Why Kathmandu, New Hope, Recce, & Ramelius shares are dropping lower today

Kathmandu Holdings Ltd (ASX:KMD) and Recce Pharmaceuticals Ltd (ASX:RCE) shares are two of four tumbling lower on Wednesday…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. At the time of writing the benchmark index is up 1.6% to 5,878.5 points.

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

The Kathmandu Holdings Ltd (ASX: KMD) share price has dropped 3% to $1.14. This follows the release of the retailer's full year results this morning. For the 12 months ending 31 July 2020, Kathmandu reported a 48.7% increase in sales to NZ$801.5 million. This was driven largely by a nine-month contribution from the acquired Rip Curl business. Management revealed that COVID-19 impacted sales by an estimated NZ$135 million in FY 2020.

The New Hope Corporation Limited (ASX: NHC) share price has fallen 3% to $1.17. Investors have been selling the coal miner's shares after brokers responded negatively to its full year results. One broker that didn't like what it saw was Macquarie. This morning it retained its underperform rating and cut its price target down to 90 cents. On Tuesday New Hope posted a 17% decline in revenue to $1,084 million and a 69% decline in profit after tax to $120 million.

The Recce Pharmaceuticals Ltd (ASX: RCE) share price has dropped a sizeable 7% to $1.52. This follows the completion of a placement to raise ~$28 million. The pharmaceutical company raised the funds through the placement of 21.5 million shares to institutional, professional, and sophisticated investors at a sizeable discount of $1.30 per share. Proceeds will be used to advance Recce's synthetic anti-infective pipeline.

The Ramelius Resources Limited (ASX: RMS) share price is down 6.5% to $2.18. Investors have been selling Ramelius and other gold miners on Wednesday after improving investor sentiment weighed on demand for safe haven assets. The spot gold price is currently down 0.2% to US$1,903.60 an ounce according to CNBC.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

More on Share Fallers

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why 29Metals, Brainchip, Platinum, and Premier Investments shares are falling today

These ASX shares are having a tough time on hump day.

Read more »

Man with his head in his head because of falling share price.
Share Fallers

Why 29Metals, Atlas Arteria, IDP Education, and Mineral Resources shares are falling

These ASX shares are having a tough time on Tuesday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ALS, EOS, NRW, and Patriot Battery Metals are dropping today

These ASX shares are starting the week in the red.

Read more »

A man looking at his laptop and thinking.
Technology Shares

Why are these ASX tech shares getting smashed today?

Owners of these two stocks are missing out today.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why AGL, Brickworks, IGO, and New Hope shares are dropping today

These ASX shares are having a poor session. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Amcor, Arafura, Brainchip, and South32 shares are tumbling today

These ASX shares are having a tough time on hump day. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Aussie Broadband, Liontown, Metals Acquisition, and Seek shares are falling

These ASX shares are having a poor session. But why?

Read more »