The S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. In afternoon trade, the benchmark index is up 0.8% to 7,152.8 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:
BrainChip Holdings Ltd (ASX: BRN)
The BrainChip share price is down 5% to 95 cents. This is despite there being no news out of the artificial intelligence technology company. However, with a market capitalisation approaching almost $2 billion and next to no revenue being generated, investors may have concerns over its valuation.
Firefinch Ltd (ASX: FFX)
The Firefinch share price is down 11% to 29 cents. Investors appear to be struggling to value Firefinch without its lithium operations. Those operations are currently being spun off as a separate listing – Leo Lithium. In other news, there was disappointment in West Africa over Mali’s military junta government’s decision to extend the transition back to civilian rule by 24 months. Firefinch’s operations are in Mali.
Magellan Financial Group Ltd (ASX: MFG)
The Magellan share price has continued its slide and is down 4% to $12.62. Investors have been selling this fund manager’s shares this week following another disappointing monthly update which revealed a sizeable decline in funds under management. In addition, the company was dumped from the ASX 100 index.
Westpac Banking Corp (ASX: WBC)
The Westpac share price is down 6% to $22.04. Investors have been selling the banks today due to concerns over the Reserve Bank’s aggressive rate hikes. There are fears that this could create challenges for the banking sector. This includes headwinds from more expensive wholesale funding, a weaker housing and mortgage market, and a greater risk of recession.