The S&P/ASX 200 index is on course for another decline. In afternoon trade the benchmark index is down 0.5% to 6,717.4 points.
Four shares that have fallen more than most today are listed below. Here's why they are sinking lower:
The ARQ Group Ltd (ASX: ARQ) share price is down 15% to 38.7 cents. Investors have been selling the IT company's shares following an update on its strategic review and revised guidance for FY 2019. Due to the continued underperformance of its Enterprise division, group underlying EBITDA is expected to be in the range of $13.8 million to $15.8 million. This compares to previous guidance of $16.8 million to $19.3 million.
The Avita Medical Ltd (ASX: AVH) share price has tumbled 8% to 63.5 cents after the medical technology company returned from a trading halt. Avita announced the successful completion of an institutional placement raising $120 million at 59 cents per share. This will be used to fund the pipeline development of new indications. This includes optimising support for clinical trials and development projects, as well as its continued U.S. commercial growth strategy.
The Incitec Pivot Ltd (ASX: IPL) share price has fallen 2% to $3.42. The catalyst for this decline appears to have been a broker downgrade. According to a note out of Morgan Stanley, its analysts have downgraded the industrial chemicals company's shares to an underweight rating with a $3.20 price target. Although its FY 2019 earnings came in ahead of expectations yesterday, it notes that this was driven by the sale of land.
The OZ Minerals Limited (ASX: OZL) share price has dropped 4% to $10.50. This also appears to have been driven by broker downgrades. This morning Citi downgraded the copper miner's shares to a neutral rating from buy. It also trimmed the price target on its shares to $12.00. Elsewhere, Ord Minnett downgraded its shares to a lighten rating and cut the price target on them to $9.60. Delays in production at Carrapateena appear to be behind these downgrades.
