In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has managed to push ever so slightly higher and is up at 6,199 points at the time of writing.
Four shares that have acted as a drag on the market today are listed below. Here's why they are dropping lower:
The Alderan Resources Ltd (ASX: AL8) share price has returned from its trading halt and plunged 11% lower to 79 cents. Alderan's shares had been placed in a trading halt whilst it prepared a reply to a price and volume query by the ASX. The company suggested that the recent share price increase is the result of speculation on the outcome of drilling that is now expected to be complete in August.
The Metcash Limited (ASX: MTS) share price has dropped 4.5% to $2.67. Today's decline is likely to be attributable to a broker note out of Deutsche Bank. According to the note, the broker has downgraded Metcash's shares to a sell with a reduced price target of $2.50. Deutsche appears doubtful that the company's cost reductions will be enough to stop an earnings decline. I agree with the broker and think investors should stay away from Metcash.
The oOh!Media Ltd (ASX: OML) share price has tumbled by almost 11% to $4.77 after completing the institutional component of its fully underwritten entitlement offer to fund the acquisition of the Adshel business. It raised approximately $290 million at $4.60, which is a reasonably steep discount to its last close price.
The TPG Telecom Ltd (ASX: TPM) share price has dropped 2.5% to $5.07 after Goldman Sachs reiterated its sell rating and $4.70 price target on its shares. The broker believes that the challenges facing the company have intensified since it first downgraded its shares in April and appears concerned by the competitive pressures across each of the markets and its stretched balance sheet ahead of spectrum bidding.
