The S&P/ASX 200 Index (ASX: XJO) is losing momentum today, slipping into negative territory. As of now, the benchmark index is down 0.2% to 8,041 points. Several ASX200 shares are feeling the pinch more acutely than others. Here’s a closer look at why four prominent shares are dropping:
Alumina Ltd (ASX: AWC)
Alumina's share price has taken a 5% hit, now trading at $1.53. Despite positive news that its major shareholder, CITIC Group, supports its takeover by Alcoa Corp (NYSE: NYSE:AA) and plans to vote in favor, the share price has not reacted positively. CITIC Group holds an 18.9% stake in Alumina. The lack of positive movement is due to the takeover being an all-scrip deal, meaning Alumina’s shares are closely tied to Alcoa’s performance. With Alcoa’s shares plummeting on Wall Street overnight, Alumina’s shares have mirrored this decline.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Domino's Pizza shares have dropped a significant 9% to $32.89. This follows the announcement that the pizza chain will close approximately 800 underperforming stores in Japan. However, management has assured that the majority of customers from these stores will still be serviced by remaining stores in the delivery network. In France, Domino's is targeting a net reduction of 10-20 stores in FY 2025. The company believes that orders from closed stores will be absorbed by neighboring locations, improving overall earnings.
DroneShield Ltd (ASX: DRO)
DroneShield’s share price has slipped 2.5% to $1.78. The counter-drone company's shares have come under pressure after an impressive rally that saw its market capitalization rise to approximately $2 billion. The recent decline appears to be driven by profit-taking from some investors, leading to a broader sell-off. Despite this week's downturn, DroneShield’s shares are still up nearly 500% compared to this time last year.
WiseTech Global Ltd (ASX: WTC)
WiseTech Global’s share price has fallen 5.5% to $94.28. Investors have been offloading WiseTech and other ASX tech stocks following a significant sell-off on the Nasdaq index in the US. Investors were locking in gains and shifting their focus away from high-flying tech stocks, impacting the S&P/ASX All Technology Index, which fell by 2.2% today.
The overall sentiment in the ASX market today reflects broader global trends, with Wall Street's movements influencing local investor behavior. As the market reacts to these developments, it will be interesting to see how these ASX shares navigate the ongoing challenges.