BHP, GNG and NVX: Three ASX Shares Tumble Amid Market Weakness

2 min read | May 30, 2024 05:07 PM AEST | By Team Kalkine Media

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BHP, GNG and NVX: Three ASX Shares Tumble Amid Market Weakness — Image source: © Supparsorn | Megapixl.com

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Thursday proved to be another challenging session for the S&P/ASX 200 Index, which fell 0.49% to 7,628.20 points. Among the shares experiencing significant declines, three in particular stood out. Here's a closer look at why these ASX shares are underperforming today:

BHP Group Ltd (ASX: BHP)

The BHP Group share price fell nearly 1.73% to AU$44.30. This drop is primarily due to overall weakness in the mining sector today. Additionally, BHP's decision to abandon its proposed takeover of Anglo American (LSE:AAL) added to the pressure. BHP withdrew after Anglo American refused to extend the deadline for a firm offer, citing unresolved concerns about the proposed structure and the value it would deliver to shareholders. Anglo American stated: "BHP has not addressed the Board's fundamental concerns relating to the disproportionate execution risk associated with the proposed structure and the value that would ultimately be delivered to Anglo American's shareholders."

GR Engineering Services Ltd (ASX: GNG)

GR Engineering Services saw its share price dip 3.67% to AU$2.10 following a guidance update released this morning. The company now expects FY 2024 revenue to be between AU$415 million and AU$430 million, down from the previous guidance range of AU$500 million to AU$530 million. This reduction reflects delays in anticipated contract awards. However, there is a silver lining: the company still expects its EBITDA to increase year on year, projecting a range of AU$50 million to AU$51 million for FY 2024, up from AU$44.4 million in FY 2023.

Novonix Ltd (ASX: NVX)

Novonix's share price dropped almost 4.17% to 69 cents, influenced by broader weakness in the battery materials industry following a rough night for related stocks on Wall Street. This overshadowed the positive update on Novonix's Riverside facility. The company announced that once the facility reaches its targeted capacity of 20,000 tonnes per annum, it expects to achieve operating margins between 23% and 30%, excluding any benefits from Section 301 tariffs.

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