In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down 0.1% to 7,306.7 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:
ARB Corporation Limited (ASX: ARB)
The ARB share price has crashed 13% to $33.03 following the release of a market update. That update revealed that the 4×4 parts manufacturer expects to report a 12% increase in revenue to $700 million in FY 2022. However, due to a large increase in expenditure, its margins and earnings are under significant pressure.
AVZ Minerals Ltd (ASX: AVZ)
The AVZ share price has sunk 20% to 78.7 cents. Incredibly, the AVZ share price was up as much as 19% at one stage today before capitulating. Although the lithium developer has been granted a mining licence, there are concerns over just how much of the Manono Lithium Project it will end up owning.
Temple & Webster Group Ltd (ASX: TPW)
The Temple & Webster share price is down 7% to $5.01. This morning the online furniture and homewares retailer announced its expansion into the home improvement market with its The Build business. While the home improvement market is clearly a big opportunity, launching a business that is expected to be loss-making for several years in the current environment doesn’t appear to have gone down well with the market.
Zip Co Ltd (ASX: ZIP)
The Zip share price is down 11% to $1.03. The weakness in this buy now pay later provider’s shares appears to have been driven by a couple of factors. One is the impending release of a sizeable number of shares from escrow. The other is a bearish broker note out of UBS from yesterday. The latter saw the broker reiterate its sell rating and cut its price target on Zip’s shares down to a lowly 90 cents.