ASX Rises as Horizon Minerals and Island Pharmaceuticals Lead Gains

Highlights

• ASX lifts 0.1% as investors stay cautious amid Middle East tensions.
• Horizon Minerals rises 2.13% after first ore mined at Boorara Gold Project.
• Island Pharmaceuticals jumps nearly 40% following successful clinical trial dosing.

The ASX ended Thursday up by 0.1%, closing at 8,205 points, in what was a cautious day of trading as investors continue to monitor the ongoing tensions in the Middle East. The broader market saw little movement, with no sector rising or falling by more than 1%. This mirrored the flat overnight performance on Wall Street, where U.S. indices edged up slightly in anticipation of the upcoming September jobs data report, which is expected to provide insight into the U.S. economy and may influence future Federal Reserve interest rate decisions.

Energy stocks on the ASX pulled back after yesterday's rally, driven by the stabilization of oil prices following a recent 5% surge.

Stocks in Focus

Horizon Minerals (ASX:HRZ) gained 2.13% after announcing the first ore extraction at its Boorara Gold Project near Kalgoorlie, Western Australia. The company expects to pour its first gold and generate initial revenues in the near future. Horizon closed the session at 4.8 cents, signaling optimism surrounding its operational milestones.

Pilbara Minerals (ASX:PLS) experienced a decline of 5% after reports that major financial institutions executed trades involving a block of its shares at a 4.1% discount. This news also impacted other lithium stocks, including Mineral Resources (ASX:MIN), which fell by over 1%, and IGO (ASX:IGO), which dropped more than 2%. Pilbara closed the day at $3.15.

Westpac Banking Corp (ASX:WBC) saw a 1% dip after announcing the sale of its auto finance loans and lease receivables to Resimac (ASX:RMC), a transaction valued between $1.4 billion and $1.6 billion. This sale marks Westpac’s complete exit from the auto finance sector, a process that began with a partial sale in 2021. The deal is expected to close in the first half of 2025, and the bank stated that it is not likely to have a significant impact on its financial results.

Sigma Healthcare (ASX:SIG) continued its upward momentum, rising by 8% after implementing new data-sharing rules aimed at addressing concerns related to its merger with Chemist Warehouse. These changes include allowing Sigma’s franchisees to terminate agreements with Chemist Warehouse and limiting the use of confidential data from Sigma Wholesale customers for the next three years.

Small Cap Leaders

Island Pharmaceuticals (ASX:ILA) soared nearly 40% after successfully dosing all subjects in the Phase 2a portion of its ISLA-101 clinical trial for dengue fever. The trial, named PROTECT, includes both preventative and therapeutic phases, with results from Phase 2a expected by the end of 2024. The company is also planning to begin Phase 2b in January 2025. Island Pharmaceuticals is raising $3.5 million to fund these developments, with a two-tranche placement offering shares at a discount of 12%, and is backed by prominent biotech investors.

Chariot Corporation (ASX:CC9) advanced after announcing a strategic shift for its Black Mountain lithium project in Wyoming, USA. The company is moving from exploring a large-scale resource to testing the viability of a pilot mine, aiming to produce spodumene concentrate and capitalize on North America's lithium supply deficit. Chariot’s new approach, which includes a flexible modular plant design, could generate early cash flow and lay the groundwork for future expansion.

Small Cap Laggards

On the downside, Energy Transition Minerals (ASX:ETM) fell 12% after receiving an adjournment notice in its tribunal proceedings with the government of Greenland over a disputed mining permit. Tivan (ASX:TVN) was also down 2.1% after announcing plans for maiden drilling at its Sandover project in the Northern Territory.

As market volatility continues, investor attention remains focused on developments both in Australia and abroad, with particular interest in how global tensions and upcoming economic data might shape the market in the coming days.