The S&P/ASX 200 Index (ASX: XJO) is back on form and edging higher on Wednesday. At the time of writing, the benchmark index is up 0.2% to 7,731.9 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:
APA Group (ASX: APA)
The APA Group share price is down 1% to $7.88. Investors have been selling this energy infrastructure company's shares after it announced a non-cash impairment of approximately $145 million to the Moomba Sydney Ethane Pipeline (MSEP). The expected impairment would result in a full write down of the current book value of the MSEP. Management notes that the impairment is non-cash, represents approximately 1% of APA's market capitalisation, and has no impact on liquidity. Furthermore, there is no change to its FY 2024 distribution or underlying EBITDA guidance.
Chalice Mining Ltd (ASX: CHN)
The Chalice Mining share price is down 11% to $1.34. This is quite a turnaround for the mineral exploration company's shares. They were up as much as 8% this morning before sinking deep into the red. Investors were buying its shares after it announced a non-binding memorandum of understanding (MOU) with Mitsubishi Corporation. This MOU will see two parties work together with the intention of forming a potential strategic partnership to develop the 100%-owned Gonneville PGE-Nickel-Copper-Cobalt Project in Western Australia. However, given how MOUs are non-binding, investors don't appear to see much value in the announcement at this stage.
Guzman Y Gomez Ltd (ASX: GYG)
The Guzman Y Gomez share price is down 1% to $25.25. Investors continue to sell down this quick service restaurant operator's shares due to concerns over its sky-high valuation. Not even a bullish broker note out of Morgans has been enough to stop its shares from falling today. Morgans has initiated coverage on the company with an add rating and $30.00 price target.
Monadelphous Group Ltd (ASX: MND)
The Monadelphous share price is down 3% to $12.69. This appears to have been driven by a broker note out of Bell Potter this morning. According to the note, the broker has downgraded this mining services company's shares to a hold rating (from buy) with a trimmed price target of $14.00 (from $15.40). Its analysts said: "We have adopted a conservative short-to-medium term outlook for EC division activity, reflecting a quietening major project development pipeline, with limited visibility on near-term contract awards."
