ASX ends higher as materials rally
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The news: The Australian sharemarket ended higher, with Rio Tinto’s $9.9 billion takeover of Arcadium Lithium exciting investors.
The numbers: The benchmark ASX 200 gained 0.44% to end at 8,223, with six out of 11 sectors finishing in green.
Materials was the winning sector, up 1.62%, as Arcadium Lithium rocketed 38.92% on Rio’s (1.51%) buyout of the company. Lithium stocks were buoyed by the deal. Liontown Resources (6.65%), Mineral Resources (6.76%), Pilbara Minerals (3.33%) and IGO (1.68%) all gained.
Gold miner Regis Resources reported an increase in cash due to higher prices and saw a 4.52% lift in its share price.
Fellow gold explorer De Grey Mining gained 1.1% after it paved the way for a 50% joint venture interest in its Egina gold project’s site’s tenements by reaching its $7 million spending commitment.
Among financials, Netwealth posted record inflows during the September quarter and announced a $2.5 million acquisition of digital content and mobile app Flux Corp, triggering a 4.17% share price lift.
In other news, Australian Vintage has rehired its previously terminated chief executive Craig Garvin after the board reviewed the circumstances and processes surrounding his departure. The stock ended 3.23% higher.
DroneShield shares fell 3.83% after broker Bell Potter downgraded the company from ‘buy’ to ‘hold’.
Graincorp shares dropped 1.75% after Bell Potter downgraded its recommendation on the agriculture group to ‘hold’ from ‘buy’ due to an increased risk to southeastern production forecasts following a frost event.
Guzman y Gomez posted US performance that came in lower than analyst expectations, resulting in the stock dropping 0.13%.
The Australian dollar is buying 67.33 US cents.
The context: Tonight will see Reserve Bank assistant governor (economic) Sarah Hunter speak on a panel at Macquarie University.
The latest US CPI and unemployment claims data will also be released tonight.
