It has been another very positive day of trade for the S&P/ASX 200 Index (ASX: XJO) on Tuesday. In late morning trade, positive vaccine news has helped drive the benchmark index 1.35% higher to 6,377.9 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are crashing lower:
Coles Group Ltd (ASX: COL)
The Coles share price is down almost 5% to $17.81. Investors have been selling the supermarket giant’s shares today amid news that there could be an effective COVID-19 vaccine released before the end of the year. While this is good news for the global economy, life getting back to normal would likely lead to the softening of supermarket sales.
Incitec Pivot Ltd (ASX: IPL)
The Incitec Pivot share price has fallen 4% to $2.07 following the release of its full year results. In FY 2020, the agricultural chemicals company posted a 19% decline in net profit after tax to $123.4 million. However, this was driven by individually material items (IMIs) of $65 million. These relate to the write down of obsolete technology and the implementation costs for its Response Plan. Excluding these IMIs, Incitec Pivot’s profit would have been up 23% year on year.
Kogan.com Ltd (ASX: KGN)
The Kogan share price has crashed 10% lower to $21.48. Investors have been rotating out of COVID-winners and into shares which have underperformed during the pandemic. This has led to significant weakness in the tech sector and particularly with ecommerce companies.
Northern Star Resources Ltd (ASX: NST)
The Northern Star share price has sunk 12% lower to $14.83. This follows a sharp pullback in the gold price overnight due to the COVID-19 vaccine news. It isn’t just Northern Star that is under pressure today. The S&P/ASX All Ordinaries Gold index is down a massive 8.5% at the time of writing. Safe haven assets have suddenly lost their allure with investors as risk appetite increases.