In afternoon trade the S&P/ASX 200 Index (ASX: XJO) looks set to end the week with a decline. At the time of writing, the benchmark index is down 0.3% to 6,663.3 points.
Four shares that are falling more than most today are listed below. Here’s why they are dropping lower:
CSL Limited (ASX: CSL)
The CSL share price is down 3% to $292.02. Investors have been selling the biotech giant’s shares after it announced the surprise termination of its COVID-19 vaccine trial. Although the phase 1 trial showed that the vaccine caused a robust response towards the virus, it was also causing a false positive on a range of HIV assays. This was due to its molecular clamp, which interferes with certain HIV diagnostic assays. Unfortunately, this means it would have required significant changes to well-established HIV testing procedures to accommodate the rollout of the vaccine.
Lovisa Holdings Ltd (ASX: LOV)
The Lovisa share price has fallen 6.5% to $10.75 despite there being no news out of the fashion jewellery company. However, prior to today, the Lovisa share price was up 67% over the last six months. This may have led to some investors taking a bit of profit off the table today.
Lynas Rare Earths Ltd (ASX: LYC)
The Lynas share price has dropped almost 3% to $3.90. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has downgraded the rare earths producer’s shares to a neutral rating with a $4.30 price target. UBS made the move largely on valuation grounds after a very strong gain over the last few months. It believes its shares are fully valued now.
Syrah Resources Ltd (ASX: SYR)
The Syrah share price has sunk 9.5% lower to 92 cents after returning from a trading halt. The graphite producer’s shares have come under pressure after completing a fully underwritten placement. Syrah has raised approximately $56 million (US$42 million) through a placement to professional and sophisticated investors at a 11.5% discount of 90 cents. These funds will be used partly to progress its natural graphite Active Anode Material (AAM) facility in the United States towards a final investment decision for the construction of a 10ktpa AAM plant.