Insurance comparison company iSelect has further extended its losses after its disastrous debut on the Australian Stock Exchange yesterday.
The share price slid 1.9% to $1.53 at 1510 AEST, taking its total decline to 17.6% following its initial public offer of $1.85.
The wider market has slid by 1.8% over the past two days.
IG market strategist Evan Lucas said negative sentiment toward the stock may be because the company's comparison business – for which it derives 80% of its total revenue – has low barriers to entry, with competition from privately-owned comparethemarket.com.au and larger peers including Insurance Australia Group, AMP and Suncorp starting up the same service.
"The technology that iSelect is offering is not groundbreaking and it's not as hard as it looks,'' he said. "It does look like iSelect may struggle over the next coming months.''
However, iSelect's own life and car insurance plans are representing a larger proportion of sales, and it is looking to enter the superannuation market.
Major shareholders include co-founder Damien Waller with a 9% stake and US-based private equity fund Spectrum with 7.6%.
Ninemsn sold its 35% stake in iSelect for $113.5 million as part of the float.