In afternoon trade the S&P/ASX 200 Index (ASX: XJO) has returned to form and is charging notably higher. At the time of writing the benchmark index is up a sizeable 1.6% to 5,908.5 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:
The Electro Optic Systems Hldg Ltd (ASX: EOS) share price is down 1.5% to $5.38. On Wednesday the defence and aerospace company announced the conclusion of contract negotiations with the government. These negotiations have resulted in the government purchasing 251 Remote Weapon Stations and related materiel for a total of $94 million. Some investors may have been expecting better terms.
The Jumbo Interactive Ltd (ASX: JIN) share price has tumbled 4.5% lower to $11.94. Investors have been selling the lottery ticket seller’s shares despite it being the subject of two positive broker notes. One of those was out of Citi. This morning its analysts reiterated their overweight rating and $14.30 price target on Jumbo’s shares. This follows news that the company has signed a deal with Lotterywest.
The Nearmap Ltd (ASX: NEA) share price is down 1% to $2.34. This is despite there being no news out of the aerial imagery technology and location data company on Thursday. However, it is worth noting that a number of tech shares are underperforming the rest of the market today.
The OceanaGold Corp (ASX: OGC) share price has crashed 9% lower to $2.15. The catalyst for this was the announcement of a C$150 million equity raising this morning. OceanaGold has entered into an agreement with a syndicate of underwriters who have agreed to purchase 73 million shares at a price of C$2.06 per new share. OceanaGold intends to use the net proceeds to fund organic growth projects. This includes the Haile underground development.
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Returns as of 6th October 2020
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 Electro Optic Systems Holdings Limited and Nearmap Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited and Nearmap Ltd. 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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