Why are these small cap shares underperforming amidst ASX 200 gains?

July 23, 2024 03:06 PM AEST | By Team Kalkine Media

Google News:

Why are these small cap shares underperforming amidst ASX 200 gains? — Image source: shutterstock

Recent News

What are next big copper projects? UBS tells when equipment makers cou...

EUR/USD poised to rack up more gains as ECB and Fed rate paths set to...

Carney launches ‘One Canadian Economy’ Act to unify trade, approvals

Trump signs orders to enhance drone defenses, support supersonic trave...

While the S&P/ASX 200 Index surged 0.7% to 7,985 points on Tuesday afternoon, several ASX-listed companies failed to capitalise on the positive sentiment, experiencing notable declines. Here’s a closer look at three shares that struggled to follow the broader market trend:

DroneShield Ltd (ASX: DRO)

DroneShield shares plummeted 3.87% to AU$1.49 as investors responded to the company’s half-year update. Bell Potter downgraded DroneShield from a buy to a hold rating but increased its price target from AU$1.00 to AU$1.60. The downgrade was based on concerns over short-term performance and future contract announcements despite the company's strong positioning in counter-drone technology, driven by geopolitical tensions and advancements in AI. Investors appear cautious amidst potential volatility in DroneShield's share price.

Ora Banda Mining Ltd (ASX: OBM)

Ora Banda Mining saw its share price drop nearly 4.11% to AU$0.40 following the release of its fourth-quarter update. Despite producing 19,271 ounces of gold in the quarter—a notable 11% increase from the previous quarter—the company reported an all-in-sustaining cost (AISC) of AU$2,878 per ounce. While meeting its production guidance for the year with 69,932 ounces at an AISC of AU$2,767 per ounce, some investors may have expected stronger performance metrics, leading to the share price decline.

Step One Clothing Ltd (ASX: STP)

Step One Clothing’s shares fell 5.61% to AU$1.68 despite no specific news catalysts. The online underwear retailer had seen a robust performance earlier in July, with shares up 23% due to positive trading updates. However, today’s decline suggests profit-taking or market adjustments following the recent price surge. The company continues to benefit from strong investor interest driven by its growth potential and strategic market positioning.

These declines highlight how investor sentiment can vary widely even amidst a positive broader market environment. While the S&P/ASX 200 index showed resilience and upward momentum, specific factors unique to each company—such as earnings reports, analyst downgrades, and market expectations—have influenced individual stock performances.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.