The S&P/ASX 200 Index (ASX: XJO) is having a day to remember on Thursday. In afternoon trade, the benchmark index is up 4.5% to 7,710.3 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:
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Austin Engineering Ltd (ASX: ANG)
The Austin Engineering share price is down 3.5% to 41.5 cents. This is despite there being no news out of the mining services provider. However, as it is considered a value stock on a low price to earnings ratio, which have fared better than most during recent volatility, it could have been left behind in today's rally.
Magnetic Resources NL (ASX: MAU)
The Magnetic Resources share price is down 4% to $1.34. This may have been driven by profit taking after its shares raced higher on Wednesday. Investors were buying the company's shares after it revealed strong drilling results. Management advised that a new composite comprising diamond drill core from the deeper section of the deposit demonstrated a 97.5% recovery with the optimised flotation circuit. Management believe that this is a spectacular increase over the potential recovery achieved with conventional gravity/leach of 88%.
Meridian Energy Ltd (ASX: MEZ)
The Meridian Energy share price is down 1% to $5.32. This appears to have been driven by investors rotating out of safe haven assets to take advantage of the market rebound. As a utility stock, Meridian Energy is a popular option for investors when the share market goes through a heightened levels of volatility.
Minerals 260 Ltd (ASX: MI6)
The Minerals 260 share price is down 15% to 11 cents. This follows news that the gold developer has successfully completed a $220 million capital raising to underpin the 100% acquisition and advancement of the Bullabulling Gold Project in Western Australia. Management notes that the capital raise was completed following strong support from new international and domestic institutions, in addition to support from existing shareholders. Each Minerals 260 director and all key management participated in the raising, with total contributions of $12.7 million, including $12 million invested by the company's chairman, Tim Goyder, and his nominees. Goyder said: "The successful completion of this capital raising is a significant achievement for the Company. The raising was strongly supported by both global and domestic institutions and our existing shareholders. Minerals 260 is now in a position to complete the acquisition of the Bullabulling Gold Project, re-commence trading on the ASX and begin our aggressive drilling campaign."
