The S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a strong gain. In afternoon trade, the benchmark index is up 0.8% to 8,275.1 points.
Four ASX shares that are rising more than most today are listed below. Here's why they are shooting higher:
Fletcher Building Ltd (ASX: FBU)
The Fletcher Building share price is up 4% to $2.60. Investors have been buying this struggling building materials company's shares thanks to a bullish broker note out of Citi this morning. The broker is feeling more upbeat about Fletcher Building's outlook thanks to its recent capital raising, which has strengthened its balance sheet. In addition, it notes that falling interest rates could be a boost to activity levels. In light of these factors, the broker has upgraded Fletcher Building's shares to a buy rating (from sell) with a NZ$3.30 (A$3.03) price target. This implies further upside of almost 17% for investors.
Fortescue Ltd (ASX: FMG)
The Fortescue share price is up 3% to $20.71. This iron ore giant's shares have rallied strongly in recent sessions following the announcement of economic stimulus in China. Investors appear to believe that this could give iron ore demand a boost and lead to higher prices of the steel making ingredient. Following today's gain, Fortescue's shares are now up 17% since this time last week. According to CommSec, iron ore futures climbed 44 US cents or 0.5% to US$92.98 a tonne on Friday.
Liontown Resources Ltd (ASX: LTR)
The Liontown Resources share price is up 5% to 82.5 cents. This morning, the lithium miner released its full year results and reported a net loss after tax of $64.9 million. However, this was expected as the company wasn't producing lithium until after the end of the financial year. But it is now. Management separately announced the maiden shipment of spodumene concentrate and the commencement of spot sales for spodumene concentrate from the Kathleen Valley Lithium Project. The latter saw the lithium miner sell 10,000 tonnes of spodumene concentrate to a Singapore-based trader with a reference price of US$802 per dry metric tonne (dmt). This was a premium to spot prices. This shipment is scheduled for the fourth quarter of 2024.
Star Entertainment Group Ltd (ASX: SGR)
The Star Entertainment share price is up 20% to 30 cents. Investors have been buying this casino and resorts operator's shares despite there being no news out of it. However, it is worth noting that its shares crashed deep into the red on Friday after returning to trade. This could mean that some investors believe that its shares were oversold.
