Key takeaways:

• Battery metals stocks shoot the lights out as buying support reemerges 

Despite several banks trading ex-dividend this week, and gold stocks taking a breather, the ASX held up well as tech, lithium, and real estate shares surged.

Which shares excelled?

Shares in lithium producer Allkem (ASX: AKE) rocketed higher this week after the company announced it will merge with Livent (NYSE: LTHM) to create a New York-listed global lithium giant. Both companies conduct lithium operations in Argentina, with the pair proving a natural fit given they produce lithium from groundwater brines.

At the time of the deal being announced, the proposed merged entity was commanding a valuation of nearly $16 billion, with ownership split 56-44 in Allkem favour. The combined business is also set to list on the ASX through CHESS depositary interests, where it would find itself comfortably within the ASX 200.

Another lithium high-flyer this week is Core Lithium (ASX: CXO). While Allkem merger news buoyed the sector, news of Core Lithium first spodumene concentrate shipment also lit a fuse under the company share price. Approximately 5,500 tonnes of 5.6% Li2O spodumene concentrate is being shipped from Darwin port to Sichuana Yahua.

Furthermore, CXO received mining authorisation and approval by the Northern Territory government for its Mine Management Plan for the BP33 underground project. As the final step in the approval process, investors will now wait for news regarding a potential investment decision for the second proposed mine at the company Finniss Project.

In keeping with the battery metals theme, Lynas Rare Earths (ASX: LYC) also makes an appearance among the week major movers. On Monday the company shares leapt as much as 12% on the back of news Lynas has received permission to continue importing and processing lanthanide concentrate at its Malaysian facility until the start of next year. 

Of course, management hasn't abandoned plans to overturn the looming ban entirely. If the ban proceeds, it would require the company to transition from lanthanide concentrate to feedstock from its rare earths processing facility in Kalgoorlie.

Delivering a guidance upgrade, Graincorp (ASX: GNC) shares soared 10% yesterday. The diversified Australian agribusiness handed down its HY23 results, and while EBITDA fell 10% to $383 million, and NPAT dropped 18.7% to $200 million, it was the company outlook that delighted investors. 

With its export program operating nearly at full capacity as asset utilisation and output improved, management opted to hike the company earnings outlook. The business is now expected to deliver between $500 million and $560 million in EBITDA, up from a range of $470 million to $530 million. Furthermore, net profit was revised 20% higher at the midpoint of the range, with new guidance set between $220 million and $260 million.

There were also encouraging performances over recent days from Life360 (ASX: 360), Mesoblast (ASX: MSB), Alpha HPA (ASX: A4N), Silex Systems (ASX: SLX), and Weebit Nano (ASX: WBT).

Which shares dragged on the market?

After rallying for much of 2023 thus far, gold stocks headline the list of the week underperformers. However, it wasn't so much tier one producers as much as mid-size operators that felt the squeeze, including Silver Lake Resources (ASX: SLR), Capricorn Metals (ASX: CMM), Resolute Mining (ASX: RSG), De Grey Mining (ASX: DEG), and Bellevue Gold (ASX: BGL).Aside from the gold price losing some momentum late in the week, there was a specific catalyst for Silver Lake Resources' decline. The gold miner informed the market it is submitting a revised bid to acquire certain gold assets from ASX-listed peer St Barbara (ASX: SBM). Management intends to pay $707 million for SBM Leonora gold assets, and given the market reaction, shareholders may believe that is a stretch.Australia-based onshore energy producer and urea manufacturer Strike Energy (ASX: STX) is also among the week laggards. Earlier in the week the company updated the market on activities at the 100% owned and operated permit EP506 - Eneabba Deep. 

In what seemed a positive development, Strike confirmed it has received all regulatory approvals to commence its 128km 2D seismic campaign. Nonetheless, the news proved a selling opportunity as STX shares struggled to recover from that point.

On the outer for the second week running, Polynovo (ASX: PNV) shares set a fresh seven-month low. Last week the medical device maker announced the first sales of its new advanced wound care treatment, NovoSorb MTX. While the market initially cheered that news, momentum turned quickly, with little changing this week. Year-to-date, Polynovo shares are down more than 30%.A few other names nursing modest losses this week include Credit Corp (ASX: CCP), Neuren Pharmaceuticals (ASX: NEU), Australian Agricultural Company (ASX: AAC), and SiteMinder (ASX: SDR).

We'll be back next week with another Weekly ASX Trading Wrap Up - until then, have a great week!