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Why CIMIC, oOh!Media, ResMed, & Resolute shares are dropping lower

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a very positive note. At the time of writing, the benchmark index is up a sizeable 0.7% to 6,047 points.

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

The CIMIC Group Ltd (ASX: CIM) share price is down 2.5% to $22.09 despite announcing several new contracts for its UGL business. According to the release, UGL has secured several construction and maintenance contracts in the mining sector worth over $200 million in total. This includes contracts with mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

The oOh!Media Ltd (ASX: OML) share price has fallen 5% to 77.5 cents. This appears to have been driven by a report in the AFR. According to the report, oOh!Media has been offering discounts of up to 95% for its billboards. This follows a collapse in demand for advertising space during the pandemic. The company is due to release its half year results on 24 August.

The ResMed Inc. (ASX: RMD) share price has fallen a further 2.5% to $24.41. The sleep treatment-focused medical device company’s shares have come under pressure since the release of its full year results last week. Although ResMed delivered a strong result, this was underpinned by strong pandemic-related ventilator sales. This offset weakness in mask sales caused by the coronavirus.

The Resolute Mining Limited (ASX: RSG) share price has fallen 3% to $1.32. The catalyst for this decline appears to have been a pullback in the gold price on Friday night. This was driven by the strengthening of the U.S. dollar. Though, it is worth noting that in Asian trade the gold price is rebounding.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended oOh!Media Ltd and ResMed Inc. 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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