In afternoon trade the S&P/ASX 200 index has followed the lead of U.S. markets and is on course to record a solid gain. At the time of writing the benchmark index is up 1% to 6,720.3 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they have sunk lower:
The Afterpay Touch Group Ltd (ASX: APT) share price has tumbled a disappointing 7.5% to $33.83. Investors have been heading to the exits after the payments company was the subject of a bearish broker note. Analysts at UBS have initiated coverage on the company's shares with a sell rating and $17.25 price target. It believes excessive growth is already priced in and has concerns over regulatory risks.
The Clinuvel Pharmaceuticals Limited (ASX: CUV) share price is down 2.5% to $33.60. With no news out of the biopharmaceutical company today, I suspect that this decline could be down to profit taking. After all, its shares rocketed significantly higher last week after the FDA approved its SCENESSE product in the United States.
The OceanaGold Corp (ASX: OGC) share price has sunk 10% lower to $3.44. Investors have been hitting the sell button today after the gold miner downgraded its full year production guidance. Due to a blockade of its operations in the Philippines, it now expects to produce between 460,000 and 480,000 ounces of gold.
The Zip Co Ltd (ASX: Z1P) share price has fallen 4% to $5.21. As with Afterpay, investors have been selling this buy now pay later provider's shares due to a bearish broker note. UBS has also initiated coverage on Zip Co with a sell rating and $4.80 price target. The broker has concerns over how credit-worthy the users of buy now pay later services are. As a result, it suspects that regulators may soon target the industry.
