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Good Afternoon and welcome to HotCopper’s Market Close for Tuesday 7th of October, I’m Jon Davidson. We’re into a new month but the September sell-off appears to have stuck: the XJO was down a third of a percent in the final hour with materials scraping through green, every other sector in the red led by telcos.
Still, there are opportunities out there if you’re a swing trader on popular names like Brainchip and Star Entertainment or an investor in gold explorers, or defence juniors, or rare earths juniors operating in the US. It’s not all bad.
Still, it would be nice to see the bourse climb back over 9,000 points – to that end, US futures flattish red just past 3pm Eastern; ASX futures doing the same.
At any rate, to companies in the green:
Tamboran Resources, now drilling for gas in the NT’s Beetaloo Basin, continued its recent run up another 14% to 24cps after hitting a positive FID on what could be Australia’s next big gasfield.
Elsewhere, smallcap lithium player Ioneer jumped on no news but presumably lifted by recent moves from the US government to potentially buy a stake in a lithium miner after it did the same for MP Materials earlier this year. It’s worth noting the CEO of MP Materials is a fairly enthusiastic Republican donor, do with that information what you will.
Finally, Bougainville Copper continues to climb after a recent major court case was thrown out in Papua New Guinea, the stock jumped over 8% in the final hour.
So what of the reds?
Here’s why you may want to be cautious on Ioneer – European Lithium, another lithium junior that jumped on Monday following news around US government stakes in lithium miners, fell today -35% back to around 16cps, suggesting some may have used the news to exit.
Elsewhere, HotCopper favourite Metallium fell over -8% on Tuesday as traders look elsewhere and week-by-week volatility remains the quo.
Finally, St Barbara Mining down steeply red in the final hour as a $58M placement, which is really just another name for a capital raise if you ignore some technicalities, scared some investors off.
That’s Market Close for Tuesday, I’m Jon Davidson, have a great night and we’ll see you on Wednesday.
