ASX Large Caps: ASX closes higher despite selloff in lithium stocks; Liontown crashes 20pc

ASX up around half percent, after S&P 500 hit record high on Friday
Liontown down -20pc on deepening trouble in the lithium sector
South32 and Lynas down after releasing quarterly production reports

Aussie shares were up by around 0.5%, tracking a big rally in New York on Friday.

The S&P 500 surged by more than 1% to a record high, buoyed by increasing bets and hopes of a soft economic landing.

The US market also benefitted from a sentiment lift from the semiconductor sector, following another positive outlook statement, this time from server manufacturer, Super Micro Computer.

“Much more good than bad news in the underlying economic data as we enter 2024, with inflation cooling,” said Art Hogan at B Riley Wealth.

On the ASX today, the benchmark ASX 200 index was led by Consumer Discretionary and Staple sectors, while the Mining sector closed in the red.

Liowntown (ASX:LTR) crashed by -20% after lenders pulled out a $760m loan promise to the company.

See more below, and read this: Liontown, Chalice, Wyloo tighten the belt in another rough morning for battery metals backers

Other lithium stocks, including Sayona Mining (ASX:SYA) and Mineral Resources (ASX:MIN) also sold off.

Meanwhile, oil prices were also trading in the red this afternoon as OPEC member Libya restarted production from its largest field.

And across the region, Asian stock markets trimmed early gains but were mostly in the green at the time of writing.

BIG CAP WINNERS

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Code Name Price % Change Volume Market Cap PNV Polynovo Limited 1.71 7.89 2,133,457 $1,094,018,910 A2M The A2 Milk Company 4.56 5.56 3,621,572 $3,123,078,371 360 Life360 Inc. 7.42 4.36 349,876 $1,453,763,854 BGA Bega Cheese Ltd 3.73 4.34 618,671 $1,087,128,457 IEL Idp Education Ltd 21.88 4.19 853,103 $5,845,060,431 SGR The Star Ent Grp 0.51 4.08 4,895,455 $1,405,653,630 AUB AUB Group Ltd 29.74 3.55 85,654 $3,113,409,406 SDF Steadfast Group Ltd 5.79 3.21 1,865,562 $6,206,290,687 SQ2 Block 101.03 3.07 67,369 $3,426,906,430 AWC Alumina Limited 1.04 2.99 6,022,855 $2,916,189,824 ALL Aristocrat Leisure 43.83 2.88 733,863 $27,417,428,714 OCL Objective Corp 12.40 2.86 15,773 $1,147,266,233 STX Strike Energy Ltd 0.46 2.78 6,305,016 $1,288,001,637 BKW Brickworks Limited 28.52 2.66 116,844 $4,234,507,206 MGH Maas Group Holdings 3.81 2.56 156,302 $1,216,599,157 ASK Abacus Storage King 1.06 2.43 557,502 $1,353,526,051 DTL Data#3 Limited 9.34 2.41 261,771 $1,410,901,064 CCP Credit Corp Group 16.55 2.32 114,850 $1,100,641,062 ORA Orora Limited 2.65 2.32 708,596 $3,479,664,842

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BIG CAP LOSERS

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Code Name Price % Change Volume Market Cap LTR Liontown Resources 0.96 -19.87 48,733,484 $2,894,271,782 MIN Mineral Resources. 53.01 -8.84 1,906,641 $11,350,090,788 LTM Arcadium Lithium PLC 7.49 -7.42 1,760,103 $4,389,732,892 ERA Energy Resources 0.06 -7.25 741,549 $1,528,232,644 JDO Judo Cap Holdings 0.93 -6.57 1,996,360 $1,098,207,825 DYL Deep Yellow Limited 1.39 -5.59 3,279,593 $1,127,558,562 PLS Pilbara Min Ltd 3.32 -4.32 25,410,860 $10,442,853,769 MCY Mercury NZ Limited 5.98 -4.32 1,253 $8,695,170,244 SLX Silex Systems 4.75 -3.46 260,186 $1,160,854,689 IGO IGO Limited 6.96 -3.33 4,552,420 $5,452,328,254 PDN Paladin Energy Ltd 1.20 -2.64 14,381,858 $3,669,551,906 CRN Coronado Global Res 1.63 -2.54 628,773 $2,808,059,998

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Liontown (ASX:LTR) crashed -20pc after revealing that a $760m finance package from financiers including ANZ, Commbank, HSBC, NAB, Societe Generale, the Clean Energy Finance Corporation, and export credit agencies have fallen over.

This comes as LTR said it would defer plans to expand the scale of its Kathleen Valley mine from an initial 3Mtpa underground mine to 4Mtpa, in response to collapsing lithium prices.

It comes amid a more than 80% fall in spodumene concentrate prices since early 2023, with prices now sitting around US$875/t, down from a peak spot level of more than US$8000/t.

South32 (ASX:S32) dropped after lowering its FY24 copper equivalent output guidance, as H1 alumina production fell by 1% year-on-year and aluminium output rose 1%.

For the quarter, payable copper output dropped 17% and nickel production by 10%. Metallurgical coal production tumbled 35%. Zinc and manganese output each declined by 5%. Lead and silver production increased by 12% and 20% respectively.

S32 said its H1 FY24 operating unit costs are expected to be in line or below FY24 guidance for the majority of its operations.

Lynas Rare Earths (ASX:LYC) also dropped after posting its quarterly activities.

Lynas said it produced 1566t of REO during the December quarter 2023, against 3609t for the previous quarter, and 4457t in the pcp.

Sales revenue tallied $112.5n against $128.1m and $232.7m respectively.

The average selling price came in at $28.7/kg from $47.4/kg and $58.4/kg respectively, while output was impacted by an upgrade-related shutdown of its facility in Malaysia.

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