Which shares excelled?

Coal stocks were one of the biggest movers yet again this week, with Coronado Global Resources (ASX: CRN), New Hope (ASX NHC), and Whitehaven Coal (ASX: WHC) headlining the ASX winners list. The sector has already been the top ASX trade in 2022, and this week the threat of a rail and haulage strike in the US provided further gains for local coal shares.

Although the US government has since struck a tentative agreement with union rail workers to avoid a shutdown, commodity prices spiked on the news given supply risks. At the same time, sentiment for coal stocks is also benefitting as third-party research groups call higher prices for longer due to the current energy crisis in Europe and shortfalls throughout Asia, including India, where coal inventory levels are at their lowest in nine years.

Making an impression on shareholders this week, mid-size biotech Neuren Pharmaceuticals (ASX: NEU) has put in a strong performance despite negative sentiment sweeping the market. 

This week the company announced that it has received priority review for a new drug application (NDA) of its trofinetide drug, which it is developing for the treatment of Rett syndrome. In March next year the FDA will make an assessment on the NDA, which if approved, triggers further milestone payments, product revenue, and net sales royalties as well.

Shareholders in AMP (ASX: AMP) have been able to breathe a sigh of relief this week as the company share price largely held up well. Although there has been no specific news tied to its robust performance this week, the company announced earlier this month it would launch a $350 million on-market share buyback, and it has since been active in doing so. It is likely this buying support has helped prop up the share price.

Gains for Leo Lithium (ASX: LLL) have largely been inspired by traders this week, with the stock defying the market selldown earlier in the week, and actually gaining strong ground to hit a new high as lithium prices remain at elevated levels. Momentum has been favouring the stock since late July when it unveiled a US$40 million debt facility agreement with its JV partner at the Goulamina Project, Ganfeng Lithium Co.

Meanwhile, Terracom (ASX: TER) and Calix (ASX: CLX) have both bucked the trend this week, despite no price-sensitive news emerging over recent trading sessions.

Which shares dragged on the market?

Ever the volatile name, lithium explorer Lake Resources (ASX: LKE) was hit with a wave of selling pressure this week as the growth stock became a central victim amid risk-off sentiment. While negative conditions in the market were a headwind for various growth stocks to contend with, Lake Resources was struck a blow when it disclosed to the market that it is in dispute with its key partner Lilac Solutions. 

The disagreement stems from a deal that allows Lilac to earn a stake up to 25% in the Kachi Project, where Lilac is required to produce at least 2,500kg of lithium carbonate equivalent and complete over 1,000 hours of operations at the site Pilot Unit. 

While the duo do not dispute those terms, they are in disagreement about the deadline to achieve such milestones, with Lilac arguing it has until the end of November, but Lake Resources claiming the deadline is due at the end of September. If Lilac does not fulfil its requirements by the relevant deadline, LKE would be afforded certain buyback rights across the stake of the project in question.

Elsewhere, shares in Link Administration (ASX: LNK) crumbled earlier this week as the company proposed acquisition by Dye & Durham encountered a major hurdle. Although the UK Financial Conduct Authority has given the green light for Dye & Durham to acquire one of Link and one of its key businesses, Link Fund Solutions, it has imposed a key obligation.

Dye & Durham must set aside over 300 million pounds in contingency funding in order to cover any shortfall arising from compensation that Link Fund Solutions may be obliged to pay due to its former management of the Woodford Equity Income Fund, which collapsed under its watch. This development has left the deal in limbo, but shareholders quickly marked down Link shares on the back of the uncertainty.

In other news, Neometals (ASX: NMT) has found itself casualty to concerns about weaker economic growth out of China this week, while Lynas Rare Earths (ASX: LYC) has been caught out by water supply issues at its plant in Malaysia. The latter has seen disruption to the water supply at its processing plant for some months now, and equipment failures incurred by its main supplier have only compounded and delayed a fix for the problem.

Among other key names, Megaport (ASX: MP1) resurgence at the front of the local tech centre has been cut back in dramatic fashion, with sentiment swinging suddenly when the Nasdaq recorded its worst daily performance in over two years this week.

Some of the other stocks struggling in a difficult week include property conveyancing platform Pexa Group (ASX: PXA), which is 42.8% owned by Link Administration mentioned above, as well as debt collection agency Credit Corp (ASX: CCP), and gold producer Silver Lake Resources (ASX: SLR), which has had to contend with sharply lower gold prices.

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