The ASX has made a strong start to the week.
The S&P/ASX200 had gained 30.20 points or 0.41% to 7,473.20 at time of writing, crossing above its 20-day moving average.
Over the last five days, the index has gained 0.28% and is currently 2.09% off its 52-week high.
The top-performing stocks so far are Mesoblast Limited up 10% and Nickel Mines Ltd up 7.04%.
Mesoblast’s performance comes on the back of trial results of Rexlemestrocel.
Incitec Pivot is also on a surge, up more than 6.6% to $3.30 after its earnings beat estimates.
Incitec booked a $209.1 million profit for its full financial year. In doing so, it slashed $293.4 million from the value of its manufacturing plants, but noted underlying net profits were up 91% for the year.
The company is set to pay an 8.3 cent final dividend on the improved $359 million net underlying result.
According to managing director Jeanne Johns, the full-year result reflected a strong second half to its financial year due to core markets recovering from the pandemic.
"The strong full year result reflects the strength of the second half, with strong pull through from technology in explosives and a recovery in our end markets as well as our Fertilisers business capturing the upswing in commodities prices,” Johns said in a statement.
CSL was also a winner this morning with its 0.7% gain to $309.41, making it the top contributor to the index in early trade before being surpassed.
Lithium stocks get a boost
Australian lithium explorers would be pleased by Macquarie Global, after its analysts lifted expectations linked to a near-term potential lithium carbonate deficit in China.
The deficit would lead to a rebound in downstream demand and soft seasonal domestic supply as global demand grows.
Macquarie has named Pilbara Minerals and Mineral Resources as its pick of the Australian-based lithium producers litter.
"PLS remains our preferred AU producers given its near-term growth while MIN remains one of our preferred stocks in the broader resources sector.
"We recently lifted our LTR (Liontown Resources) price target to A$2.00, underpinned by lower Stage 2 and downstream funding and the earlier start of Kathleen Valley.
"ORE (Orocobre) offers unique exposure to both lithium brine in South America and spodumene production in Australia.
"LTR’s Kathleen Valley remains one of the largest development projects with offtake available to third parties," analysts said.
Macquarie's Global EV tracker shows strong sales growth in the US and China. This is despite a chip shortage and as the EV market in Europe stayed solid in October following the end of Q3 sales push in September.
On the small cap front
Pantoro Ltd (ASX:PNR) is up 26.09%. PNR’s maiden step-out drill program on the prospective Lamboo ultramafic basal contact at its 100%-owned Halls Creek Project in WA, has returned platinum group element (PGE) results described as "outstanding".
Nexus Minerals Ltd (ASX:NXM) is up 22% after adding $19 million to its balance sheet, thanks to strong support from institutional, sophisticated and professional investors.
MMJ Group Holdings Ltd (ASX:MMJ, OTC:MMJJF) is up 9.37%. MMJ increased its investment holding in unlisted Canadian cannabis company Weed Me Inc with the completion of a follow-on investment of C$1 million in the form of an unsecured convertible note.
Kin Mining NL (ASX:KIN) is up 4.35% after initial aircore drilling at the Pegasus revealed a new shallow, high-grade gold discovery.
Oklo Resources Ltd (ASX:OKU) is up 3.57%. OKU’’s first assay results from the 2022 drilling season have revealed further high-grade gold at Disse within the company’s 100%-owned flagship Dandoko Gold Project in west Mali.
Queensland Pacific Metals Ltd (ASX:QPM) is up 2.98%. QPM received strong interest from a range of Australian and International debt providers to participate in planned debt syndication for the development of its TECH Project at the Lansdown Eco-Industrial Precinct in North Queensland.
Kazia Therapeutics Ltd (ASX:KZA, NASDAQ:KZIA) is up 2.90% after appointing John Friend MD, the former chief medical officer (CMO) at Cellectar Biosciences (NASDAQ:CLRB) Inc as its new CMO.
PVW Resources NL (ASX:PVW) is up 2.38%. PVW extended its King of The West gold anomaly 2 kilometres south thanks to a series of auger geochemistry findings.