AUS
NZ
UK
CA
USA
IND
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On Thursday, the Australian Securities Exchange (ASX) saw a mixed performance, with the S&P/ASX 200 Index experiencing a strong session, climbing 0.5% to reach 7,029.4 points. However, some ASX shares faced a challenging day, prompting investors to sell their holdings. Let's delve into the reasons behind the struggles of these four ASX-listed companies.
- Brainchip Holdings Ltd (ASX: BRN)
Brainchip's share price witnessed a significant decline of 16%, settling at 21 cents. This downturn was a result of investors selling off the semiconductor company's shares following its confirmation that there was no justifiable reason for the previous day's sharp increase. Speculators had misjudged the situation, leading to this correction.
- Healius Ltd (ASX: HLS)
Healius experienced a 6.5% drop in its share price, falling to $1.85. This decline was potentially instigated by a broker note from Citi, issued earlier in the day. Although Citi maintained its neutral rating, it substantially reduced its price target by 28% to $2.15. Citi expressed concerns about HLS's FY24e EBIT forecasts, which were approximately 7% below consensus due to lower revenue and margin projections, highlighting potential downside risks.
- Westpac Banking Corp (ASX: WBC)
Westpac's share price experienced a 2% dip, reaching $21.26. This downturn was attributed to the WBC's shares going ex-dividend today for its upcoming final dividend. Eligible shareholders now anticipate receiving a fully franked dividend of 72 cents per share on 19 December.
- Xero Limited (ASX: XRO)
Xero faced an 11% decline in its share price, settling at $102.03. Investors were prompted to sell after the cloud accounting platform’s half-year results fell short of expectations. Although Xero reported a commendable 90% increase in EBITDA, reaching NZ$206 million, this still fell 5% below consensus estimates. The primary contributing factor was a weaker-than-anticipated performance from its international operations.
Conclusion
While the S&P/ASX 200 Index exhibited strength on Thursday, several individual ASX shares faced challenges, prompting investors to opt for the sell button. Brainchip Holdings, Healius Ltd, Westpac Banking Corp, and Xero Limited all experienced notable downturns, each for distinct reasons.
