Why Kathmandu, New Hope, Recce, & Ramelius shares are dropping lower today

Kathmandu Holdings Ltd (ASX:KMD) and Recce Pharmaceuticals Ltd (ASX:RCE) shares are two of four tumbling lower on Wednesday…

| 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

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. At the time of writing the benchmark index is up 1.6% to 5,878.5 points.

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

The Kathmandu Holdings Ltd (ASX: KMD) share price has dropped 3% to $1.14. This follows the release of the retailer's full year results this morning. For the 12 months ending 31 July 2020, Kathmandu reported a 48.7% increase in sales to NZ$801.5 million. This was driven largely by a nine-month contribution from the acquired Rip Curl business. Management revealed that COVID-19 impacted sales by an estimated NZ$135 million in FY 2020.

The New Hope Corporation Limited (ASX: NHC) share price has fallen 3% to $1.17. Investors have been selling the coal miner's shares after brokers responded negatively to its full year results. One broker that didn't like what it saw was Macquarie. This morning it retained its underperform rating and cut its price target down to 90 cents. On Tuesday New Hope posted a 17% decline in revenue to $1,084 million and a 69% decline in profit after tax to $120 million.

The Recce Pharmaceuticals Ltd (ASX: RCE) share price has dropped a sizeable 7% to $1.52. This follows the completion of a placement to raise ~$28 million. The pharmaceutical company raised the funds through the placement of 21.5 million shares to institutional, professional, and sophisticated investors at a sizeable discount of $1.30 per share. Proceeds will be used to advance Recce's synthetic anti-infective pipeline.

The Ramelius Resources Limited (ASX: RMS) share price is down 6.5% to $2.18. Investors have been selling Ramelius and other gold miners on Wednesday after improving investor sentiment weighed on demand for safe haven assets. The spot gold price is currently down 0.2% to US$1,903.60 an ounce according to CNBC.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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

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 »

A man in a suit looks sad as oil is spilled from a barrel.
Energy Shares

This $1 billion ASX 200 energy stock is diving 7%! Here's why

This ASX energy company is taking a beating on Tuesday. But why?

Read more »

A man looking at his laptop and thinking.
Technology Shares

Why did the Appen share price crash 15% today?

Appen shares remain up more than 250% this year.

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 Boss Energy, Digico, Platinum, and Resolute shares are dropping today

These shares are starting the week in the red. But why?

Read more »

A disappointed female investor sits in front of her laptop and puts her hand to her forehead and closes her eyes in disappointment over share price falls
Share Fallers

Why Metcash, Regis Resources, Rio Tinto, and Vulcan shares are dropping today

These shares are ending the week in the red. But why? Let's find out.

Read more »