Why ARQ Group, Australian Ethical, Objective Corp, Panoramic are dropping lower

The Australian Ethical Investment Limited (ASX:AEF) share price and the Panoramic Resources Ltd (ASX:PAN) share price are two of four dropping lower…

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In afternoon trade the S&P/ASX 200 index is on course to end the week on a high. At the time of writing the benchmark index is up 0.15% to 6,805.3 points.

Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:

The ARQ Group Ltd (ASX: ARQ) share price is down 5% to 36 cents. This decline means the IT company's shares have given back all their gains since they charged higher following a strategic review update on Christmas Eve. That update revealed that its lenders have continued to be supportive despite it breaching its debt covenants. Management also reaffirmed its recently downgraded EBITDA guidance for calendar year 2019.

The Australian Ethical Investment Limited (ASX: AEF) share price has fallen 5% to $3.50. This is despite there being no news out of the ethical investment company. However, with its shares up significantly year to date, this decline could be due to profit taking from some investors. Australian Ethical Investment recently provided its half year guidance. It expects an underlying profit after tax of between $4.2 million and $4.6 million. The mid-point of this range represents a 38.7% increase.

The Objective Corporation Limited (ASX: OCL) share price has dropped 4.5% to $6.25. The catalyst for this might be news that independent non-executive director, Nick Kingsbury, recently sold a large number of shares. The director offloaded 120,000 shares for a total consideration of $704,790.

The Panoramic Resources Ltd (ASX: PAN) share price has crashed 19% lower to 32.7 cents. This follows news that Independence Group NL (ASX: IGO) has pulled the plug on its takeover approach for its fellow nickel producer. Independence intends to let its takeover offer lapse on the evening of January 17. According to the release, it made the move after a number of defeating conditions of its offer were breached.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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