The S&P/ASX 200 Index (ASX: XJO) is having a strong session on Thursday. In afternoon trade, the benchmark index is up 1.2% to 9,097.8 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:
Lynas Rare Earths Ltd (ASX: LYC)
The Lynas Rare Earths share price is down almost 4% to $20.81. This appears to have been driven by broad weakness in the critical minerals space on Thursday, which could be due to a combination of profit-taking and concerns over the impending meeting between the US and China. If the meeting leads to China easing its export controls on rare earths, then it could put pressure on the prices of these elements.
Electro Optic Systems Holdings Ltd (ASX: EOS)
The EOS share price is down 5% to $5.92. This seems to be another case of profit taking from investors on Thursday. This defence and space company's shares have pulled back materially in recent sessions. As a result, they are now down by a sizeable 30% since this time last week. However, it is worth noting that EOS shares are still smashing the market with a stunning year to date gain. Even after this recent weakness, the company's shares are up over 300% in 2025. This has been driven by some significant counter-drone contracts and the increasingly positive outlook for defence spending globally.
Novonix Ltd (ASX: NVX)
The Novonix share price is down 22% to 79.5 cents. This may also have been driven by the same reasons mentioned above for Lynas Rare Earths. China is also planning to restrict its graphite exports. This has put a rocket under Novonix shares this month. So much so, they are still up a whopping 80% since this time last month despite today's significant pullback.
Xero Ltd (ASX: XRO)
The Xero share price is down 1% to $155.42. This appears to be down to broad weakness in the tech sector on Thursday, which has offset some good news from the cloud accounting platform provider. Xero revealed that it has completed the acquisition of Melio. It is a leading US based small business bill pay platform that seamlessly enables customers to manage their cashflow by offering easy-to-use accounts payable workflows and a wide choice of payment methods. Xero agreed to pay a total of US$2.5 billion for the acquisition. This is being funded through a combination of cash, debt, and new Xero shares.
