Why AVZ, Flight Centre, Fortescue, & Sigma shares are storming higher

These ASX shares are rising on Monday…

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The S&P/ASX 200 Index (ASX: XJO) has started the week on a positive note. In afternoon trade, the benchmark index is up 0.75% to 7,398.5 points.

Four ASX shares that are climbing more than most today are listed below. Here's why they are storming higher:

chart showing an increasing share price

Image source: Getty Images

AVZ Minerals Ltd (ASX: AVZ)

The AVZ share price has jumped 11.5% to 35.7 cents. This morning the lithium developer announced a transaction implementation agreement with Suzhou CATH Energy Technologies (CATH). The agreement will see CATH pay US$240 million in cash for a 24% equity interest in a multi-faceted joint venture to develop the Manono Lithium and Tin Project. CATH will also contribute its pro rata portion of funding for the development of the project.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is up 7% to $21.22. Investors have been buying Flight Centre and other travel shares today. This appears to have been driven by a positive reaction to New South Wales' roadmap out of lockdown. These plans could be a boost to travel markets.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price has risen 4% to $15.98. The catalyst for this was a rebound in the iron ore price on Friday night. According to Metal Bulletin, the spot benchmark iron ore price rose 2.4% to US$111.33 a tonne. Investors appear optimistic that this could mean the worst is over for the iron ore price.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma share price is up 3% to 61 cents. Investors have been buying Sigma's shares after it tabled a takeover offer for rival pharmacy chain operator and distributor Australian Pharmaceutical Industries Ltd (ASX: API). Sigma has offered $1.57 per share in cash and shares. This compares to a $1.55 per share offer from Wesfarmers Ltd (ASX: WES). The API board has granted Sigma due diligence to facilitate a binding offer. It believes the offer is more favourable to shareholders.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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