In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has come under significant pressure and is on course to record a big decline. At the time of writing, the benchmark index is down 2.3% to 7,176 points.
Four ASX shares that have fallen more than most today are listed below. Here's why they are sinking:
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Allkem Ltd (ASX: AKE)
The Allkem share price has sunk 8% to $10.22. This appears to have been driven by a broker note out of UBS. According to the note, the broker has downgraded the lithium miner's shares to a neutral rating with a price target of $11.20. While UBS is positive on lithium prices and expects Allkem to benefit greatly, it doesn't see enough value in its shares now to maintain a buy rating.
Nuix Ltd (ASX: NXL)
The Nuix share price has crashed 21% to a new low of $1.62. Investors have been selling the investigative analytics and intelligence software provider's shares following another disappointing update. Nuix advised that it expects to post a small decline in revenue during the first half and a more than 50% reduction in EBITDA.
Whitehaven Coal Ltd (ASX: WHC)
The Whitehaven Coal share price is down 7.5% to $2.73. This morning the coal miner downgraded its guidance for FY 2022 due to La Niña and COVID impacts. Whitehaven Coal now expects coal production of 19 to 20.5 Mt in FY 2022. This is down from 20 to 21.5 Mt previously. In addition, coal sales have been downgraded and costs have been upgraded.
Zip Co Ltd (ASX: Z1P)
The Zip share price is down 8% to a new 52-week low of $3.33. This was driven by a combination of weakness in the tech sector and a broker note out of Macquarie. In respect to the latter, the broker has retained its underperform rating and slashed its price target on the buy now pay later provider's shares by 40% to $3.40. Macquarie notes that Zip's momentum in the key US market is slowing in response to customer additions.
