Why Allkem, Nuix, Whitehaven Coal, and Zip shares are sinking today

These ASX shares are ending the week deep in the red…
The post Why Allkem, Nuix, Whitehaven Coal, and Zip shares are sinking today appeared first on The Motley Fool Australia. –

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has come under significant pressure and is on course to record a big decline. At the time of writing, the benchmark index is down 2.3% to 7,176 points.

Four ASX shares that have fallen more than most today are listed below. Here’s why they are sinking:

Allkem Ltd (ASX: AKE)

The Allkem share price has sunk 8% to $10.22. This appears to have been driven by a broker note out of UBS. According to the note, the broker has downgraded the lithium miner’s shares to a neutral rating with a price target of $11.20. While UBS is positive on lithium prices and expects Allkem to benefit greatly, it doesn’t see enough value in its shares now to maintain a buy rating.

Nuix Ltd (ASX: NXL)

The Nuix share price has crashed 21% to a new low of $1.62. Investors have been selling the investigative analytics and intelligence software provider’s shares following another disappointing update. Nuix advised that it expects to post a small decline in revenue during the first half and a more than 50% reduction in EBITDA.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is down 7.5% to $2.73. This morning the coal miner downgraded its guidance for FY 2022 due to La Niña and COVID impacts. Whitehaven Coal now expects coal production of 19 to 20.5 Mt in FY 2022. This is down from 20 to 21.5 Mt previously. In addition, coal sales have been downgraded and costs have been upgraded.

Zip Co Ltd (ASX: Z1P)

The Zip share price is down 8% to a new 52-week low of $3.33. This was driven by a combination of weakness in the tech sector and a broker note out of Macquarie. In respect to the latter, the broker has retained its underperform rating and slashed its price target on the buy now pay later provider’s shares by 40% to $3.40. Macquarie notes that Zip’s momentum in the key US market is slowing in response to customer additions.

The post Why Allkem, Nuix, Whitehaven Coal, and Zip shares are sinking today appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

Zip (ASX:Z1P) share price sinks 8% to 52-week low after brokers weigh in on its Q2 update

Whitehaven (ASX:WHC) share price plunges 8% following ‘La Nina and COVID impacts’

ASX 200 (ASX:XJO) midday update: Whitehaven sinks, BHP to unify

Nuix (ASX:NXL) share price crashes 11% amid another disappointing update

Why BrainChip, GrainCorp, Redbubble, and Zip shares are dropping today

Motley Fool contributor James Mickleboro owns Orocobre Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!