The S&P/ASX 200 Index (ASX: XJO) has fought back from a poor start and is in positive territory. At the time of writing, the benchmark index is up 0.2% to 8,668.6 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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Larvotto Resources Ltd (ASX: LRV)
The Larvotto Resources share price is down 16% to $1.12. Investors have been selling the company's shares after it announced a binding agreement to acquire 100% of Hammer Metals by way of a Board recommended scheme of arrangement. Hammer shareholders will receive 1 Larvotto share for every 22 Hammer shares held. This implies an equity value of approximately $54 million. Management believes the acquisition advances Larvotto's strategy to build a leading, Australian critical minerals and precious metals company with a focus on antimony, gold, and copper production. Based on the share price reaction, it seems that some investors are not keen on the deal.
Newmont Corporation (ASX: NEM)
The Newmont share price is down almost 4% to $132.11. Investors have been selling the gold miner's shares today after the price of the precious metal tumbled in response to surging oil prices. There are concerns that high fuel prices could push inflation higher and lead to rate hikes from central banks. The S&P/ASX All Ordinaries Gold index is down 1% at the time of writing.
Qantas Airways Ltd (ASX: QAN)
The Qantas share price is down 3% to $9.02. This may have also been driven by a jump in oil prices overnight. As fuel is usually an airline's biggest expense, higher oil prices are bad news for them. And given how tensions are escalating in the Middle East again this week, it seems that some investors believe that oil prices could remain higher for longer.
Steadfast Group Ltd (ASX: SDF)
The Steadfast share price is down 2% to $5.28. It is possible that some investors are taking profit today after the insurance brokerage company's shares rocketed on Wednesday following the receipt of a takeover proposal. Steadfast received a conditional, non-binding and indicative offer from Amwins Group and Dragoneer Investment Group to acquire it at a price of $6.00 cash per share (less any dividends declared or paid). The company responded, stating: "The Steadfast Board confirms that, subject to reaching agreement on acceptable terms of a binding scheme implementation deed, it intends to unanimously recommend that Steadfast shareholders vote in favour of the Potential Transaction, in the absence of a superior proposal and subject to an independent expert concluding, and continuing to conclude, that the Potential Transaction is in the best interests of Steadfast shareholders."
