Lithium miner Vulcan Energy jumped 26.8 per cent to $6.34 after announcing it has brought European automaking giant Stellantis on board as its second-largest shareholder. Stellantis snapped up an issue of €50 million ($76 million) worth of shares in Vulcan, giving it an 8 per cent stake.
Other lithium stocks also bounced; Liontown Resources added 10.8 per cent to 97.5¢, Pilbara Minerals climbed 8.8 per cent to $2.23 and Allkem firmed 4.7 per cent to $10.09.
“The market is still so volatile, and today’s moves seem to be investors looking at some of those beaten up stocks and asking if they’ve perhaps been hit too hard,” said Russel Chesler, head of investments and capital markets at VanEck.
The interest rate-sensitive technology sector rallied 6 per cent, tracking a strong lead from Wall Street where the Nasdaq climbed 1.6 per cent.
Resources retreat
Some of the companies worst hit by this year’s tech rout found a bid, but are still nursing heavy losses from the rotation away from riskier assets.
Zip jumped 21.6 per cent to 53.5¢, but is down nearly 90 per cent this year. Life360 advanced 24.9 per cent to $3.01, but has fallen almost 70 per cent year-to-date. Megaport rose 15.9 per cent to $5.60, but is also down about 70 per cent this year.
The energy sector was the day’s biggest laggard as concerns about a recession pushed oil prices lower. Brent crude has shed more than 10 per cent in the past fortnight because of fears of slowing demand.
Beach Energy dropped 2.5 per cent to $1.58, Santos fell 1.8 per cent to $7.22, and Woodside Energy tumbled 1.7 per cent to $30.61.
Copper prices dropped to a 16-month low, weighing on OZ Minerals which fell 2.1 per cent to $19.19.
The major miners also extended their decline despite a rebound in iron ore prices overnight; BHP fell 1.2 per cent to $40.02, and Rio Tinto declined 1.2 per cent to $101.40.
The major banks were mixed; NAB fell 0.4 per cent to $27.02, ANZ tumbled 0.7 per cent to $21.91, and Westpac declined 0.7 per cent to $19.48, while Commonwealth Bank added 0.5 per cent to $90.16.
Qantas dropped 1.6 per cent to $4.45 after saying it would be able to reduce net debt to $4 billion by the end of the month, meaning it has paid off $1.5 billion in the past half year.
Jetstar boss Gareth Evans said he would leave the low-cost airline next year and Qantas said it would peel off capacity in the 2023 financial year to cope with high fuel prices stemming from Russia’s war in Ukraine.
Betmakers soared 20 per cent to 36¢ after announcing it will conduct an on-market share buyback of as much as 10 per cent of the company.
