In late morning trade the S&P/ASX 200 Index (ASX: XJO has followed the lead of U.S. markets and is charging higher. At the time of writing the benchmark index is up 0.5% to 6,096.2 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:
The Bubs Australia Ltd (ASX: BUB) share price has dropped 5.5% to 86.5 cents. Investors have been selling the infant formula company’s shares after it successfully completed its institutional placement. Bubs has raised $28.3 million (before costs) at a 12.5% discount of $0.80 per share. These funds are being used largely to support its growth plans in the China market. This includes buying an interest in a manufacturing facility in the country.
The Perseus Mining Limited (ASX: PRU) share price has tumbled 4.5% to $1.39. The catalyst for this decline appears to have been a pullback in the spot gold price overnight. The price of the precious metal dropped lower amid a strengthening U.S. dollar and optimism over the global economic recovery. At the time of writing, the S&P/ASX All Ordinaries Gold index is down 1.1%.
The WiseTech Global Ltd (ASX: WTC) share price has fallen 2% to $28.79. Investors have been selling the logistics solutions company’s shares after it revealed that its CEO and Founder, Richard White, was selling down his stake. Mr White has offloaded $10 million worth of shares in the last few days and plans to keep selling through to 31 December. He remains the company’s largest shareholders by some distance.
The Xero Limited (ASX: XRO) share price has dropped 3.5% lower to $99.25. This also appears to have been driven by insider selling. Although the business and accounting software company has yet to confirm it, there are reports that its founder, Rod Drury, has offloaded almost $200 million worth of shares. According to the AFR, the shares were believed to have been offered at a 3.9% discount of $99.00 per share.