In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and dropped into the red. At the time of writing, the benchmark index is down 0.7% to 7,474.9 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:
Andromeda Metals Ltd (ASX: ADN)
The Andromeda Metals share price is down 36% to 11.2 cents. This follows the release of the definitive feasibility study (DFS) for the Great White Kaolin Project in South Australia. Management estimates that the project has a pre-tax net present value (NPV) of $613 million. Some investors appear to have been expecting a much larger kaolin project.
Block Inc (ASX: SQ2)
The Block share price is down 7% to $178.48. This follows an equally sharp decline for the payments giant’s shares on Wall Street last night. Investors were selling tech stocks amid fears that rate rises could slow economic growth. It isn’t just Block that is falling on Wednesday. The S&P/ASX All Technology index is down by 2.4% this afternoon.
Paladin Energy Ltd (ASX: PDN)
The Paladin Energy share price is down 4% to 77 cents. This follows news that the uranium producer has completed a $200 million institutional placement. These funds were raised at an 8.9% discount of 72 cents per new share. Paladin Energy launched its capital raising to support the restart of the globally significant Langer Heinrich Mine.
Zip Co Ltd (ASX: Z1P)
The Zip share price is down 5% to $1.47. Investors have been selling this buy now pay later provider’s shares following weakness in the tech sector and a subdued response to its share purchase plan. In respect to the latter, Zip has raised an additional $24 million at $1.48 per new share. This was less than half the $50 million it was seeking from retail shareholders.
The post Why Andromeda Metals, Block, Paladin Energy, and Zip shares are dropping appeared first on The Motley Fool Australia.
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More reading
- Zip share price sinks following share purchase plan results
- ASX 200 (ASX:XJO) midday update: Block and Zip sink, Paladin Energy raises $200m
- Here’s why the Paladin Energy share price is sliding today
- ASX 200 (ASX:XJO) midday update: IGO dealt blow, Block’s data breach, Xero jumps
- Why are ASX tech shares having such a stellar day?
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 Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. 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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