Why ASX, CSL, Galan Lithium, and NextDC shares are dropping today

These shares are starting the week in the red. Let's find out why.

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Key points

  • ASX Ltd drops almost 7% as it implements strategic commitments in response to ASIC's inquiries, requiring significant capital accumulation, which places investor focus on regulatory compliance and financial adjustments.
  • CSL slips over 2%, impacted by a Macquarie downgrade that highlights risks from competitive pressures and guidance uncertainties, leading to a price target reduction amid shifting valuation methods.
  • Galan Lithium declines nearly 2% despite positive project advancement news, with potential profit-taking overshadowing progress as its shares have seen substantial gains since November, balancing investor sentiment.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline. At the time of writing, the benchmark index is down 0.8% to 8,627.7 points.

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

ASX Ltd (ASX: ASX)

The ASX share price is down almost 7% to $53.03. Investors have been selling the stock exchange operator's shares after it committed to a strategic package of actions with the Australian Securities and Investments Commission (ASIC). These commitments address the findings contained in an interim report from the expert ASIC Inquiry Panel and are designed to deliver confidence in ASX as a provider of critical market infrastructure. One action will be ASX accumulating an additional $150 million of capital above net tangible asset (NTA) value by 30 June 2027. This will then be in place until agreed milestones in the revised accelerate program are completed to the satisfaction of ASIC.

CSL Ltd (ASX: CSL)

The CSL share price is down over 2% to $179.77. This is likely to have been driven by a broker note out of Macquarie Group Ltd (ASX: MQG) on Monday. According to the note, the broker has downgraded the biotech giant's shares to a neutral rating with a reduced price target of $188.00. It said: "With the risk of share losses from CIs in CIDP, we downgrade CSL to Neutral (from Outperform). We also see risks to FY26 guidance, given it is in the second half club, noting significant headwinds in 1H26. Our TP declines -32% from A$275.20 to A$188.00 reflecting a shift away from DCF valuation (~A$228) given uncertainty in CSL's long-term earnings profits and towards PE valuation based on a basket of comps with similar EPS growth (~$175)."

Galan Lithium Ltd (ASX: GLN)

The Galan Lithium share price is down almost 2% to 26.5 cents. This is despite the release of a positive update on the progress of its phase 1 construction activities for Hombre Muerto West (HMW), as it advances towards its final stages. Galan's managing director, Juan Pablo Vargas de la Vega, said: "The project is transitioning into an exciting final phase of construction and commissioning. The momentum being built across the team gives us confidence as we move toward becoming a producing lithium company." It is possible that profit taking from some investors is overshadowing the news. After all, its shares are up almost 70% since the start of November.

Nextdc Ltd (ASX: NXT)

The Nextdc share price is down almost 2% to $13.28. This appears to have been driven by weakness in the tech sector on Monday. Investors have been selling AI stocks following a selloff on the tech-focused Nasdaq index on Friday night.

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