Why Hot Chili, Jumbo, PYC, and Xero shares are sinking today

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

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. The benchmark index is currently up 0.35% to 8,887.4 points.

Four ASX shares that have failed to follow the market higher today are named below. Here's why they are falling:

Man with a hand on his head looks at a red stock market chart showing a falling share price.

Image source: Getty Images

Hot Chili Ltd (ASX: HCH)

The Hot Chili share price is down 3.5% to $1.87. This follows news that the gold developer has raised $40 million at a discount of $1.65 per new share. The company notes that upon completion of the capital raise, it will be well funded in 2026 to deliver strong growth and development milestones for the Costa Fuego copper-gold project, which is located in the coastal range of Chile. Hot Chili's managing director, Christian Easterday, said: "We are delighted by the overwhelming support received from new and existing institutional investors, as well as our top three major shareholders, in the Placement. The strong participation from these groups highlights the confidence in our strategy to continue driving Hot Chili's re-rate into a rising copper market."

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo share price is down 6% to $9.91. Investors have been selling this online lottery ticket seller's shares despite it delivering a strong half-year update this morning. The company revealed that revenue is expected to rise 29% to $85.3 million in the first half, after total transaction value (TTV) increased 15.7% to $524.7 million. Underlying EBITDA is expected to be $37.5 million for the first half. This will be up 22.6% from $30.6 million in the prior corresponding period. This strong performance was achieved despite the broader lottery environment being relatively weak.

PYC Therapeutics Ltd (ASX: PYC)

The PYC Therapeutics share price is down 6% to $1.50. This has been driven by the completion of an institutional placement. The precision medicine company has attracted strong support from new investors and existing institutional shareholders. This saw PYC receive commitments for a total of $537 million at an offer price of $1.50 per new share. The financing has extended its cash runway through to 2030. This will allow PYC to deliver important human safety and efficacy data for all four of its drug development programs.

Xero Ltd (ASX: XRO)

The Xero share price is down 13% to $83.05. Investors have been selling this cloud accounting platform provider's shares following a brutal selloff in the tech sector on Wednesday amid AI disruption concerns. This has seen the S&P/ASX All Technology Index sink over 6% this afternoon. Not even a number of bullish broker notes have been able to stop Xero shares from crashing. One of those was from Macquarie Group Ltd (ASX: MQG), which has retained its outperform rating with an improved price target of $233.80.

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive, Macquarie Group, and Xero. The Motley Fool Australia has positions in and has recommended Macquarie Group and Xero. The Motley Fool Australia has recommended Jumbo Interactive. 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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