The Polynovo Ltd (ASX: PNV) share price is down heavily on Monday. At the time of writing, it is around 12.2% IN THE RED.
That's significantly worse than the S&P/ASX 200 Index (ASX: XJO) which is only down by 0.1%. Meanwhile, the S&P/ASX Small Ordinaries Index (ASX: XSO) is down by 0.75%.
Small-cap ASX shares are hurting more than their larger counterparts.
The business hasn't released any news today. Indeed, it has been around a month since the company announced anything.
There are many other smaller ASX shares that are also down heavily. For example, the Appen Ltd (ASX: APX) share price is down 15.3%, the Cettire Ltd (ASX: CTT) share price is down 14.1%, the Sezzle Inc (ASX: SZL) share price is down 11.7%, the Archer Materials Ltd (ASX: AXE) share price is down 11.2% and the Praemium Ltd (ASX: PPS) share price has dropped around 11%.
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Why is the Polynovo share price hurting?
Sometimes there isn't an explainable reason. There isn't any company-specific news.
However, when looking at the Polynovo share price, it is only back down to where it was last week.
Over the past month, it is still up by 16% despite today's decline. So, this could simply be some investors taking short-term profit off the table.
Reporting by the Australian Financial Review indicates that there is going to be a "global economic slowdown" as business activity was weaker than expected in the US and Europe. With strong inflation ongoing, this could mean central banks aren't able to create a "soft landing" for the global economy.
