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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. At the time of writing the benchmark index is up 1.6% to 5,878.5 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:
The Kathmandu Holdings Ltd (ASX: KMD) share price has dropped 3% to $1.14. This follows the release of the retailer's full year results this morning. For the 12 months ending 31 July 2020, Kathmandu reported a 48.7% increase in sales to NZ$801.5 million. This was driven largely by a nine-month contribution from the acquired Rip Curl business. Management revealed that COVID-19 impacted sales by an estimated NZ$135 million in FY 2020.
The New Hope Corporation Limited (ASX: NHC) share price has fallen 3% to $1.17. Investors have been selling the coal miner's shares after brokers responded negatively to its full year results. One broker that didn't like what it saw was Macquarie. This morning it retained its underperform rating and cut its price target down to 90 cents. On Tuesday New Hope posted a 17% decline in revenue to $1,084 million and a 69% decline in profit after tax to $120 million.
The Recce Pharmaceuticals Ltd (ASX: RCE) share price has dropped a sizeable 7% to $1.52. This follows the completion of a placement to raise ~$28 million. The pharmaceutical company raised the funds through the placement of 21.5 million shares to institutional, professional, and sophisticated investors at a sizeable discount of $1.30 per share. Proceeds will be used to advance Recce's synthetic anti-infective pipeline.
The Ramelius Resources Limited (ASX: RMS) share price is down 6.5% to $2.18. Investors have been selling Ramelius and other gold miners on Wednesday after improving investor sentiment weighed on demand for safe haven assets. The spot gold price is currently down 0.2% to US$1,903.60 an ounce according to CNBC.
