Why 5G Networks, AMP, Clover, & Reliance shares are dropping lower today

AMP Limited (ASX:AMP) and Clover Corporation Limited (ASX:CLV) shares are two of four dropping notably lower on Friday. Here's why…

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and is edging lower. At the time of writing the benchmark index is down 0.1% to 5,876.7 points.

Four shares that have fallen more than most today are listed below. Here's why they are dropping lower:

The 5G Networks Ltd (ASX: 5GN) share price is down 5% to $1.69 after returning from its trading halt. This morning the company confirmed that has entered into a Bid Implementation Deed with Webcentral Group Ltd (ASX: WCG) to acquire it via a recommended off market takeover bid. 5G Networks has offered 16 cents per share for the domains and hosting provider.

The AMP Limited (ASX: AMP) share price has sunk 7.5% lower to $1.41. This decline is almost entirely attributable to the financial services company's shares trading ex-dividend this morning for its 10 cents per share fully franked interim dividend. This will be paid to eligible shareholders in just over two weeks on 1 October.

The Clover Corporation Limited (ASX: CLV) share price has crashed 11.5% to $2.17 following the release of its full year results. For the 12 months ended 31 July 2020, the specialist ingredients producer delivered sales revenue of $88.3 million and net profit after tax of $12.5 million. This was a 15.1% and 23.6% increase, respectively, over the prior corresponding period. Management's commentary for FY 2021 appears to have concerned investors. It warned of high levels of uncertainty because of the pandemic.

The Reliance Worldwide Corporation Ltd (ASX: RWC) share price is down 3% to $3.86. The catalyst for this decline appears to have been a broker note out of UBS this morning. According to the note, the broker has downgraded the plumbing parts company's shares to a neutral rating with a $3.85 price target. UBS made the move on valuation grounds after a strong gain in recent weeks.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Clover Limited and Reliance Worldwide Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends 5G NETWORK FPO. The Motley Fool Australia has recommended Reliance Worldwide 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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