The ASX advanced only marginally at market open on Monday (7 October), but lithium was a big standout after Rio Tinto (ASX:RIO) confirmed it has indeed tabled an offer for $4.46 billion miner Arcadium Lithium (ASX:LTM).
The S&P/ASX 200 rose just 3 points, or 0.04%, to 8,153 points at 10:34am AEDT.
Materials advanced 0.67% led by Arcadium, which spiked 47.61%, after Rio Tinto responded to media speculation that it was pursuing the lithium producer.
The mining heavyweight “confirmed that it has made an approach to Arcadium Lithium regarding a potential acquisition of Arcadium Lithium by Rio Tinto”.
“The approach is non-binding and there is no certainty that any transaction will be agreed to or will proceed.”
Arcadium tops the ASX’s 90-day average volume outliers with a 1,103% rise in volume in the past 90 days.
Fellow lithium miner Liontown Resources (ASX:LTR) took out second spot in early trade, advancing 7.09%. Pilbara Minerals also joined the contingent with a 4.75% tick up. IGO (ASX:IGO), which also has lithium interests, jumped 5.83% while uranium producer Boss Energy (ASX:BOE) added 5.36%.
Liontown and Pilbara Minerals are also among the top five 90-day average volume outliers with increases of 542% and 342%, respectively.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & Stock
