In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. At the time of writing, the benchmark index is up a fraction to 7,480.8 points.
Four ASX shares that haven’t fared as well today are listed below. Here’s why they are dropping:
A2 Milk Company Ltd (ASX: A2M)
The A2 Milk share price is down 4.5% to $4.80. This decline appears to have been driven by a broker note out of Credit Suisse this morning. In response to lockdowns in China and lower birth rate assumptions, its analysts have trimmed their earnings estimates and valuation accordingly. The broker has retained its neutral rating and cut its price target down by 10% to $5.15.
Ionic Rare Earths Ltd (AX: IXR)
The Ionic Rare Earths share price is down 5% to 7.8 cents. This morning the rare earths explorer announced the completion of a $30 million institutional placement. These funds were raised a 7.4 cents per new share, which represents a 10% discount to its last close price. Ionic will use the proceeds for a number of activities including completing the Makuutu Feasibility Study and its application for a mining licence.
Pilbara Minerals Ltd (ASX: PLS)
The Pilbara Minerals share price is down 3.5% to $3.08. This morning the lithium miner provided an update on its joint venture with Korea’s Posco. The two companies will push ahead with the construction of a downstream lithium chemicals conversion facility in South Korea. Management believes the facility will put it in a very strong position to participate as one of the few near-term lithium fine chemicals producers with underwritten raw materials supply. However, the cost of the facility was higher than previous estimates.
Tyro Payments Ltd (ASX: TYR)
The Tyro share price is down 4% to $1.49. This follows weakness in the tech sector, which has offset the release of the payments company’s weekly trading update. The latter revealed that payment volumes were up 53% over the prior corresponding period last week.
The post Why A2 Milk, Ionic Rare Earths, Pilbara Minerals, and Tyro shares are dropping appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of January 12th 2022
More reading
- ASX 200 midday update: IGO increases Western Areas offer, BlueScope makes US acquisition
- Pilbara Minerals share price higher on lithium conversion facility update
- Guess how much you’d have today if you’d bought $10,000 of A2 Milk shares 5 years ago
- Top brokers name 3 ASX shares to sell next week
- These were the worst performers on the ASX 200 last week
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 and has recommended Tyro Payments. The Motley Fool Australia has recommended A2 Milk and Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/iukKDnt
Leave a Reply