The S&P/ASX 200 Index (ASX: XJO) has started the week strongly and is storming higher again. In afternoon trade, the benchmark index is up a sizeable 1.1% to 7,391.9 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are sinking:
Austal Limited (ASX: ASB)
The Austal share price has tumbled 8.5% to $2.13 after downgrading its earnings guidance. This morning the shipbuilder revealed that it expects its earnings before interest and tax (EBIT) to be in the range of $112 million to $118 million in FY 2021. This is down from its previous EBIT guidance of $125 million. Delays due to COVID-19 are behind Austral’s underperformance.
Cettire Ltd (ASX: CTT)
The Cettire share price has crashed 21% to $1.98. Investors have been selling the online luxury goods retailer’s shares amid concerns over fund managers selling shares and its long term prospects due to sales tactics and supply chains. The Cettire share price has been paused from trading without explanation.
Leigh Creek Energy Ltd (ASX: LCK)
The Leigh Creek Energy share price has sunk 13% to 19.5 cents. This follows the completion of an $18 million capital raising undertaken at a deep discount of 18 cents per new share. The proceeds will be used to progress stage 1 of the Leigh Creek Energy Project to production of commercial syngas and power generation. Management advised that the placement was supported by several Australian and global institutions.
McPherson’s Ltd (ASX: MCP)
The McPherson’s share price has fallen 17% to $1.20. This morning the beauty products company revealed that Arrotex Australia has withdrawn its Indicative Proposal. In April, Arrotex Australia tabled a $1.60 per share takeover offer. However, following a four-week period of due diligence, the parties have agreed to cease due diligence and Arrotex has withdrawn its proposal.