Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) is having another bumpy day of returns so far this Thursday. At the time of writing, the ASX 200 is currently up by a modest 0.14% at 7,410 points after both dipping and rising over the trading day so far.

But rather than trying to decipher those machinations, let’s instead check out the ASX 200 shares that are currently topping the trading volume charts today, according to investing.com.

3 most active ASX 200 shares by volume on Thursday

Telstra Corporation Ltd (ASX: TLS)

ASX 200 telco Telstra is our first share worth checking out today. So far, Telstra has seen a chunky 13.88 million of its shares change hands. With no developments out of this telco so far, we can probably put this high volume down to the volatility we have seen with Telstra today.

The company is currently up by 0.12% at $4.08 a share (right below its new 52-week high of $4.09), but dipped as low as $4.04 earlier this morning. It’s this bouncing around that’s probably behind this elevated trading volume, perhaps in conjunction with the regular share buybacks the telco has been doing of late.

Pilbara Minerals Ltd (ASX: PLS)

From TLS to PLS! Pilbara Minerals is our next share up this Thursday. This ASX 200 lithium producer has seen a sizeable 14.2 million shares find a new home today. Again, this seems to just boil down to the actions of this company’s share price itself. Pilbara is currently up a healthy 2.57% at $3.60 a share after hitting a new all-time high of $2.62 this morning. This is the likely reason why we are seeing the company appear on this list.

EML Payments Ltd (ASX: EML)

ASX 200 payments company EML is our final and most traded share this Thursday, with a whopping 16.4 million shares bought and sold so far. We don’t have to look too far for a smoking gun here. This high volume is almost certainly due to the gigantic jump the EML share price has taken today.

EML shares are presently up a very pleasing 28.4% at $3.55 after the company got a green light from the Irish Central Bank to continue its operations after it previously flagged some concerns. No doubt there will be some very relieved investors out there!

The post These 3 ASX 200 shares are topping the volume charts this Thursday appeared first on The Motley Fool Australia.

More reading

• Why Adairs, EML, Fisher & Paykel Healthcare, and NRW are storming higher
• ASX 200 (ASX:XJO) midday update: EML rockets, NAB given ACCC green light
• EML (ASX:EML) share price rockets 17% on new programs green light from regulator
• These are the biggest opportunities on the ASX in 2022: fund manager
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments and Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In late afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the day with a small gain. The benchmark index is currently up 0.1% to 7,405.1 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Creso Pharma Ltd (ASX: CPH)

The Creso Pharma share price is down 4% to 9.6 cents. This morning the cannabis company revealed that it was served with a notice by ASIC requiring it to produce certain documents in connection with an investigation. This “includes suspected contraventions by the Company, its officers, agents, employees and representatives in relation to trading in its securities.”

Hansen Technologies Limited (ASX: HSN)

The Hansen share price is down 4% to $5.73. This follows the release of the billing technology company’s annual general meeting update. That update reveals that the company is on track for a marginal improvement in operating revenue in FY 2022 excluding the Telefonica contract.

Life360 Inc (ASX: 360)

The Life360 share price is down 9% to $12.30 following the completion of the institutional component of its fully underwritten A$280 million capital raising. Life360 raised the funds at $12.00 per new share, which represents an 11.1% discount to its last close price. These funds are to be used to acquire items tracking company Tile for a purchase price of up to US$205 million. Management notes that the combination of Life360 and Tile creates an integrated market leader in location solutions for all life stages. This enables a seamless experience for families that integrates people, pets and things.

Serko Ltd (ASX: SKO)

The Serko share price is down 11.5% to $6.56. This follows the completion of the travel booking technology company’s NZ$75 million placement. According to the release, the placement was fully subscribed at NZ$7.05 per share, representing a 10.2% discount to its last close price. These funds will be used to support the company’s growth. This includes its global marketplace strategy, which is aiming to transform Serko from an online booking tool into a distributed marketplace.

The post Why Creso Pharma, Hansen, Life360, and Serko shares are falling appeared first on The Motley Fool Australia.

