Why Mesoblast, Northern Star, SEEK, & WiseTech Global shares are sinking lower

SEEK Limited (ASX:SEK) and WiseTech Global Ltd (ASX:WTC) shares are two of four sinking notably lower on Wednesday. Here's why…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

After a positive start to the day, the S&P/ASX 200 Index (ASX: XJO) has given back its gains and is dropping lower. In late morning trade the benchmark index is down 0.3% to 6,118.2 points.

Four shares that are falling more than most today are listed below. Here's why they are sinking lower:

The Mesoblast limited (ASX: MSB) share price has continued its slide and is down 8.5% to $3.07. Investors have been selling the biotechnology company's shares amid doubts over the likelihood that the U.S. FDA will approve its remestemcel-L product candidate as a treatment for paediatric steroid-resistance acute graft versus host disease. Mesoblast is due to meet with the Oncologic Drugs Advisory Committee (ODAC) on Thursday evening. The ODAC is a key player in the regulation of cancer drugs and plays a big role in whether a drug gets approval or not.

The Northern Star Resources Ltd (ASX: NST) share price has fallen 6% to $14.38 after the gold price crashed lower overnight. Increasing investor risk appetite because of improving economic data and a potential coronavirus vaccine led to the precious metal losing almost 6% of its value during overnight trade. It isn't just Northern Star sinking lower. The S&P/ASX All Ordinaries Gold index is down 4.8% at the time of writing.

The SEEK Limited (ASX: SEK) share price has sunk over 10% to $19.21 following the release of its full year results. The job listings giant reported a 51% decline in net profit after tax to $90.3 million for FY 2020. While this was largely expected by the market, its outlook for FY 2021 appears to have underwhelmed. Due to the pandemic, SEEK has suggested that its EBITDA and net profit after tax could drop 20.5% and 78%, respectively.

The WiseTech Global Ltd (ASX: WTC) share price has fallen 6% to $19.40. This appears to have been driven by a broker note out of Citi this morning. Its analysts have downgraded the logistics solutions company's shares to a sell rating with a reduced price target of $18.40. It made the move after revising its earnings estimates lower due largely to the tough macroeconomic environment.

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of WiseTech Global. The Motley Fool Australia has recommended SEEK Limited. 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.

More on Share Fallers

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Cettire, Digico, KMD, and WiseTech shares are falling today

These shares are out of form on Friday. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Charter Hall Retail, DroneShield, FBR, and St Barbara shares are tumbling today

These shares are having a tough time on Tuesday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why EML, GQG Partners, IGO, and Integrated Research shares are sinking today

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of…

Read more »

A woman with short brown hair and wearing a yellow top looks at the camera with a puzzled and shocked look on her face as the Westpac share price goes down for no reason today
Share Fallers

Why Bellevue Gold, Mesoblast, Pilbara Minerals, and Wesfarmers shares are dropping today

These shares are ending the week deep in the red. What's going on?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why AGL, CBA, Deep Yellow, and Megaport shares are sinking today

These shares are falling more than most today. What's going on?

Read more »

A wide-eyed man peers out from a small gap in his black zipped jumper conveying fear over the weak Zip share price
BNPL shares

Why did the Zip share price just crash 9%?

Investors seem to be singling Zip out for punishment today...

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Share Fallers

Why Capricorn Metals, Insignia, Sayona Mining, and Southern Cross Gold shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Data#3, Elders, Karoon Energy, and Tyro shares are falling today

These shares are having a tough session on Tuesday. But why?

Read more »