ASX Trading Wrap: IGO, Pilbara slump on lithium price outlook
Rene Anthony
Key takeaways:
The ASX wasted no time clawing back some of its recent losses, which followed a decision by the Federal Reserve to keep interest rates steady
Which Shares Excelled
In the trading spotlight, Inghams (ASX: ING) saw its shares ascend, propelled by a promising report for the first half. This rise was backed by stronger wholesale pricing, increased demand for poultry products, and a successful overhaul in operational strategies.
Financial triumph was evident for Mader Group (ASX: MAD), as they announced a striking 37% increase in year-over-year revenue for the first quarter of FY24, reaching $185.1 million. This was complemented by a substantial 51% boost in EBITDA, thanks to prudent margin enhancements.
A strategic move by Mineral Resources saw a near 20% stake acquisition in Wildcat Resources (ASX: WC8), setting the stage for merger and acquisition speculation and highlighting Wildcat’s market potential.
Neuren Pharmaceuticals (ASX: NEU) experienced a vigorous recovery, signaling investor confidence as it moved away from a significant low, marking its position as a prominent growth stock.
The week also closed on a high note for Johns Lyng Group (ASX: JLG), Champion Iron (ASX: CIA), Polynovo (ASX: PNV), and Dicker Data (ASX: DDR), with each of these entities posting strong returns and contributing to the market’s overall performance.
Which Shares Dragged
The market’s momentum faced headwinds with IGO’s shares (ASX: IGO) taking a hit. The company’s alert on potential lower lithium prices overshadowed their record spodumene production and reduced cash costs, leading to shareholder unrest.
Concern over lithium prices also permeated through the sector, affecting Allkem (ASX: AKE), Pilbara Minerals (ASX: PLS), and Liontown Resources (ASX: LTR), as investors navigated the volatile pricing landscape.
The coal sector saw New Hope Corporation (ASX: NHC) and Whitehaven Coal (ASX: WHC) grapple with a steep decline in coal prices, impacting their market performance negatively for the week.
Origin Energy (ASX: ORG) faced market skepticism as AustralianSuper considered rejecting a takeover bid, casting doubts over the deal’s future and affecting the company’s stock valuation.
Entertainment and energy sectors also felt the pressure with Star Entertainment Group (ASX: SGR), Strike Energy (ASX: STX), Red 5 (ASX: RED), and Ramelius Resources (ASX: RMS) facing challenges that limited the market’s overall gains.
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