More reading

• Creso Pharma (ASX:CPH) share price down 7% as chair stands aside amid ASIC probe
• Here’s why the Serko (ASX:SKO) share price is crashing 10% lower today
• Why the Life360 (ASX:360) share price is sinking 9% today
• Serko (ASX:SKO) share price halted amid H1 FY22 results and cap raise
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Hansen Technologies, Life360, Inc., and Serko Ltd. The Motley Fool Australia has recommended Serko Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Santos Ltd (ASX: STO) share price is struggling today. Shares in the S&P/ASX 200 Index (ASX: XJO) energy company are down 1% in afternoon trade to $6.82 per share.

This comes amid steady crude oil prices (Brent crude is at US$82.32 per barrel, up 10 US cents overnight). And the Santos share price is slipping despite its mega-merger with fellow ASX 200 energy share Oil Search Ltd (ASX: OSH) edging another step closer.

Santos share price in red

Investors aren’t bidding up the Santos share price today despite news that the 4 major proxy advisers now recommend Oil Search shareholders vote in favour of the merger at the extraordinary shareholders meeting on 7 December.

According to the Australian Financial Review, “CGI Glass Lewis has joined Institutional Shareholder Services (ISS), Ownership Matters and the Australian Council of Superannuation Investors in advising Oil Search shareholders to back the deal…”

For the merger to go through on 10 December, as both the Santos and Oil Search boards hope, 75% of shareholders will need to back the deal. The merger also faces a final hurdle from Papua New Guinea’s National Court, which is expected to make its final determination on 9 December.

What are the reservations about the merger?

As the Motley Fool reported on 11 November, independent expert Grant Samuel reached the conclusion that the merger “is in the best interests of Oil Search shareholders in the absence of a superior proposal”.

The Santos share price dropped 2% on the day.

The report, based on Samuel’s findings, did note the following reservation:

Oil Search shareholders should note that, in its report, the independent expert has made an assessment of the underlying value of each of Oil Search and Santos and, on the basis of its view of those relative underlying values, has suggested that Oil Search shareholders are contributing a greater proportion to the underlying value of the merged group than the 38.5% which they will receive under the terms of the merger.

The report went on to state that:

However, the independent expert also notes the strategic, commercial and funding benefits of the merger, and has ultimately concluded that Oil Search shareholders are likely to be better off if the merger proceeds than if it does not.

This same reservation is what led ISS to qualify its own positive recommendation. Noting there were no superior offers at hand, ISS said (quoted by the AFR):

The qualification is to highlight concerns that a key reason provided in the scheme booklet for voting against the transactions is that OSH shareholders may take the view that the merger ratio implied by the scheme consideration does not reflect the underlying value of the contribution of OSH to the merged group.

Santos share price snapshot

The Santos share price is up 6% in 2021, trailing the 11% year-to-date gains posted by the ASX 200 during this same period.

Over the past month, Santos shares have lost around 6%.

The post Santos (ASX:STO) share price dips despite progress on $21 billion merger appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Biden taps oil reserve. What could this mean for ASX oil shares?
• Here’s why the Oil Search (ASX:OSH) share price is slipping today
• Why is the Santos (ASX:STO) share price falling on Monday?
• 5 things to watch on the ASX 200 on Monday

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 Bruce Jackson.

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This week so far has been a big one for Nickel Mines Ltd (ASX: NIC) and its share price.

The company’s stock has been gaining since it announced it had signed a memorandum of understanding with Shanghai Decent Investment Group on Monday. The agreement will see the pair creating a framework for their future collaborations.

At the time of writing, the Nickel Mines share price is $1.37, 4.18% higher than its previous close. It has also soared 15.2% so far this week.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.1% today and 0.5% in the past week.

Let’s take a closer look at this week’s news from the nickel producer.

Nickel Mines share price soars on partnership news

The Nickel Mines share price is roaring upwards this week after it agreed to expand its partnership with Shanghai Decent over the coming years.

The understanding is multifaceted and will see Nickel Mines acquiring a 70% interest in Shanghai Decent’s Oracle Nickel Project.

The project comprises 4 next-generation rotary kiln electric furnace lines, currently under construction in the Indonesia Morowali Industrial Park.

