Why Eagers Automotive, Inghams, Patriot Battery Metals, and Wildcat shares are sinking

These shares are having a tough time on hump day. But why?

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A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash

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The S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. In afternoon trade, the benchmark index is up slightly to 7,857.2 points.

Four ASX shares that are acting as a drag on the market today are listed below. Here's why they are falling:

Eagers Automotive Ltd (ASX: APE)

The Eagers Automotive share price is down 14% to $10.51. This follows the release of an update at the auto retailer's annual general meeting on Wednesday. The company said: "Given the current market and business dynamics, and with a cautious lens on consumer sentiment, we expect to achieve an underlying trading performance for the first half of 2024 that is approximately 85% of the underlying profit before tax for the first half of 2023."

Inghams Group Ltd (ASX: ING)

The Inghams share price is down almost 14% to $3.29. Investors have been rushing to the exits today amid reports that bird flu was detected at a farm in Victoria. According to the ABC, this is the first time in four years that bird flu has appeared in Australia and has sparked concerns of a global outbreak. Given how quickly it can spread, investors appear to be fearing that Inghams could soon be impacted. This would likely be very disruptive to poultry sales and supplies.

Patriot Battery Metals Inc. (ASX: PMT)

The Patriot Battery Metals share price is down 9% to 90.2 cents. This morning, this lithium developer announced a C$75 million capital raising. Patriot decided to raise funds in response to the current advantageous flow through financing conditions in Canada. The placement received strong demand from existing and new institutional, professional and sophisticated investors. Existing substantial investors also maintained their pro-rata in the placement, which included committing to a four month hold on new securities. Proceeds from the flow through capital raise will be used exclusively on exploration at the Corvette Lithium Project.

Wildcat Resources Ltd (ASX: WC8)

The Wildcat Resources share price is down 6.5% to 49.5 cents. This is despite the lithium explorer announcing drilling results on Wednesday. Wildcat announced high-grade lithium results from its Luke Pegmatite discovery. It believes this highlights the growing potential of the Tabba Tabba Lithium Project, near Port Hedland, in the Pilbara region of Western Australia. Managing Director, AJ Saverimutto said: "These latest broad mineralised zones at the Luke Pegmatite are exceptional. We are very excited, as the new results confirm the discovery has broad, high-grade zones sitting directly beneath our Leia Pegmatite body. Luke has potential to have a significant positive impact on the overall system." Some investors may have been expecting even stronger results.

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Eagers Automotive Ltd. 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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