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ASX Large Caps: Pilbara auction shows lithium price may have peaked, drags mining shares lower

Lithium stocks dragged the ASX lower today Inflation expectations fall in Australia Aussie unemployment steady at 3.4%   Lithium miners … Read More
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  • Lithium stocks dragged the ASX lower today
  • Inflation expectations fall in Australia
  • Aussie unemployment steady at 3.4%

 

Lithium miners dragged the mining sector lower today as the latest auction on BMX exchange suggests that spodumene prices may have peaked.

At the close of Thursday, the ASX Mining Index (XMJ) was down 1.5%, while the broad benchmark ASX 200 fell 0.5%.

Earlier today, Pilbara Minerals (ASX:PLS) said that it accepted an auction price of US$7,552/t for 10k tonnes of spodumene concentrate, a 3% fall from November.

Shares in Pilbara plunged 11%, sparking a selloff in other lithium names.

An overreaction? Maybe.

Meanwhile, the ABS said that Australia’s unemployment rate in November was 3.4%, the same as October.

The rate remains at near 50-year low as the economy faces labor shortages due to a significant reduction in migration.

The Melbourne Institute released its December inflation expectations report, putting it at 5.2%. This is a big decline from the 6% the previous month.

Elsewhere, data shows that China’s economic activity worsened in November.

Chinese industrial output growth slowed to 2.2% from 5% a month ago, while retail sales dropped 5.9% in November from a year ago.

Meanwhile, Elon Musk has reportedly sold around $US3.58 billion worth of Tesla shares, according to a SEC filing seen by Bloomberg.

Musk sold at least 22 million shares. The Tesla share price slumped 2.5% overnight.

And ASIC has begun its legal proceedings against Finder for its crypto product, Finder Earn.

ASIC Deputy Chair Sarah Court said, “This is ASIC’s third recent action against a firm offering a crypto-asset related product that we consider to be a financial product.”

“Our message to industry is clear – just because an offer involves a crypto-asset related product does not guarantee it will fall outside the current regulatory regime.”

Looking ahead to tonight’s session, the BoE and ECB are expected to release their monetary policy statements.

Both are expected to increase their rates by around half a percent, in line with the Fed’s decision overnight.

 

BIG CAP WINNERS

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Security Description Last % Volume MktCap
NHC New Hope Corporation 6.12 5.52 5,701,730 $5,115,814,368
WHC Whitehaven Coal 10.26 4.48 8,323,607 $8,857,613,103
DTL Data#3 Limited 6.85 4.10 108,517 $1,017,262,631
EBO Ebos Group Ltd 40.50 3.34 70,817 $7,471,095,186
APM APM Human Services 2.53 3.27 24,076,391 $2,247,095,768
ELD Elders Limited 10.36 2.98 718,989 $1,574,154,334
EDV Endeavour 6.60 2.96 13,283,595 $11,480,181,909
VEA Viva Energy Group 2.71 2.85 2,407,202 $4,075,552,450
FPH Fisher & Paykel H. 21.79 2.64 545,768 $12,264,349,295
DDR Dicker Data Limited 10.57 2.62 165,675 $1,854,942,728
OCL Objective Corp 14.09 2.40 119,043 $1,308,192,344
IVC InvoCare Limited 11.56 2.21 260,514 $1,629,326,890
AGL AGL Energy Limited. 8.09 2.15 1,402,204 $5,328,158,085

Coal stocks like New Hope (ASX:NHC) and Whitehaven Coal (ASX:WHC) were the best performing today.

APM Human Services (ASX:APM) rose 4% after announcing the expansion of its Allied Health service offering through the acquisition of Everyday Independence.

APM says the initial purchase price was $52.5 million, and the acquisition is EPS accretive in year 1.

 

BIG CAP LOSERS

Swipe or scroll to reveal the full table. Click headings to sort.

Security Description Last % Volume MktCap
PLS Pilbara Min Ltd 4.025 -11.54 67,502,437 $13,640,266,012
CXO Core Lithium 1.065 -8.58 48,689,493 $2,141,642,123
LTR Liontown Resources 1.595 -7.00 16,827,114 $3,766,886,625
SYA Sayona Mining Ltd 0.205 -6.82 35,869,806 $1,910,486,938
SYR Syrah Resources 2.28 -6.17 2,834,606 $1,629,486,825
MP1 Megaport Limited 6.94 -5.45 1,106,138 $1,160,931,944
MIN Mineral Resources. 81.33 -5.44 1,124,352 $16,323,003,603
AKE Allkem Limited 12.4 -5.42 6,162,019 $8,359,697,507
IGO IGO Limited 14.28 -4.61 4,133,525 $11,336,299,161
BRG Breville Group Ltd 18.8 -4.57 657,804 $2,812,792,891
NIC Nickel Industries 0.985 -4.37 4,161,133 $2,813,211,702
29M 29Metalslimited 2.54 -3.79 1,180,467 $1,270,780,101
GOR Gold Road Res Ltd 1.6725 -3.60 3,003,205 $1,866,742,537

Lithium stocks fell across the board including Core Lithium (ASX:CXO), Liontown (ASX:LTR), Allkem (ASX:AKE) and IGO (ASX:IGO).

The post ASX Large Caps: Pilbara auction shows lithium price may have peaked, drags mining shares lower appeared first on Stockhead.

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