Why Brightstar, Eagers Automotive, Regis Resources, and Westpac shares are sinking

These shares are starting the week in the red. But why?

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The S&P/ASX 200 Index (ASX: XJO) is out of form and on course to start the week with a disappointing decline. In afternoon trade, the benchmark index is down 1.15% to 8,657.4 points.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Brightstar Resources Ltd (ASX: BTR)

The Brightstar Resources share price is down 10% to 48.5 cents. Investors have been selling this gold explorer's shares after it announced plans to acquire Aurumin Ltd (ASX: AUN). The two parties have entered into a scheme implementation deed which will see Brightstar acquire 100% of Aurumin's issued capital at a 21% premium of 9.9 cents per share. Brightstar's managing director, Alex Rovira, said: "This is a compelling transaction for all stakeholders, and we believe that combining Aurumin and Brightstar represents a unique opportunity to build a Western Australian gold business of genuine scale with demonstrable upside that also de-risks future development activities and operations at Sandstone."

Eagers Automotive Ltd (ASX: APE)

The Eagers Automotive share price is down 2.5% to $19.09. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has downgraded the auto retailer's shares to a sell rating but with an improved price target $16.50. This implies potential downside of 13.5% from current levels. It made the move on valuation ground and in response to concerns over its expansion overseas.

Regis Resources Ltd (ASX: RRL)

The Regis Resources share price is down almost 4% to $4.30. This morning, this lithium miner released its fourth quarter and full year update. It revealed that group FY 2025 production of came in at 373,000 ounces, which is towards the top end of the guidance range. Its all-in sustaining costs (AISC) of $2,531 per ounce was in the bottom half of its guidance range. It is possible that its guidance for FY 2026 has disappointed investors. Production and costs are expected to be largely flat year on year.

Westpac Banking Corp (ASX: WBC)

The Westpac Banking share price almost 4% to $33.05. This is despite there being no news out of the banking giant today. However, it is worth highlighting that most ASX bank stocks are falling today and weighing heavily on the local share market. It seems that investors could finally be locking in gains and rotating into other areas of the market.

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 positions in and 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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