Energy Stocks Flourish as South32 and Core Lithium Stumble

The ASX experienced a diverse day with different sectors showing varying performance trends. The materials sector, particularly Lithium, was a significant contributor to the market’s downward trajectory. Energy stocks, however, emerged as the only ray of hope. Spurred by Oil prices, Santos (STO) and Worley (WDS) registered considerable gains.

The Brokers also had a dynamic day with multiple upgrades and downgrades.

• Monadelphous was the most impacted, experiencing a 4.7 per cent dip to $12.50. This was a result of JPMorgan’s decision to downgrade its recommendation on the mining services firm from overweight to neutral.

As for the company updates, some negative developments were reported.

• South32 witnessed a 2.6 per cent fall to $3.72. This followed a reduction of $1.9 billion in the value of its proposed Hermosa project.

• Core Lithium also reported a significant decrease of 17.2 per cent to 72¢. The company provided a production guidance lower than feasibility studies had previously indicated. This news was received positively by the short-sellers, particularly those involved with the ASX’s 2nd most shorted stock.