In afternoon trade the S&P/ASX 200 index is on course to record another solid gain. At the time of writing the benchmark index is up 0.45% to 6,806.2 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they have sunk lower:
The Fortescue Metals Group Limited (ASX: FMG) share price has dropped over 5% to $8.26 following the release of the iron ore producer's fourth quarter update. Although that update appeared to meet the market's expectations, investors may have been hoping Fortescue would smash them. In addition to this, a 2.5% decline in the spot iron ore price overnight could be weighing on its shares.
The GrainCorp Ltd (ASX: GNC) share price has dropped 2% to $8.63 after the ACCC extended its review of the proposed sale of Australian Bulk Liquid Terminals. The competition watchdog has concerns that the $350 million sale would remove a significant competitor in an already concentrated industry. GrainCorp advised that it will work closely with the ACCC to provide the information it requires as it works through its consideration of the transaction.
The Iluka Resources Limited (ASX: ILU) share price has fallen heavily for the second day in a row and is down 6.5% to $9.33. The mineral sands producer's shares have come under pressure this week after its quarterly update failed to live up to the market's expectations. According to a note out of UBS, its analysts were disappointed with the quarter and downgraded its shares to a neutral rating with a reduced price target of $10.60.
The Rio Tinto Limited (ASX: RIO) share price has fallen 4% to $96.41. Today's sizeable decline appears to be a combination of a fall in iron ore prices and a broker downgrade. In respect to the latter, analysts at Credit Suisse downgraded the mining giant's shares to an underperform rating with a $92.00 price target. This was due largely to concerns that iron ore prices may have peaked.
