10.00. It made the move after reducing its earnings estimates for the near term.
The Netwealth Group Ltd (ASX: NWL) share price has fallen 2.5% to $9.24. This decline also appears to be due to a broker note. Credit Suisse has downgraded the investment platform provider's shares to an underperform rating with an $8.30 price target. It expects Netwealth's revenue margin to soften and its earnings growth to slow. As a result, it feels the market is currently expecting too much from it at present.
The Rio Tinto Limited (ASX: RIO) share price is down 0.5% to $97.37. This follows an update on its Oyu Tolgoi mine in Mongolia. An updated feasibility study has incorporated a new mine design for Panel 0 of the Hugo Dummett North underground mine. However, the new study includes an increase of US$1.3 billion to US$1.8 billion from the original US$5.3 billion development capital.
