Why Advance Nanotek, BHP, Limemade, & Metcash shares are sinking

BHP Group Ltd (ASX:BHP) and Metcash Limited (ASX:MTS) are two of four ASX shares sinking lower on Tuesday. Here's why…

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The S&P/ASX 200 Index (ASX: XJO) is having a very positive day on Tuesday. In afternoon trade, the benchmark index is up 1.2% to 6,856.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are sinking:

Advance Nanotek Ltd (ASX: ANO)

The Advance Nanotek share price is down 9% to $4.01. This may be due to profit taking after some strong gains recently. As the company creats ingredients that go into sunscreen products, investors may have been hopeful that demand will increase now that COVID-19 vaccines are being rolled out.

BHP Group Ltd (ASX: BHP)

The BHP share price is down 1.5% to $47.19. This is despite there being no news out of the mining giant today. However, while Goldman Sachs continues to rate BHP shares as a buy, this morning it warned that iron ore was likely to go from being in a deficit this year to a surplus in 2022. This is expected to put pressure on the price of the steel making ingredient.

Limeade Inc (ASX: LME)

The Limeade share price has continued its slide and is down a further 2.5% to 88.5 cents despite a rebound in the tech sector. Investors have been selling the employee experience software company's shares since the release of its results last month. Particularly disappointing investors was its guidance for FY 2021. Management expects revenue of US$50 million to US$53 million. This is a decline on FY 2020's revenue of US$56.6 million. Falling customer numbers is weighing on its performance.

Metcash Limited (ASX: MTS)

The Metcash share price is down 3.5% to $3.40 following the release of its strategy update. At the event, the wholesale distributor also revealed that its strong sales momentum had continued for all business segments during the second half of 2021. Supermarket, hardware, and liquor sales have all experienced double-digit growth compared to the prior corresponding period. Investors may have been expecting an even stronger update.

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 Advance NanoTek Limited and Limeade, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. 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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