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As the trading week draws to a close, several ASX-listed shares find themselves in the red, mirroring the broader downturn in the market. In afternoon trade, the S&P/ASX 200 Index is poised to conclude the week on a somber note, with the benchmark index dipping by 1.31% to 7,582.40 points at the time of writing.
Among the prominent casualties of the market downturn are three ASX shares experiencing sharper declines than most. Here's a breakdown of why they're faltering:
BHP Group Ltd (ASX: BHP)
The BHP share price takes a significant hit, plummeting by over 4.30% to AU$43.28. The downturn follows news of BHP's overture to acquire Anglo American (LSE:AAL) in an all-scrip deal valued at 31.1 billion pounds (~AU$60 billion). If successful, the acquisition would create the largest copper miner globally. However, investor sentiment appears lukewarm towards the proposed deal, evident from the sharp decline in BHP's shares today.
Lynas Rare Earths Ltd (ASX: LYC)
Lynas Rare Earths' share price tumbles by 2.0% to AU$6.20 apiece, driven by a downgrade from Citi. The brokerage firm downgrades the rare earths producer's shares to a sell rating from neutral, slashing its price target from AU $6.70 to AU $5.30. This revision implies a potential downside of 15% from current levels. Citi's pessimism stems from its bearish outlook on rare earths prices, anticipating further declines fueled by robust production growth in China.
Metals X Ltd (ASX: MLX)
Metals X faces a sharp decline of 5.32% to 44 cents as investors react to its quarterly update. The tin producer's management cites lower-than-planned ore grade mined and milled, impacting tin production for the quarter. Notably, the company's 50% owned Renison project reports a 16.3% decrease in tin-in-concentrate production compared to the prior corresponding period, further exacerbating investor concerns.
The downturn in these ASX-listed shares underscores the prevailing market volatility and investor apprehensions surrounding specific company developments. As the trading day unfolds, market participants closely monitor unfolding events and economic indicators for cues regarding future market direction and investor sentiment.
