The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is on course to end its run of declines and in afternoon trade the benchmark index is up 0.3% to 5,638 points.
Unfortunately not all shares are climbing higher today. Four shares in particular have sunk significantly lower. Here's why:
Ansell Limited (ASX: ANN) shares are down 5% to $22.59 after the protection solutions company announced the acquisition of UK-based Nitritex Limited for £57 million. Nitritex is a manufacturer of premium cleanroom and healthcare life sciences consumables. Investors may be disappointed that the acquisition is only expected to be marginally accretive to earnings in FY 2017.
GBST Holdings Limited (ASX: GBT) shares have plunged 20% to $3.09 after the financial services software provider released a market update. Due to an anticipated reduction in services revenue post-Brexit, GBST expects EBITDA in the region of $12 million for the full year. This is a sharp drop from the EBITDA of $17.2 million it delivered in FY 2016. I think GBST is a great company, but it's probably best avoided at this stage even after today's decline.
OFX Group Ltd (ASX: OFX) shares have plummeted 20% to $1.34 following another shocking trading update from the money transfer company. According to the release the company has struggled with the post-Brexit fall in the British pound and lower-than-expected revenues in Australia. As a result it expects full year statutory net profit of at least $19 million, compared to $21.8 million last year. Chief executive Richard Kimber will leave the company with immediate effect.
Sundance Energy Australia Ltd (ASX: SEA) shares have fallen 19% to 16.2 cents after the oil and gas exploration and production company provided its fourth quarter update and 2017 guidance. The market appears to be disappointed with the company's production guidance in 2017. Management expects this to be in a range of 7,700 to 8,500 barrels of oil equivalent per day. At the low end of the range it will be a step backwards from the 7,900 barrels it produced daily in the December quarter.
