Two ASX Shares Plunge Amidst Market Turbulence

May 24, 2024 04:03 PM AEST | By Team Kalkine Media

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Two ASX Shares Plunge Amidst Market Turbulence — Image source: © Supparsorn | Megapixl.com

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As the trading week draws to a close, the S&P/ASX 200 Index is facing significant headwinds, with the benchmark index plummeting by around 1% to 7,728.70 points in Friday’s afternoon trade. Amidst this downturn, several ASX-listed companies are witnessing substantial declines, with two shares standing out for their notable losses. Let's delve into why these stocks are taking a hit:

AIC Mines Ltd (ASX: A1M)

The AIC Mines share price is nosediving by over 9% to AU$ 0.535, triggered by the completion of the copper miner's institutional placement earlier today. AIC Mines disclosed firm commitments amounting to AU$ 57.2 million from institutional and sophisticated investors for placement of 110 million new shares at an issue price of AU$ 0.52 per share. While the placement is intended to fuel the advancement of the Jericho link drive, investors seem to be reacting negatively to the dilutionary impact of the offering. Despite a remarkable 90% surge since March, today's drop underscores the volatility inherent in the mining sector.

Nufarm Ltd (ASX: NUF)

Nufarm's share price is witnessing a further 3% drop to AU$ 4.60, as investors continue to react to the company's disappointing half-year results released earlier this week. Falling short of profit expectations, Nufarm's performance has failed to impress, prompting brokerage firm Bell Potter to retain a hold rating and slash its price target. The challenging fiscal outlook underscores the tough road ahead for the agricultural chemicals company, contributing to ongoing market pessimism surrounding its shares.

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