In late morning trade the S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and is pushing higher. At the time of writing the benchmark index is up 0.25% to 5,966.3 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:
The A2 Milk Company Ltd (ASX: A2M) share price is down a further 3.5% to $14.66. Investors have been selling the infant formula and fresh milk company’s shares following its disappointing guidance update on Monday. Investors may also be unhappy with management after they sold millions of dollars worth of shares last month.
The Bank of Queensland Limited (ASX: BOQ) share price has sunk 4% to $6.10. The catalyst for this decline was the release of an update which revealed an increase in COVID-19 provisions and news of employee underpayments. The regional bank’s COVID‐19 related collective provision expense is now $133 million (pre‐tax), up from $71 million previously. A further $11 million (pre‐tax) expense will be recognised for underpayments.
The Mesoblast limited (ASX: MSB) share price is down almost 2% to $5.40. This decline appears to be due to profit taking after the biotechnology company’s shares stormed to a record high on Monday. Investors have been buying shares ahead of its priority review by the United States Food and Drug Administration (FDA) on Wednesday. Mesoblast is hoping to gain FDA approval for remestemcel-L as a treatment for paediatric steroid-resistance acute graft versus host disease.
The Northern Star Resources Ltd (ASX: NST) share price has dropped 2% to $13.83. A number of gold miners have come under pressure today despite a small rise in the gold price. Improving investor sentiment may be weighing on the safe haven asset. At the time of writing, the S&P/ASX All Ordinaries Gold index is down 0.4%.