The Oracle Nickel Project company will separately undertake the construction of a 380-megawatt captive power plant. The plant will support the project’s rotary kiln electric furnace lines and the Indonesia Morowali Industrial Park’s overall power requirements.

Nickel Mines will pay US$371 million for the acquisition. It will also provide US$154 million of construction funding through 3 shareholder loans.

The acquisition is subject to shareholder approval.

The companies will also establish a ‘future energy’ collaboration framework. The framework will optimise Nickel Mines’ operations’ transition to renewable energy.

The collaboration could see the companies both contributing to fund a solar power plant at the Indonesia Morowali Industrial Park, or a combined-cycle gas turbine power plant.

Finally, under the agreement, the companies will look into the feasibility of jointly developing and funding future high-pressure acid leach projects.

The projects could use Nickel Mines’ current and prospective resources across Indonesia to produce battery grade nickel for the electric vehicle market, further diversifying the company’s operations.

The post Here’s why the Nickel Mines (ASX:NIC) share price is soaring 15% so far this week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts on Monday
• ASX 200 (ASX:XJO) midday update: Lithium miners jump, Flight Centre tumbles
• These were the best performing ASX 200 shares last week
• Here are the top 10 ASX shares today

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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On Wednesday, we looked at three ASX shares that brokers have given buy ratings to this week.

On the flip side, today we look at a few shares that have just been given sell ratings by brokers. Here’s why they are bearish on these ASX shares:

Charter Hall Retail REIT (ASX: CQR)

According to a note out of Morgan Stanley, its analysts have downgraded this REIT’s shares to an underweight rating with a $4.05 price target. The broker made the move on the belief that smaller Australian retail REITs with regional exposure could underperform in the next 12 to 18 months. This is based on the normalisation of trade post-COVID and the softening of regional migration growth as people return to urban areas. The Charter Hall Retail REIT share price is trading at $4.29 on Thursday.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Citi reveals that its analysts have retained their sell rating and $94.50 price target on this banking giant’s shares. The broker believes CBA’s shares are fully value given slowing growth in mortgage lending and strong competition. Citi also believes the bank’s expenses will increase quicker than income and notes that its weak position in business banking means it will miss out on stronger trading conditions at that side of banking. The CBA share price is trading at $96.03 today.

TechnologyOne Ltd (ASX: TNE)

Analysts at Macquarie have downgraded this enterprise software company’s shares to an underperform rating but with an improved price target of $11.00. This follows the release of the company’s full year results. While the broker has increased its earnings estimates for the coming years, it isn’t enough for a more positive rating. Macquarie believes TechnologyOne’s shares are expensive in comparison to peers. The TechnologyOne share price is fetching $11.92 on Thursday.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• Macquarie (ASX:MQG) is now a big four bank
• Why Bapcor, Mayne Pharma, Race Oncology, and TechnologyOne shares are sinking
• Why is the Technology One (ASX:TNE) share price tumbling 9% today?
• Is the TechnologyOne (ASX:TNE) share price a buy after its results?
• Is the CBA (ASX:CBA) share price premium relative to other big banks justified?

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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The Global Lithium Resources Ltd (ASX: GL1) share price is continuing to decline today. This comes amid the company announcing positive lithium assay results.

At the time of writing, the lithium explorer’s shares are swapping hands for 60 cents apiece, down 6.98%. This means that over the last two days, its shares have fallen by around 13%, almost erasing the 15% gains made on Tuesday.

Global Lithium points to significant extension opportunity

The Global Lithium share price is sinking today after accelerating in value by more than 40% in the past month alone.

In this morning’s release, Global Lithium announced it has received significant lithium assay results from its ongoing CY4Q Exploration Program at the Marble Bar Lithium Project (MBLP).

The site is located around 150 kilometres southeast of Port Hedland in the Pilbara Region of Western Australia. MBLP is situated close to major roads, with direct links into Port Hedland for shipping bulk commodities, including spodumene concentrate.

Global Lithium has a 100% controlling interest in MBLP.

