ASX Trading Wrap: Brainchip soars, lithium names extend records
Facebook
Twitter
Linkedin
Copy link

Rene Anthony
Market Analysis
14 January 2022
4 min to read
As supply chain woes begin to take their toll on ASX names, the local benchmark index finished the week lower, down 0.8% to 7,393.9 points. Strength in the commodities market, mainly energy, iron ore and lithium, was a bright spot, as was the performance of tech stock Brainchip.
Which shares excelled?
For the second week running, microchip developer Brainchip (ASX: BRN) was the ASX’s top-performing mid-to-large cap stock, up more than 40% in the first four days of the trading week to eclipse a $2 billion valuation, and then surging again on Friday morning to at one stage be up 80% for the week. The company did not release any news throughout the first half of the week, and in fact it was forced to respond to a ‘speeding ticket’ price query from the ASX. On Friday, it issued notice of a capital call, effectively securing funding for the company based on the recent favourable run. However, it appears the momentum has been in full swing since Mercedes-Benz unveiled it will use an Akida microchip in its Vision EQXX concept car. Favourable media coverage in the AFR may have also sparked buying action. Elsewhere, hitting all-time highs, Core Lithium (ASX: CXO) burst out of the gates this week. That follows optimistic outlooks for lithium prices from the likes of JPMorgan and S&P Global Platts, which anticipate a supply deficit for lithium starting this year. Those forecasts have also supported lithium peers like Liontown Resources (ASX: LTR), which signed an offtake term sheet with LG Energy Solutions this week, and Pilbara Minerals (ASX: PLS), which hit a record high.
