Why Mesoblast, Myer, Premier Investments, and Vulcan shares are falling today

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

| More on:
Man with a hand on his head looks at a red stock market chart showing a falling share price.

Image source: Getty Images

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

The S&P/ASX 200 Index (ASX: XJO) is bouncing back from yesterday's selloff and is pushing higher. At the time of writing, the benchmark index is up 0.4% to 8,225.4 points.

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

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is down 7% to $2.61. This morning, this the allogeneic cellular medicines developer for inflammatory diseases announced that it has completed a global private placement. According to the release, this placement was made primarily to its existing major US, UK, and Australian shareholders. This has seen the biotech company raise a total of A$260 million (US$160 million) at a price of A$2.50 per new share. This represents a discount of 11% to where the Mesoblast share price last traded. The proceeds will be used partly to fund the US commercial launch of Ryoncil (remestemcel-L) for steroid-refractory acute graft-versus host disease (SR-aGvHD) in pediatric patients.

Myer Holdings Ltd (ASX: MYR)

The Myer share price is down a further 5.5% to 83.2 cents. This department store operator's shares have been sold off this week following the release of a disappointing trading update. For the 22 weeks ended 28 December, group comparable sales were in line with the prior corresponding period, but total sales were down 0.8% to approximately $1,592 million. Things were much worse for Myer's earnings, with EBIT down approximately 25% to $48 million.

Premier Investments Ltd (ASX: PMV)

The Premier Investments share price is down a further 5% to $26.41. Investors have also been selling the retail conglomerate's shares this week after it released a trading update. The Smiggle and Peter Alexander owner expects first half underlying Retail EBIT to be in the range of $160 million to $165 million. This represents a sizeable 21.3% to 23.7% decline year on year. In response, Goldman Sachs has taken a hammer to its earnings estimates. It said: "We update our forecasts for PMV post its worse than expected 1H25 trading update. We cut our FY25-27e group sales by ~4% and EBIT by ~18%."

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan Energy share price is down over 2% to $6.01. This may have been driven by profit taking from some investors after very strong gains over the past 12 months. Despite all the doom and gloom in the lithium industry, Vulcan's shares have rallied approximately 180% since this time last year. Even yesterday its shares defied the market selloff after announcing the first production of its battery quality lithium hydroxide monohydrate (LHM).

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Premier Investments. 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 ALS, Black Cat, Boss Energy, and Soul Patts shares are falling today

These shares are falling on Thursday. Let's find out why.

Read more »

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

Why ALS, Fisher & Paykel Healthcare, IPD, and Predictive Discovery shares are falling today

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

Read more »

A man looks down with fright as he falls towards the ground.
Share Fallers

Why Aspen, Healius, Nufarm, and Propel shares are falling today

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

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why Elders, James Hardie, Origin Energy, and SGH shares are falling today

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

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why Catalyst Metals, Duratec, Nufarm, and Rio Tinto shares are dropping today

These shares are ending the week in the red. 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 Dexus, Mayne Pharma, Nufarm, and Treasury Wine shares are falling today

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

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why James Hardie, Mayne Pharma, Nufarm, and Resimac shares are falling today

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

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Kogan, Monash IVF, OFX, and ResMed shares are falling today

Why are these shares taking a tumble today? Let's find out.

Read more »