Image source: Getty Images
In the afternoon of trading, S&P/ASX 200 Index (ASX: XJO) is back on form and on track for strong growth. At the time of writing, the benchmark index rose by 1% to 6,930.9 points.
Listed below are four ASX stocks that failed to follow the market’s rally today. Here’s why they provide:
A2 Milk Company Ltd (ASX: A2M)
A2 Milk shares fell 2% to $5.15. This may have been caused by concerns about the state of the baby formula market in China. On Monday, a smaller competitor revealed that the market was flooded with suppliers. This can lead to reduced demand, discounting and lower margins.
Argosy Minerals Limited (ASX: AGY)
Shares in Argosy Minerals fell 4% to 49.5 cents. This followed the release of an update on the development of the Rincon lithium project in Argentina. This update shows that 98% of the 2,000 tpa operational development work is complete. However, investors seem frustrated by the slow progress, given that 97% of the work was completed last month.
Dicker Data Ltd (ASX: DDR)
Dicker Data shares fell nearly 3% to $10.47. Ord Minnett responded to the company’s third quarter update this morning by maintaining a hold rating with a $11.50 price target. The broker notes that Dicker Data’s performance in the third quarter was affected by rising costs and pressure in the supply chain. On the positive side, though, the broker emphasizes that demand remains strong and its order book is up.
Life360 shares fell 3% to $6.71. This despite the fact that there is no news from the location company. However, it should be noted that the price of Life360 shares increased by 40% in October. This may have resulted in some investors taking profits on Tuesday.