Why Appen, BWX, Imugene, and Wesfarmers shares are dropping

These ASX shares are dropping into the red today…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 0.7% to 6,751.5 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Appen Ltd (ASX: APX)

The Appen share price is down 7% to $5.92. This follows broad weakness in the tech sector following a poor night of trade on the tech-focused Nasdaq index. The selling in the sector today has led to the S&P ASX All Technology index dropping 1.3% at the time of writing.

BWX Ltd (ASX: BWX)

The BWX share price has crashed 41% to 69 cents. This follows the launch of a fully underwritten $23.2 million capital raising at a whopping 48.7% discount of 60 cents per share. In addition, the personal care products company downgraded its earnings guidance materially for FY 2022 due to challenging retail conditions. That’s despite its most recent guidance update being made last month.

Imugene Limited (ASX: IMU)

The Imugene share price is down over 10% to 21.5 cents. This decline appears to have been driven by profit taking after some very strong gains by the immuno-oncology company’s shares Monday. Investors were bidding Imugene’s shares higher following the release of promising study results.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is down 2.5% to $43.04. Wesfarmers and a number of retailers have come under pressure today after a leading broker downgraded their shares due to concerns over a softer consumer demand backdrop. In respect to Wesfarmers, analysts at Ord Minnett downgraded the company’s shares to a lighten rating with a $41.20 price target.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd. The Motley Fool Australia has positions in and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended BWX Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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