The first 14 reverse circulation (RC) holes, totalling 1,770 metres of drilling, returned strong spodumene lithium results. This highlights multiple lithium intersections lay within MBLP and validates potentially developing the area and extending the Archer deposit.

The assay results included the following:

• 14 metres at 1.14% of lithium oxide (Li2O) and 44 parts per million (ppm) of tantalum pentoxide (Ta2O5) from 11 metres in drillhole MBRC0181;
• 8 metres at 0.97% Li2O and 53 ppm Ta2O5 from 51 metres in drillhole MBRC0182;
• 12 metres at 0.64% Li2O and 50ppm Ta2O5 from 54 metres in drillhole MBRC0177; and
• 4 metres at 1.55% Li2O and 70ppm Ta2O5 from 37 metres in drillhole MBRC0174.

The company noted the CY4Q RC drilling program has completed 74 holes for 7,995 metres to 23 November. The majority of samples that have been sent to the laboratory are yet to be assayed.

RC drilling is planned to run until early December, with the remaining assays expected in the first quarter of 2022.

What did management say?

Global Lithium managing director Jamie Wright commented:

Our drilling earlier in 2021 and our subsequent targeting all suggested that the Marble Bar Road reserve offered significant exploration potential. We have been excited by what we have been seeing in this area and these initial assays clearly demonstrate the growth potential of the MBLP.

Whilst only a small portion of assays have been received to date, the results we are seeing are very encouraging. The initial assay results, combined with the discovery of a new pegmatite zone within the road reserve so close to Archer, certainly highlights the underexplored nature of the MBLP.

Global Lithium share price summary

Despite falling the last two days, Global Lithium shares have surged around 200% since listing on the ASX in May.

Its shares reached an all-time high of 81 cents earlier this month, before treading lower in the last few weeks.

Global Lithium presides a market capitalisation of roughly $64.16 million and has more than 108.75 million shares on its books.

The post Here’s why the Global Lithium (ASX:GL1) share price is falling 7% today appeared first on The Motley Fool Australia.

More reading

• Global Lithium (ASX:GL1) share price explodes 34% higher on capital raising update
• Here’s why the Global Lithium (ASX:GL1) share price rocketed 15% before a trading halt

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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Shares in Creso Pharma Ltd (ASX: CPH) continue to take a battering today. At the time of writing, shares in the cannabinoid company are down 7% at 9.3 cents, having come off a 3-month high of 15 cents just 2 weeks earlier.

Investors are punishing Creso on the back of its chairman’s probe from ASIC. Today the company notes that on 22 November 2021, it was served with a notice by ASIC requiring it to produce certain documents in connection with an investigation.

Just a week earlier, when the scandal unfolded, Creso advised that it hadn’t been served any papers from ASIC at the time.

Let’s see what’s changed.

What’s Creso Pharma caught up in?

The watchdog’s notice “identified for the first time that ASIC’s investigation includes suspected contraventions by the Company, its officers, agents, employees and representatives in relation to trading in its securities”, Creso says.

Creso stresses that “it should not be construed as an indication by ASIC that a contravention of the law has occurred, nor should it be considered a reflection upon any person or entity”, as reported by ASIC itself.

The company became involved in ASIC’s investigation because of “common directorships” of its chairman Adam Blumenthal, who is also a director at EverBlu Capital.

Blumenthal has today stood aside from his role as chairman of Creso Pharma, to distance its “operations and governance from the ASIC investigation”.

Another executive director, Dr James Ellingford, will jump in as interim chairman of the company until a solution is arrived at. The board has also has established a standalone subcommittee to help assist with the investigation.

Investors continue driving in the pain following the announcement, with the selling pressure on Creso’s share price occurring at a volume of 90% of its 4-week trading volume.

What’s the impact going forward?

According to Creso, not much. It reckons it has taken the necessary steps to comply with the matter and has offered its assistance in the investigation.

Hence, it is business as usual for the cannabinoid player, according to the release. Commenting specifically on its impact, the company added:

Importantly, the existence of the ASIC investigation does not impact on Creso Pharma’s ability to continue to operate efficiently. The Company notes that its key business operations in Canada and Switzerland are each managed by in-country senior executives who have been quarantined from this matter and, as such, those operations remain unaffected and are operating as usual. The Company appreciates and is grateful for the continued support of all of its stakeholders.

