Why Arafura Rare Earths, Bank of Queensland, CSL, and Strike shares are falling today

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

Key points
  • The S&P/ASX 200 Index is trending downward during afternoon trade, with notable declines in four prominent shares.
  • Arafura Rare Earths shares dropped by 19% following news of a significant capital raise via an institutional placement at a discount. 
  • Declines in Bank of Queensland, CSL, and Strike Energy are linked to ex-dividend dates, downgraded guidance, and quarterly updates, respectively.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decline. At the time of writing, the benchmark index is down 0.9% to 8,931.7 points.

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

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.

Image source: Getty Images

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura Rare Earths share price is down 19% to 30.5 cents. This has been driven by news that the rare earths developer has received commitments to raise $475 million via a two-tranche institutional placement at a discount of 28 cents per new share. Arafura's largest shareholder, Hancock Prospecting, has committed ~$125 million to the placement. Arafura's CEO, Darryl Cuzzubbo, said: "The strength of demand received for this capital raising has definitively validated the importance of Arafura's role in a diversified global supply chain. We have progressively delivered a funding solution that will support a final investment decision announcement early next year and see us commence construction of what will be an iconic project for Australia of global significance."

Bank of Queensland Ltd (ASX: BOQ)

The Bank of Queensland share price is down 3% to $6.86. The catalyst for this has been the regional bank's shares going ex-dividend this morning for its latest dividend. Eligible shareholders can now look forward to receiving a fully franked 20 cents per share dividend next month on 21 November.

CSL Ltd (ASX: CSL)

The CSL share price is down 4% to $171.03. This biotechnology giant's shares have come under pressure this week after it downgraded its guidance for FY 2026. This was driven largely by softer than expected demand for influenza vaccines in the United States. For the same reason, the company has also trimmed its FY 2027 and FY 2028 earnings guidance. Morgans thinks it is a buying opportunity. It said: "Although it remains challenging to know when US influenza vaccination rates will stabilise, we believe the risk of a permanently lower base is being over-priced, with Seqirus and Vifor marked down, with even Behring trading below peers and well under its long-term average, which we see as unjustified. We lower FY26-28 net profit forecasts by up to 14.3%, with our PT decreasing to A$249.51 (from A$293.83). BUY."

Strike Energy Ltd (ASX: STX)

The Strike Energy share price is down 2.5% to 11.2 cents. This morning, this energy producer released its first quarter update and revealed an 8% decline in production. Despite this, the company still reported a 3% increase in sales revenue to $18.32 million for the three months.

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. 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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