In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.2% to 8,913.2 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:
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Arafura Rare Earths Ltd (ASX: ARU)
The Arafura Rare Earths share price is down 16% to 18.5 cents. Investors have been selling this rare earths developer's shares after it received firm commitments for an ~$80 million two-tranche institutional placement at a 13.6% discount of 19 cents per new share. The company notes that the transaction received strong support from high-quality domestic and international institutional investors. This includes its largest shareholder, Hancock Prospecting. Arafura's managing director, Darryl Cuzzubbo, said: "This inbound led Placement partially de-risks the final equity raise while also enhances the Company's negotiating leverage as we look to close out discussions with a range of potential strategic equity partners and deliver on the equity funding strategy."
DroneShield Ltd (ASX: DRO)
The DroneShield share price is down 9.5% to $3.45. Investors have been selling DroneShield and other defence stocks today after the Ukraine and Russia agreed to have talks. They may believe that a peace deal could lessen demand for DroneShield's counter drone technology in the near term and dampen its explosive growth.
Iluka Resources Ltd (ASX: ILU)
The Iluka Resources share price is down 7.5% to $6.10. This follows the release of the mineral sands and rare earths company's half year results. Iluka reported an 8% decline in mineral sands revenue to $558 million and a 31% drop in net profit after tax to $92 million. The company stated: "2025 has been characterised by global economic uncertainty. Shifting trade patterns and geopolitical conflicts have affected Iluka's businesses in different ways, with mineral sands market conditions subdued and the rare earths industry evolving rapidly."
James Hardie Industries plc (ASX: JHX)
The James Hardie share price is down 29% to $31.48. This has been driven by the building materials company's first quarter update. James Hardie posted net sales of US$900 million and adjusted EBITDA of US$226 million. This represents declines of 9% and 21%, respectively, over the prior corresponding period. CEO Aaron Erter said: "Our first quarter results were largely as we had anticipated, and reflect an expected normalization of channel inventories, due to moderating growth expectations by customers as uncertainty built throughout April and early May."
