In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street's lead and dropped into the red. At the time of writing, the benchmark index is down 0.2% to 7,239.9 points.
Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:
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Australian Ethical Investment Ltd (ASX: AEF)
The Australian Ethical share price is down 5% to $4.49. Investors have been selling this fund manager's shares following the release of a guidance update. The company revealed that it expects to report an underlying profit after tax and before performance fees of $4.5 million to $5 million for the first half of FY 2023.
Breville Group Ltd (ASX: BRG)
The Breville share price is down over 4% to $18.86. This appears to have been driven by a broker note out of Credit Suisse. According to the note, the broker has downgraded this appliance manufacturer's shares to an underperform rating with an $18.61 price target. The broker has concerns that consumer spending on household goods could weaken.
Iluka Resources Limited (ASX: ILU)
The Iluka share price is down 3.5% to $9.83. A broker downgrade also appears to be behind this decline. According to a note out of Citi, its analysts have downgraded the mineral sands producer's shares to a sell rating with a $9.50 price target. The broker made the move partly on valuation grounds following a strong rally.
Pilbara Minerals Ltd (ASX: PLS)
The Pilbara Minerals share price is down 11% to $4.06. This follows the release of a broker note out of Morgans, broad weakness in the lithium industry, and the results of the company's latest lithium digital auction. The latter revealed a softening of lithium prices since last month, which appears to have spooked the market given recent bearish forecasts.