Investors have been leaving the Creso Pharma party for the last 2 weeks since the news was announced. In the last week alone, shares have lost another 15%, and are now down 48% since January 1.

Despite the turbulence, Creso shares are still up 200% for the year.

The post Creso Pharma (ASX:CPH) share price down 7% as chair stands aside amid ASIC probe appeared first on The Motley Fool Australia.

More reading

• Why the Creso Pharma (ASX:CPH) share price is down 29% this week
• Creso Pharma (ASX:CPH) share price down 6% after speeding ticket
• Why the Creso Pharma (ASX:CPH) share price fell 9% before freezing
• Creso Pharma (ASX:CPH) share price climbs on increasing revenue update
• These were the best performing ASX cannabis shares in October

The author has no positions 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 Bruce Jackson.

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The South32 Ltd (ASX: S32) share price is edging higher on Thursday following its latest update.

In afternoon trade, shares in the diversified mining and metals company are up 0.98% to $3.59 apiece. This comes after a positive step forward in the company’s endeavours to acquire a 45% stake in the Sierra Gorda copper mine in Chile.

Let’s take a look at what it means for the ASX-listed mining giant.

Copper go-ahead gives South32 share price a push

Investors are snapping up shares in Australia’s sixth-largest listed mining company today. The enthusiasm likely stems from South32’s Sierra Gorda transaction update released to the market this morning.

According to the release, KGHM Polska Miedz (KGHM) has advised it will not exercise its pre-emptive rights to increase its shareholding in the Sierra Gorda mine.

KGHM is a Polish mining company that owns the other 55% portion of Sierra Gorda. The decision means South32 can proceed with acquiring its full 45% stake as originally intended. In turn, investors are looking upon the South32 share price fondly today.

Furthermore, South32 expects completion of the transaction to occur early in the 2022 calendar year. As per the original announcement, the copper mine acquisition comes with a price tag of US$1.55 billion (A$2.15 billion). Another US$500 million will be made available dependent on copper production rates between 2022 and 2025.

The acquisition comes at an opportune time, with experts forecasting long-term copper supply constraints. For reference, Sierra Gorda is expected to produce 180kt of copper in 2021 on a 100% basis, alongside other metals.

Analysts’ take

South32’s expansion into copper, further diversifying its operations, has caught the eye of analysts. For instance, analysts at Goldman Sachs are bullish on the company and its potential to generate significant free cash flow in the future.

Currently, the broker holds a conviction ‘buy’ rating and a $4.40 price target on the South32 share price.

The post South32 (ASX:S32) share price climbs as $2bn copper mine stake gets green light appeared first on The Motley Fool Australia.

More reading

• Investing for the future: why this fundie is optimistic on copper shares
• Why these ASX 200 shares could be strong buys
• These 3 ASX 200 shares are topping the volume charts this Friday
• 4 reasons the South32 (ASX:S32) share price could be a strong buy
• These 3 ASX 200 shares topped the volume charts on Thursday

Motley Fool contributor Mitchell Lawler 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 Bruce Jackson.

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The Piedmont Lithium Inc (ASX: PLL) share price has been volatile over the last 7 days, ultimately falling around 3% lower.

Additionally, despite all its ups and downs, the company’s stock is seemingly trending sideways. It has only gained 3% over the past month and just 1.5% over the past 6 months.

At the time of writing, the Piedmont Lithium share price is 82.2 cents, 0.96% lower than its previous closing price.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.06%, while the All Ordinaries Index (ASX: XAO) is flat.

Let’s take a look at all the news released by the United States-based lithium business over the last few months.

What’s driven the Piedmont Lithium share price lately?

The latest news to boost Piedmont Lithium’s stock’s value was released on 22 October.

Then, the company announced it had upped its Carolina Lithium Project’s mineral resource estimate to 44.2 tonnes at 1.08% lithium oxide. Some 64% of the total mineral resource estimate was in the project’s ‘indicated’ category.

