Why Baby Bunting, Galan Lithium, Suncorp, & Vulcan shares are sinking

These ASX shares are under pressure on Friday…

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The S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is pushing higher. In afternoon trade, the benchmark index is up 0.5% to 7,625.2 points.

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

A man stands in front of a chart with an arrow going down and slaps his forehead in frustration.

Image source: Getty Images

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price is down 5% to $5.68. This follows the release of the baby products retailer's full year results for FY 2021. That release revealed that Baby Bunting achieved a 15.6% increase in sales to $468.4 million and a 34.8% jump in net profit after tax to $26 million. Although this was strong, its subdued start to FY 2022 appears to have spooked investors. Baby Bunting advised that same stores sales are down 6.4% as of 12 August.

Galan Lithium Ltd (ASX: GLN)

The Galan Lithium share price has fallen 4.5% to $1.22. This morning the lithium explorer announced firm commitments to raise $50 million through a two-tranche institutional placement. These funds will be raised at $1.15 per share, which represents a 10.2% discount to its last closing price. Galan Lithium plans to use the proceeds to accelerate the development of its lithium projects.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price has dropped 3.5% to $12.34. The insurance and banking giant's shares have tumbled today after they traded ex-dividend for its upcoming final and special dividends. Eligible shareholders can now look forward to receiving fully franked dividends totalling 48 cents per share on 22 September.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan share price is down 4% to $14.64. This is despite there being no news out of the lithium developer. However, with the lithium sector running hot this week, profit taking appears to be weighing on Vulcan's shares. In fact, even after today's gain, the Vulcan share price is up almost 15% since this time 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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting. 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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