The S&P/ASX 200 Index (ASX: XJO) is on form and on course to record a strong gain. In afternoon trade, the benchmark index is up 0.6% to 7,558.2 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:
A2 Milk Company Ltd (ASX: A2M)
The A2 Milk share price is down over 1% to $5.11. Investors have been selling this infant formula company's shares following the release of a bearish broker note out of Citi. According to the note, the broker has downgraded A2 Milk's shares to a sell rating and slashed their price target by almost a third to $4.80. This was driven by weakening Chinese ecommerce infant formula prices and COVID lockdowns impacting ports. The broker has also recently warned of potential delays to the company's China label registration renewal.
IGO Ltd (ASX: IGO)
The IGO share price is down 3% to $14.56. This follows news that its planned acquisition of Western Areas Ltd (ASX: WSA) was dealt a major blow. While it has yet to be confirmed, IGO advised that it understands the independent expert has concluded that its takeover offer is not in the best interests of Western Areas' shareholders. In light of this, IGO is expecting the Western Areas board to terminate the scheme implementation deed.
Lynas Rare Earths Ltd (ASX: LYC)
The Lynas share price is down 4% to $10.92. This is despite there being no news out of the rare earths producer. Though, it is worth noting that Iluka Resources Ltd (ASX: ILU) has just announced that it will go ahead with phase three of the Eneabba Rare Earths Refinery in Western Australia. Iluka's refinery will produce high value rare earth oxides neodymium, praseodymium, dysprosium and terbium.
Sayona Mining Ltd (ASX: SYA)
The Sayona Mining share price is down 4.5% to 31.5 cents. A number of lithium miners are falling heavily today amid weakness in the sector. This appears to have been driven by profit taking after some very strong gains in recent weeks. The Sayona Mining share price, for example, is still up 140% in the space of a month after this decline.
