The S&P/ASX 200 index has bounced back from yesterday's sell off and is on course to record a solid gain. In afternoon trade the benchmark index is 0.7% higher at 6,326.1 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they have dropped lower:
The Ainsworth Game Technology Limited (ASX: AGI) share price is down 4% to 80.5 cents after it released a trading update which revealed that it has been struggling with intense competitive market pressures and delays. Instead of "an improved profit performance in H2FY19 compared to the H1FY19", management now expects its second half profits to be notably lower than in the first half.
The GrainCorp Ltd (ASX: GNC) share price has tumbled 7% to $8.14 after Long-Term Asset Partners (LTAP) announced that it would be unable to proceed with its non-binding, indicative proposal to acquire the company for a cash consideration of $10.42 per share. According to LTAP chairman, Tony Shepherd, its due diligence didn't support its operational assumptions. It looks as though GrainCorp will now focus on its demerger plans.
The HUB24 Ltd (ASX: HUB) share price has dropped 3% to $14.59. Today's decline is likely to be attributable to a broker note out of Citi this morning. According to the note, the broker has downgraded the investment platform company's shares to a sell rating and trimmed the price target on them to $13.35. The broker made the move largely on valuation grounds after a strong share price rally.
The Mayne Pharma Group Ltd (ASX: MYX) share price has fallen almost 3% to 68.5 cents. This also appears to have been caused by the release of a broker note this morning. According to a note out of UBS, its analysts have held firm with their neutral rating but cut the price target on this pharmaceutical company's shares to 73 cents. The broker reduced its price target to reflect lower gross margin estimates for its key generics division.
