Shares of James Hardie Industries Plc tumbled after competitors in the US home improvement sector issued fresh warnings, compounding an already dismal year for the company's management and investors.

The dual-listed building products company saw its shares plummet as much as 17% during early Sydney trading on Thursday. This followed disappointing earnings updates from several US housing market players, triggering a temporary trading halt before closing down 13%.

With its US-dominated revenue stream facing growing uncertainty in the housing market, James Hardie has lost nearly half its market value this year. As a supplier for home repair and remodeling projects, its performance serves as a barometer for the broader US economy.

The overnight selloff was sparked by flooring manufacturer Trex Co., whose profit warning about "continued softness" in repair and remodeling sent its shares crashing up to 30%. The pain spread across the sector - Owens Corning missed earnings due to weak residential demand, while Home Depot Inc. and Lowe's Cos. Inc. also declined on similar concerns.

For James Hardie, this wave of negative industry updates marks one of its toughest years since listing. Its troubles stem from March's controversial $8.4 billion cash-and-stock deal to acquire Chicago-based flooring supplier AZEK, which drew investor backlash.

The acquisition's steep price tag and potential share dilution alarmed shareholders, while management's decision to bypass shareholder approval fueled rare investor revolt. At last month's AGM, shareholders ousted Chair Anne Lloyd, rejected the remuneration report, and voted against raising non-executive directors' pay pool.

Compounding matters, MSCI announced it would remove James Hardie from its Australia index later this month. During the subsequent trading halt, the ASX sought clarification for the plunge. The company attributed the drop partly to the MSCI exclusion but declined to comment on current demand.