Why AGL Energy, Alumina, BlueScope, & BWX shares are dropping lower

AGL Energy Limited (ASX:AGL) and BWX Ltd (ASX:BWX) shares are two of four dropping notably lower on Tuesday. Here's why…

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It has been a very positive day for the S&P/ASX 200 Index (ASX: XJO). In late morning trade the benchmark index is up almost 1% to 6,059.2 points.

Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:

The AGL Energy Limited (ASX: AGL) share price is down 2% to $17.10. As the energy company is regarded as a safe haven asset, investors may be selling its shares and rotating back into risk-on assets due to improving investor sentiment. In addition to this, earlier this month Macquarie downgraded AGL's shares to an underperform rating with a $15.91 price target.

The Alumina Limited (ASX: AWC) share price is down 4% to $1.71. Investors may be taking profit after some strong gains this month following its quarterly update. One broker that still thinks the Alumina share price can go higher is Morgan Stanley. On Monday it retained its overweight rating and price target of $2.00.

The BlueScope Steel Limited (ASX: BSL) share price is down almost 1.5% to $11.43. This could have been triggered by another note out of Morgan Stanley on Monday. It slapped an underweight rating and $10.00 price target on this steel producer's shares. This follows the recent release of its guidance for FY 2020.

The BWX Ltd (ASX: BWX) share price has fallen 4% to $4.10. This may be a case of profit taking from investors after some very strong gains by the personal care products company's shares this month. Prior to today, BWX's shares were up 22% since the start of the month. This follows the release of its unaudited full year result which revealed strong sales and earnings growth. The company is also currently raising funds to enhance its manufacturing capability and future-proof its supply chain.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX Limited. 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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