Why DigiCo, Emerald Resources, Harvey Norman, and Mesoblast shares are dropping today

These shares are starting the week in the red. But why?

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Key points

  • DigiCo and Mesoblast shares fall possibly due to profit taking after recent gains, despite positive developments.
  • Emerald Resources drops after first-quarter production miss at Okvau Gold Mine, but FY 2026 guidance remains unchanged.
  • Harvey Norman falls as shares go ex-dividend, affecting the stock following its declared final dividend payment.

The S&P/ASX 200 Index (ASX: XJO) is having a poor start to the week. In afternoon trade, the benchmark index is down 0.1% to 8,977.5 points.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

DigiCo Infrastructure REIT (ASX: DGT)

The DigiCo Infrastructure share price is down almost 6% to $2.88. This may be driven by profit taking from some investors after the data centre operator's shares raced higher last Friday. This was driven by news that the company has secured new customer wins from a combination of Hyperscale, Neocloud, Enterprise and Government customers. It notes that these new contracts would increase Digico's Australian contracted IT capacity to 41MW by June 2026. This is more than 57% higher than its previous target of 26MW. DigiCo's CEO, Chris Maher, said: "As we noted at our FY25 results, the Australian pipeline, customer demand and scale of deployments has continued to track ahead of expectations at the time of the IPO in December 2024. DigiCo is uniquely positioned to meet surging demand for high-density AI infrastructure – where performance, latency and connectivity are critical."

Emerald Resources NL (ASX: EMR)

The Emerald Resources share price is down 3% to $4.96. This follows news that production at the Okvau Gold Mine is expected to be approximately 22,000 ounces for the first quarter with an all-in sustaining cost (AISC) of ~US$1,150 per ounce. This is short of its guidance for the period and has been driven by heavy rainfall during September, which restricted access to the high grade ore scheduled to be mined and milled at month end. However, management has reaffirmed its guidance of 105,000 ounces to 120,000 ounces with an AISC of US$950 per ounce for FY 2026.

Harvey Norman Holdings Ltd (ASX: HVN)

The Harvey Norman share price is down 2.5% to $7.50. This has been driven by the retail giant's shares going ex-dividend this morning for its upcoming final dividend of FY 2025. In August, Harvey Norman declared a fully franked final dividend of 14.5 cents per share. This will be paid to eligible shareholders next month on 3 November.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is down almost 5% to $2.63. This may also have been driven by profit taking from some investors after strong gains in recent sessions. For example, the biotechnology company's shares remain up 10% since this time last week despite today's weakness. Last week, Mesoblast revealed that a specific Healthcare Common Procedure Coding System J-Code assigned to its Ryoncil product by the United States Medicare & Medicaid Services (CMS) became active for billing and reimbursement on 1 October. Management believes that formal recognition by CMS is a significant milestone for Ryoncil as the product becomes easier to bill and pay for.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. 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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