Why A2 Milk, Perenti, Sigma Healthcare, and Synlait shares are racing higher

These ASX shares are having a strong session on Tuesday.

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The S&P/ASX 200 Index (ASX: XJO) has followed Wall Street's lead and dropped into the red. In afternoon trade, the benchmark index is down 0.5% to 7,181.5 points.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

A man sees some good news on his phone and gives a little cheer.

Image source: Getty Images

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 3.5% to $5.53. This follows news that the infant formula company's products have received approval from Chinese authorities. This means A2 Milk will be able to continue supplying its infant formula to the China market until 2027.

Perenti Ltd (ASX: PRN)

The Perenti share price is up 5% to $1.23. This morning, this mining services company released a business update which revealed that it expects to achieve the high-end of its guidance range in FY 2023. Revenue is expected to be $2.9 billion with EBIT before amortisation of $260 million to $265 million. Perenti's previous guidance was for $2.8 billion to $2.9 billion and earnings of $250 million to $265 million.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price has jumped over 21% to 77 cents. Investors have been buying this pharmacy operator and supplier's shares after it announced a major contract win. Sigma has signed a deal with Chemist Warehouse worth an estimated minimum of $3 billion in sales revenue per year. This includes the renewal of a previous contract that was generating approximately $1 billion in sales. As part of the deal, Chemist Warehouse will be given a 10.7% stake in the company.

Synlait Milk Ltd (ASX: SM1)

The Synlait Milk share price is up 12% to $1.67. This follows the aforementioned news that A2 Milk's products have been approved for sale in China until 2027. Synlait Milk is the dairy processing partner of A2 Milk, so it stands to benefit from the approval.

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 has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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