The S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a high. In afternoon trade, the benchmark index is up 0.5% to 7,301.7 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:
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BWX Ltd (ASX: BWX)
The BWX share price is down over 2% to $5.11. This morning the personal care products company announced the completion of the acquisition of vegan-focused online retail platform operator Flora & Fauna. Investors may be disappointed that the new acquisition is only on track to achieve the low end of the guidance range BWX provided when first announcing the deal.
IPH Ltd (ASX: IPH)
The IPH share price is down 5% to $7.56. This appears to have been driven by a broker note out of Goldman Sachs this morning. According to the note, the broker has downgraded the intellectual property services company's shares to a neutral rating with an $8.35 price target. Goldman made the move on valuation grounds.
Novatti Group Ltd (ASX: NOV)
The Novatti share price has sunk 9% to 58 cents. The catalyst for this decline was the company raising $45 million at a 14% discount of 55 cents. This comprises a $40 million placement and a $5 million share purchase plan. These funds will be used to expand the company's presence in existing markets, enter new markets, and acquire a 19.9% interest in Reckon Limited (ASX: RKN).
QBE Insurance Group Ltd (ASX: QBE)
The QBE share price is down 1% to $10.62. This morning the insurance giant revealed that Strand Fitness and others have filed a representative proceeding against QBE Insurance in the Federal Court of Australia. Those proceedings allege that QBE wrongfully denied cover to certain policyholders during the COVID 19 pandemic for losses arising from business interruption. QBE advised that the allegations will be defended. Nevertheless, it is satisfied that its reserving in respect of Business Interruption claims remains robust.
