ASX lithium stocks are on fire after Allkem deal. Picture Getty
ASX Large Caps: Lithium stocks on fire after Allkem deal; Graincorp jumps 10pc on guidance upgrade
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- ASX lithium stocks rose after Allkem merger deal
- Graincorp jumped 8pc after upgrading its full-year guidance
- China’s producer prices have fallen deeper into deflation territory
The ASX was closed flattish on Thursday, with gains by lithium and tech stocks offset by losses in utility stocks.
Lithium stocks were on fire today after lithium majors Livent Corp (NYSE:LTHM) and Allkem (ASX:AKE) announced an all share ~$15bn merger. Allkem share price jumped as much as 18% before retreating to 13%.
The new company forecasts a combined production capacity of 248,000tpa LCE by 2027, setting them up to be the #3 global producer in the world behind ALB and SQM.
The news delivered a boost to other Argentina-based ASX lithium stocks, including Lake Resources (ASX:LKE) which rose by 13%.
Now read: Ground Breakers: Lithium M & A heats up as Allkem launches $15.8bn Livent merger
Graincorp (ASX:GNC) meanwhile rose 10% after upgrading its full-year guidance to between between $500m and $560m, up from its February forecast of $470m ~ $530m.
Graincorp says it’s shipping wheat and commodities to global markets as fast as it can to meet strong demand.
Huge food inflation in NZ
The Kiwis are having a hard time of it as New Zealand food inflation rose 12.5% year-on-year in April, the largest increase in 36 years – according to data released today.
Fruit and vegetable prices jumped by as much as 22.5%, while and meat, poultry and fish prices rose 9.5%.
Elsewhere, China’s consumer inflation rate has slowed to the weakest pace in two years in April.
Worryingly, the country’s producer prices have fallen deeper into deflation territory, reflecting slower domestic demand and softer commodity costs.
Asian markets declined after the release.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| AKE | Allkem Limited | 15.23 | 17.97 | 14,633,064 | $8,232,165,890 |
| GNC | GrainCorp Limited | 7.71 | 8.59 | 2,229,319 | $1,587,919,615 |
| CXO | Core Lithium | 1.11 | 8.58 | 35,578,697 | $1,895,687,130 |
| SYA | Sayona Mining Ltd | 0.21 | 6.25 | 73,110,314 | $1,819,750,627 |
| PLS | Pilbara Min Ltd | 4.82 | 5.93 | 43,240,787 | $13,641,728,996 |
| NIC | Nickel Industries | 0.96 | 3.78 | 13,349,795 | $2,797,437,978 |
| SEK | Seek Limited | 24.35 | 3.71 | 560,796 | $8,364,050,061 |
| TLX | Telix Pharmaceutical | 11.31 | 3.29 | 1,049,472 | $3,486,023,265 |
| WTC | Wisetech Global Ltd | 70.39 | 3.21 | 570,031 | $22,632,621,143 |
| LNK | Link Admin Hldg | 2.07 | 2.74 | 526,816 | $1,031,104,837 |
| LFG | Liberty Fin Group | 3.90 | 2.63 | 12,426 | $1,154,454,717 |
| APE | Eagers Automotive | 14.38 | 2.57 | 541,308 | $3,580,681,348 |
| ABC | Adbri Limited | 1.61 | 2.56 | 771,707 | $1,021,362,124 |
| INA | Ingenia Group | 4.42 | 2.55 | 878,945 | $1,756,683,868 |
| MIN | Mineral Resources. | 74.34 | 2.50 | 1,344,058 | $14,058,592,530 |
Core Lithium (ASX:CXO) jumped 9% on the Allkem news, and after announcing the first spodumene concentrate shipment was underway at the Darwin Port.
The shipment follows the approval from the Northern Territory Government for the BP33 underground project, the second proposed mine at the Finniss.
Commercial blasting systems company Orica (ASX:ORI) advanced 1% after statutory net profit for the half swung to profit of $122.6 million.
Westpac (ASX:WBC) fell 3% then rose 0.5% as it trades ex-dividend today.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| SLR | Silver Lake Resource | 1.08 | -4.22 | 5,860,657 | $1,045,962,375 |
| SQ2 | Block | 84.99 | -3.63 | 243,602 | $2,640,793,373 |
| RSG | Resolute Mining | 0.48 | -3.54 | 9,733,927 | $1,053,858,252 |
| IFT | Infratil Limited | 8.70 | -3.33 | 4,759 | $6,515,852,238 |
| MND | Monadelphous Group | 12.87 | -3.23 | 216,354 | $1,281,344,876 |
| NEU | Neuren Pharmaceut. | 13.32 | -3.13 | 297,511 | $1,740,278,045 |
| DEG | De Grey Mining | 1.49 | -3.09 | 2,110,236 | $2,396,391,215 |
| CSR | CSR Limited | 5.17 | -3.00 | 4,404,849 | $2,544,454,519 |
| MFG | Magellan Fin Grp Ltd | 8.28 | -2.93 | 331,787 | $1,547,614,098 |
| PDN | Paladin Energy Ltd | 0.69 | -2.82 | 8,283,449 | $2,115,890,431 |
| HLI | Helia Group Limited | 3.30 | -2.80 | 660,547 | $1,127,997,797 |
| WBC | Westpac Banking Corp | 21.10 | -2.77 | 7,650,049 | $76,146,970,032 |
| CMM | Capricorn Metals | 4.25 | -2.64 | 546,004 | $1,639,177,643 |
| CCP | Credit Corp Group | 16.60 | -2.47 | 133,943 | $1,158,497,889 |
| ASX | ASX Limited | 68.16 | -2.43 | 268,747 | $13,524,558,017 |
| LYC | Lynas Rare Earths | 7.39 | -2.38 | 4,112,517 | $7,068,983,161 |
Silver Lake Resources (ASX:SLR) fell 4% and Genesis Minerals (ASX:GMD) by -7% after SLR announced a lower bid for St Barbara’s Leonora assets in Western Australia.
SLR has revised its proposal to $707 million from $742m, citing concerns regarding conditionality, timing, and residual St Barbara liquidity. The proposal topped Genesis’ bid of around $642m.
Westfield owner Scentre Group (ASX:SCG) fell 0.5% after reconfirming its funds from operations guidance.
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