Good Afternoon and Welcome to Market Close for Tuesday 21st of October, I’m Jon Davidson. It has been said many times before that when you get down to the world of small junior explorers on the ASX, you’re almost entirely in a different share market.
Indeed, I’ve said many times on the HotCopper Wire podcast, which goes live on Thursdays now by the way, that we may as well whack them all into a second index called the ASXV per Toronto. But that would be to ignore the reality all those stuffy sophisticated investors who pretend speccies are below them love to gamble them too.
So whether you were in delight or despair today really counted on whether you picked the right rare earths and gold companies after Canberra and Washington struck a multibillion dollar critical mineral deal overnight with a surprising amount of formality and little hiccup, despite the fact Albanese thought it would be wise to bring Kevin Rudd along for some reason.
Now the big question is what happens next, and do the stocks beneficiaries of today’s move re-rate in a sustainable way? Time will tell. On the other hand, looking at the XJO broadly, we could be at the start of an early Santa Rally. Wouldn’t that be nice?
Looking at sectors: materials in the lead in the early moments of the final hour, up 1.8%; nearly all sectors green except for real state and leading laggard staples down a half of a percent.
Turning to companies in the green,
Latrobe Magnesium one of the more unexpected winners from the Trump-Albanese meeting overnight, key to that win there is the fact America doesn’t have a primary producer for the metal.
Larvotto climbing once again after hitting more gold and antimony on-site its NSW project, only a day after receiving a takeover offer from a US company that valued it at $1.40 a share; so far, the share price hasn’t quite climbed to reach that.
Alcoa corporation meanwhile jumping as it was directly namedropped in the Albanese-Trump meeting, as well as a handful of other stocks dealing with different minerals.
And so what about the reds?
Dateline Resources appears to have missed out on the rare earths supports other companies won today, even after Trump specifically named the company on Truth Social earlier this year, which originally saw it shoot up.
Lynas Rare Earths meanwhile, a company that actually produces rare earths instead of being pre-development, also lost out falling some -7% as the Albo-Trump meeting appears to have left old Lynas out.
FInally, European Lithium fell for a second day as the market appears to have realised it got a bit excited when it sold a bunch of shares in another company last week. Perhaps traders remembered to double check lithium prices.
That’s Market Close for Tuesday, I’m Jon Davidson, have a great night and we’ll see you tomorrow.