In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a positive note. At the time of writing, the benchmark index is up 0.4% to 7,040.4 points.
Four ASX shares that have failed to follow the market higher are listed below. Here's why they are sinking:
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Carsales.Com Ltd (ASX: CAR)
The Carsales share price is down 10.5% to $17.45. This follows the successful completion of the institutional component of its $600 million pro rata accelerated renounceable entitlement offer. Carsales raised $428 million at a 12.9% discount of $17.00. The auto listings company will now seek to raise a further $172 million from retail shareholders. These funds are being used to acquire a 49% stake in United States-based business Trader Interactive.
Incitec Pivot Ltd (ASX: IPL)
The Incitec Pivot share price is down 3% to $2.34. This follows the release of a weaker than expected half year result. The industrial chemicals company posted a 6.7% decline in revenue to $1,724.1 million and a 30.8% decline in earnings before interest and tax (EBIT) to $110 million. According to a note out of Goldman Sachs, its analysts were forecasting revenue of $1,825 million and EBIT of $171 million.
Infinity Lithium Corp Ltd (ASX: INF)
The Infinity Lithium share price has crashed 66% lower to 6.5 cents. Investors have been selling the lithium explorer's shares following an update on its San José Lithium Project in Spain. According to the release, Infinity Lithium has received notification that the Investigation Permit Valdeflorez (PIV) application has been cancelled at the project. This was due to the urban unfeasibility of the research permit. This essentially means the project has been deemed to be too close to the local town. Infinity Lithium will appeal the decision.
Nuix Ltd (ASX: NXL)
The Nuix share price is down 8% to $3.18. This follows a joint investigation by The Sydney Morning Herald, The Age, and The Australian Financial Review. That investigation raises questions about the technology company's governance and financial accounts. Nuix has responded by defending its business and processes. It commented: "Nuix has in place robust processes to measure forward indicators of performance in order to ensure that it keeps the market fully informed and has done so on a timely and regular basis."
