The S&P/ASX 200 Index (ASX: XJO) has started the week positively and is on course to record a decent gain. In afternoon trade, the benchmark index is up 0.3% to 7,439.6 points.
Four ASX shares that have failed to follow the market’s lead today are listed below. Here’s why they are falling:
Core Lithium Ltd (ASX: CXO)
The Core Lithium share price is down 8.5% to 57 cents. This is despite there being no news out of the lithium developer. However, with its shares up over 250% in 2021 prior to today, this decline could have been driven by profit taking from some investors.
Firefinch Ltd (ASX: FFX)
The Firefinch share price is down 8.5% to 59.5 cents. This morning the gold and lithium explorer announced a share purchase plan aiming to raise $25 million at a discount of 58 cents per share. The funds will be used to ramp up activities at the Viper and N’Tiola satellites and the Morila Super Pit.
Smartgroup Corporation Ltd (ASX: SIQ)
The Smartgroup share price has crashed 11% to $8.32. Investors have been selling this fleet management and salary packaging company’s shares after takeover talks with the TPG Global and Potentia Capital consortium collapsed. The consortium had tabled a $10.35 per share offer but after a period of due diligence lowered its offer to $9.25 at the weekend. This was rejected by the Smartgroup Board.
Zip Co Ltd (ASX: Z1P)
The Zip share price is down over 2.5% to $6.78. This appears to have been driven by weakness in the tech sector following a poor end to the week on the tech-focused Nasdaq index. In addition, this morning UBS retained its sell rating and $5.40 price target on the company’s shares. It notes that BNPL surcharges may soon be allowed in Australia. The broker sees this as an incremental negative.
The post Why Core Lithium, Firefinch, Smartgroup, and Zip shares are falling appeared first on The Motley Fool Australia.
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More reading
- Firefinch (ASX:FFX) share price sinks 7% amid $25m cap raise
- What do analysts think of the Zip (ASX:Z1P) share price following the rebrand?
- Smartgroup (ASX:SIQ) share price crashes 16% amid takeover collapse
- Afterpay (ASX:APT) and other BNPL shares in focus as RBA looks to rein in regulation
- Why Aussie Broadband, Core Lithium, Cardno, and Nuix are storming higher
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. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended SMARTGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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