Why Arafura Rare Earths, Bapcor, Codan, and Newmont shares are sinking today

S&P/ASX All Ords GoldThe S&P/ASX 200 Index (ASX: XJO) is having a difficult time on Wednesday. In afternoon trade, the benchmark index is down 0.8% to 9,020.4 points.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura Rare Earths share price is down 8% to 44 cents. This appears to have been driven by profit taking from investors after this rare earths developer's shares surged in recent weeks. In fact, the buzz around rare earths has seen Arafura Rare Earths shares more than double in value in the space of a month. On Tuesday, the company received conditional approval from the Australian Government for an equity investment of up to US$100 million. This is to progress its strategically significant Nolans Project in the Northern Territory.

Bapcor Ltd (ASX: BAP)

The Bapcor share price is down a further 2% to $2.46. This auto parts retailer's shares have been sold off this week following the release of a trading update. Bapcor revealed that it expects its first half underlying profit to be in the range of $14 million to $18 million. This is down sharply from $45.5 million a year ago. And although management is expecting a stronger second half, and is guiding to full year statutory profit in the range of $40 million to $50 million, investors don't appear confident this will be achieved. In response to its trading update, Morgans retained its hold rating with a heavily reduced price target of $2.75 (from $3.90).

Codan Ltd (ASX: CDA)

The Codan share price is down almost 2% to $33.50. This follows the release of an update at the electronic products company's annual general meeting. Management said: "The conditions observed at 30 June 2025 have largely continued into FY26, supporting Codan's growth outlook across both Communications and Minelab." It notes that the Communications business is expected to deliver 15% to 20% revenue growth in FY 2026. Whereas the Minelab business' "overall revenues for the first quarter of FY26 have exceeded the monthly average achieved in FY25 by 16%." However, with the gold price crashing overnight, investors may believe that metal detector demand could ease if the price of the precious metal doesn't rebound.

Newmont Corporation (ASX: NEM)

The Newmont share price is down over 9% to $131.62. Investors have been selling Newmont and other ASX gold stocks on Wednesday following a sharp pullback in the gold price overnight. This has led to the S&P/ASX All Ords Gold index sinking a whopping 9% today. This may have been driven by a combination of profit taking from traders and easing demand for safe haven assets.

The post Why Arafura Rare Earths, Bapcor, Codan, and Newmont shares are sinking today appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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 Scott Phillips.

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