Why Core Lithium, Firefinch, Smartgroup, and Zip shares are falling

These ASX shares are starting the week in the red…

| More on:
a person in a business suit wipes his forehead with his handkerchief while a red, falling arrow zigzags downwards behind him

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) has started the week positively and is on course to record a decent gain. In afternoon trade, the benchmark index is up 0.3% to 7,439.6 points.

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

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 8.5% to 57 cents. This is despite there being no news out of the lithium developer. However, with its shares up over 250% in 2021 prior to today, this decline could have been driven by profit taking from some investors.

Firefinch Ltd (ASX: FFX)

The Firefinch share price is down 8.5% to 59.5 cents. This morning the gold and lithium explorer announced a share purchase plan aiming to raise $25 million at a discount of 58 cents per share. The funds will be used to ramp up activities at the Viper and N'Tiola satellites and the Morila Super Pit.

Smartgroup Corporation Ltd (ASX: SIQ)

The Smartgroup share price has crashed 11% to $8.32. Investors have been selling this fleet management and salary packaging company's shares after takeover talks with the TPG Global and Potentia Capital consortium collapsed. The consortium had tabled a $10.35 per share offer but after a period of due diligence lowered its offer to $9.25 at the weekend. This was rejected by the Smartgroup Board.

Zip Co Ltd (ASX: Z1P)

The Zip share price is down over 2.5% to $6.78. This appears to have been driven by weakness in the tech sector following a poor end to the week on the tech-focused Nasdaq index. In addition, this morning UBS retained its sell rating and $5.40 price target on the company's shares. It notes that BNPL surcharges may soon be allowed in Australia. The broker sees this as an incremental negative.

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 shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended SMARTGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Elders, IDP Education, Life360, and Pilbara Minerals shares are falling today

Let's see why investors are selling these shares.

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Share Fallers

The 5 worst performing ASX 200 shares in May unmasked

These five ASX 200 shares got smashed in May. But why?

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why Brazilian Rare Earths, Mineral Resources, Pilbara Minerals, and Syrah shares are falling

Why are these shares starting the week in the red?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Brainchip, Findi, Lottery Corp, and REA shares are falling today

These shares are ending the week in the red. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why ALS, Black Cat, Boss Energy, and Soul Patts shares are falling today

These shares are falling on Thursday. Let's find out why.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why ALS, Fisher & Paykel Healthcare, IPD, and Predictive Discovery shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A man looks down with fright as he falls towards the ground.
Share Fallers

Why Aspen, Healius, Nufarm, and Propel shares are falling today

These shares are having a tough session on Tuesday. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why Elders, James Hardie, Origin Energy, and SGH shares are falling today

These shares are starting the week in the red. But why?

Read more »