Why Mesoblast, Northern Star, SEEK, & WiseTech Global shares are sinking lower

SEEK Limited (ASX:SEK) and WiseTech Global Ltd (ASX:WTC) shares are two of four sinking notably lower on Wednesday. Here's why…

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After a positive start to the day, the S&P/ASX 200 Index (ASX: XJO) has given back its gains and is dropping lower. In late morning trade the benchmark index is down 0.3% to 6,118.2 points.

Four shares that are falling more than most today are listed below. Here's why they are sinking lower:

The Mesoblast limited (ASX: MSB) share price has continued its slide and is down 8.5% to $3.07. Investors have been selling the biotechnology company's shares amid doubts over the likelihood that the U.S. FDA will approve its remestemcel-L product candidate as a treatment for paediatric steroid-resistance acute graft versus host disease. Mesoblast is due to meet with the Oncologic Drugs Advisory Committee (ODAC) on Thursday evening. The ODAC is a key player in the regulation of cancer drugs and plays a big role in whether a drug gets approval or not.

The Northern Star Resources Ltd (ASX: NST) share price has fallen 6% to $14.38 after the gold price crashed lower overnight. Increasing investor risk appetite because of improving economic data and a potential coronavirus vaccine led to the precious metal losing almost 6% of its value during overnight trade. It isn't just Northern Star sinking lower. The S&P/ASX All Ordinaries Gold index is down 4.8% at the time of writing.

The SEEK Limited (ASX: SEK) share price has sunk over 10% to $19.21 following the release of its full year results. The job listings giant reported a 51% decline in net profit after tax to $90.3 million for FY 2020. While this was largely expected by the market, its outlook for FY 2021 appears to have underwhelmed. Due to the pandemic, SEEK has suggested that its EBITDA and net profit after tax could drop 20.5% and 78%, respectively.

The WiseTech Global Ltd (ASX: WTC) share price has fallen 6% to $19.40. This appears to have been driven by a broker note out of Citi this morning. Its analysts have downgraded the logistics solutions company's shares to a sell rating with a reduced price target of $18.40. It made the move after revising its earnings estimates lower due largely to the tough macroeconomic environment.

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of WiseTech Global. The Motley Fool Australia has recommended SEEK 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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