The S&P/ASX 300 (Index: ^AXKO) (ASX: XKO) has closed up 1.1% at 5,230.20 points, as energy and resources shares took flight on commodity price gains overnight.
Reflecting those gains, the S&P/ASX 200 Energy (Index: ^AXEJ) (ASX: XEJ) sector soared 5.7%, while the S&P/ASX Resources (Index: ^AXJR) (ASX: XJR) rose 3.6%.
Unfortunately for shareholders in these 4 companies, they weren't as lucky and had to watch their share prices slide…
Galaxy Resources Limited (ASX: GXY) share price dropped 7.2% to $0.45, despite no news from the company. The lithium miner has seen its share price soar 1,400% in the past year, as investors bank on surging demand for lithium (used in renewable energy, particularly batteries) and Galaxy profiting from that demand. However, until Galaxy produces an actual profit from its lithium operations, the share price is in the hands of the speculators and can dip and soar on a daily basis – like today.
Viralytics Ltd. (ASX: VLA) share price fell 5.6% to $0.76. The biotech company recently reported that its investigational drug candidate CAVATAK had seen some promising results from an ongoing clinical trial. The news buoyed investors, with the share price soaring in the past few days, although it appears some traders were taking their profits today. Viralytics' share price is still up nearly 20% for the week.
Netcomm Wireless Ltd (ASX: NTC) share price slipped 5.2% to $3.08. The wireless broadband provider has just completed an institutional capital raising – issuing $50 million worth of shares at an issue price of $2.95. A share purchase plan (SPP) for up to $10 million is now underway for retail investors at the same price, so some investors may be selling their shares at a higher price on the market and hoping they get replaced under the SPP with cheaper shares. The share price could fall close to the new share's issue price over the next few weeks.
Lovisa Holdings Ltd (ASX: LOV) saw its share price lose 3.8% to $2.05. The jewellery and fashion accessories retailer has seen its share price sink 11.3% over the past week, after a number of management changes were announced on April 13. Those changes included a new chairman Michael Kay, who was the CEO of listed salary packaging company McMillan Shakespeare Limited (ASX: MMS) for six years, and a new chief financial officer Graeme Fallet. Investors don't like changes in executive management all that much – often suspecting that there's more to the story than company's report (whether or not there is).
NOTE: The original article stated that Galaxy Resources was a graphite producer – when clearly that was incorrect and the company is a lithium producer.
