These three ASX lithium shares defied Wednesday’s selloff

Three ASX lithium shares outperformed the selloff seen in the materials sector and the broader market on Wednesday.

The S&P/ASX 200 Materials Index (ASX: XMJ) closed the day 2.64% lower while the S&P/ASX 200 Index (ASX: XJO) finished down 1.56%.

Most of these companies have made significant announcements amid their shares becoming buoyant over the past week.

Let’s cover which companies defied the market today.

Argosy Minerals Limited (ASX: AGY)

The Argosy Minerals share price closed 9.26% higher today. Although the company made no announcements today, or even recently, the Fool put the spotlight on the company earlier this month.

Argosy Minerals was included in a roundup of companies involved in graphite production, an emerging rival to lithium for its role in creating batteries. The company’s graphite production at its site in Namibia is currently stalled, pending review and funding opportunities.

Then on 5 September, the Fool reported Argosy Minerals made it into the S&P/ASX 300 Index (ASX: XKO) due to changes in the company’s market capitalisation.

Pilbara Minerals Ltd (ASX: PLS)

Pilbara’s share price ended the day 1.02% ahead. There were no company announcements on Wednesday but yesterday, Macquarie analysts retained Pilbara’s outperform rating. They nominated a $5.60 price target for its shares, an appreciable 12.9% upside.

The impetus for Macquarie holding Pilbara’s outperform rating was said to be positive results posted from its battery metals exchange (BMX) auction. In September, Pilbara accepted a bid of US$6,988 per dry metric tonne for its lithium. That’s well up from the US$6,188 per dry metric tonne offer it received in July.

My Fool colleague James notes “this strong pricing appears to demonstrate that the insatiable demand for lithium is not cooling despite concerns about the potential for a global recession in the coming months”.

EV Resources Ltd (ASX: EVR)

Finally, the EV Resources share price finished flat today after carrying gains of 3.57% for most of the day. Shares lifted amid the company reporting it has discovered high-grade samples from its Christina tin-tungsten project in central Morocco.

On 8 September, it announced it had found high-grade lithium samples at its Austrian lithium projects. The samples taken reportedly tested for up to a 3.24% purity of lithium oxide.

EV Resources also has another horse in the race for lithium with a memorandum of understanding signed with Yahua International Investment and Development to supply spodumene concentrate.

The post These three ASX lithium shares defied Wednesday’s selloff appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Top brokers name 3 ASX shares to buy today
• Pilbara Minerals share price hits record high following lithium auction
• Pilbara Minerals share price on watch following BMX lithium auction
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/WVK6Zbr