Despite the seemingly positive news, the Piedmont Lithium share price slid 1.2% on the back of the update.

The market has also been treated to news of the acquisition of the North American Lithium mine. Sayona Quebec – which is 25% owned by Piedmont Lithium and 75% by Sayona Mining Ltd (ASX: SYA) – acquired North American Lithium on 30 August.

On 13 September, Sayona Mining announced it’s eyeing a potential resource increase at North America Lithium.

The announcements saw Piedmont Lithium’s stock boosted 8% and 1.3% respectively.

The final news the market has heard from Piedmont Lithium in the last few months was released on 1 September. Then, Piedmont announced it had acquired a 9.9% hold in IronRidge Resources Ltd.

The investment follows numerous agreements that could see Piedmont Lithium with a 50% hold in IronRidge’s lithium portfolio and 50% of the production of IronRidge’s Ewoyaa Project.

The market responded poorly to Piedmont Lithium’s investment, bidding its share price 1.2% lower.

Despite a tough 6 months, Peidmont’s stock is still 123% higher than it was at the start of 2021.

The post Why is the Piedmont Lithium (ASX:PLL) share price struggling of late? appeared first on The Motley Fool Australia.

More reading

• Why ASX lithium shares are surging higher on Tuesday

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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The All Ordinaries Index (ASX: XAO) is having a rather bumpy day so far this Thursday. At the time of writing, the All Ords is up by 0.02% to 7,727 points after stints in both positive and negative territory today. But one All Ords ASX share is putting the index to shame so far today. That would be the Novonix Ltd (ASX: NVX) share price. 

Novonix shares are currently up a very pleasing 11.57% to $10.70 apiece. Not only that, they hit $10.74 earlier this morning, which is a new all-time high for this company.

So what’s going on with Novonix today that could be eliciting this excitement?

Well, unfortunately, it’s not quite clear. There have been no price-sensitive announcements out of Novonix recently. The company did release a statement yesterday morning during intra-day trading. This outlined Novonix’s opening of a new facility in Chattanooga, in the US state of Tennessee. The company said this new facility would “produce the high purity and high consistency anode material required for long-life batteries, specifically for electric vehicles and similar storage application”.

But seeing as this news became public yesterday, it’s a long bow to link it to today’s share price moves. In fact, Novonix shares dipped close to 1% yesterday by market close.

Novonix share price shoots the moon

So let’s look at how Novonix’s sector peers are performing today so far.

Novonix is an ASX materials share. The company is a developer and supplier of materials, services, and equipment for the lithium-ion battery industry. We are seeing other players in the battery and lithium spaces also enjoying some outsized gains today.

For instance, lithium producers Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) are also enjoying strong performances. Pilbara shares are up a healthy 3.36% at $2.62 apiece at the time of writing (a new all-time high). And Orocobre shares are up a more modest 1.44% at $9.84.

But another thing to remember is that this move, while certainly dramatic, isn’t exactly out of character for Novonix. This is a company that is now up 66% in just the past month and up an extraordinary 763% year to date.

As my Fool colleague Brooke covered earlier in the month, the catalyst for these longer gains appears to be the company’s most recent quarterly activities and cash-flow update. As well as news that the US company Phillips 66 (NYSE: PSX) had made a strategic investment in Novonix.

Today’s moves could well be an extension of this recent run of stellar investor sentiment. Or perhaps a large or institutional investor has made an investment. Whatever the reason, today’s moves are just the latest feather in the Novonix share price cap, it seems.

At the current Novonix share price, this company has a market capitalisation of $4.62 billion.

The post Why is the Novonix (ASX:NVX) share price surging 11% to an all-time high today? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• The Novonix (ASX:NVX) share price tumbled 14% today. What’s going on?
• Up 64% in a month, here’s why the Novonix (ASX:NVX) share price is supercharging right now
• Here are the top 10 ASX shares today
• The market had a lousy day. So why did the Novonix (ASX: NVX) share price leap 4%?

Motley Fool contributor Sebastian Bowen 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 Bruce Jackson.

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