ASX ends lower; Arafura, lithium miners surge

The news: The Australian sharemarket ended lower ahead of the release of labour force data on Thursday that could give clues as to the direction of the Reserve Bank's next monetary policy decision.

The benchmark ASX 200 fell 0.22% to 8,213.20.

Biggest movers:

• Neuren Pharmaceuticals (-8.25%) — Was the worst performer across the ASX 200 after announcing its US partner Acadia Pharmaceuticals applied for approval to market its Rett syndrome treatment, trofinetide, in the European Union.
• Arafura Rare Earths (17.39%) — The government’s National Reconstruction Fund Corporation has agreed to a $200 million cornerstone investment in the Gina Rinehart-backed miner.
• Lithium miners — Liontown (7.41%) led a surge by lithium miners as Morgans analysts pointed to expectations of a market recovery. Pilbara Minerals (4.09%), Mineral Resources (2.74%), IGO (2.41%) and Arcadium Lithium (0.11%) also rose.

Other news:

• Baby Bunting (13.92%) — Posted an improved first-half profit and margin, and reaffirmed its full-year earnings guidance.
• Novonix (3.76%) — Has raised $32.3 million in a heavily-oversubscribed share purchase plan for eligible retail shareholders.
• Telstra (-1.23%) — Has agreed to a $700 million proposed joint venture with Accenture to accelerate the telco’s data and artificial intelligence roadmap.
• Yancoal (-1.34%) — Its chief executive David Moult has resigned after seven years at the coal miner.
• Fonterra (-5.69%) — Is set to delist from the ASX next month after receiving the nod from the bourse operator.
• Myer (-1.79%), Premier Investments (-1.57%) — An independent expert found the proposed deal for Myer to acquire Premier’s apparel brands was "fair and reasonable".

Analyst rating changes:

• Guzman y Gomez (4.36%) — UBS analysts upgraded the company to ‘neutral’ from ‘sell’ on increased confidence in sales growth and earnings margins.
• oOh!media (5.51%) — Macquarie upgraded its rating on the outdoor advertising company to ‘outperform’.
• Stockland (1.24%) — Morgan Stanley increased its price target on the stock, saying the property developer is "just scratching the surface" of unlocked earnings from its acquisition of 12 Lendlease communities projects in November.
• Telix Pharmaceuticals (0.52%) — Morningstar lifted its fair value estimate on the company but says the stock is overvalued.