Why these ASX shares rose over 2% despite weak market

Australian shares traded on a weak note on Wednesday, triggered by the US inflation data for May. The domestic market’s decline was led by losses in the IT, A-REITs, and energy sectors. The ASX 200 closed Wednesday 1.27% down to hit a new 52-week low. Over the last five days, the index has lost 7.30%. At yesterday’s market close, all the 11 sectors closed lower.

Despite this downside, there were a few shares which managed to post gains. These notable exceptions mainly gained on account of price-sensitive announcements.

On this note, let’s discuss why these three ASX-listed shares jumped over 2% on Wednesday despite an overall weakness in the stock market:

Incitec Pivot Ltd (ASX:IPL)

Incitec Pivot is an Australian multinational corporation that manufactures fertiliser, explosives chemicals, and mining service.

Shares of Incitec Pivot ended 2.35% higher at AU$3.49 on Wednesday, reaching as high as 3% during the day. On Tuesday, the stock closed at its 3-month low.

The stock surged despite no price-sensitive news from the company. Even the materials sector traded in the red during the day.

GrainCorp Ltd (ASX:GNC)

GrainCorp is engaged in receiving and storage of grain and related commodities. It also provides logistics and markets these commodities

Shares of GrainCorp ended 3% higher at AU$9.95 on Wednesday, having jumping over 4% at one point during the day.

The stock jumped despite no major announcement coming from the company. GrainCorp is currently continuing with its 22.8 million share buyback, which it announced on 2 June 2022. In the latest round, the company secured another 581,963 shares.

Lynas Rare Earths Ltd (ASX:LYC)

Lynas Rare Earths is an Australian rare-earths mining company. It has two major operations: a mining and concentration plant at Mount Weld, Western Australia, and a refining facility at Kuantan, Malaysia.

Shares of Lynas Rare Earth ended 4.22% higher at AU$8.89 on Wednesday.

On Tuesday, the company released an update about inking an agreement for nearly US$120 million with the US Department of Defense (DoD).

This contract is expected to see Lynas establish a first-of-its-kind commercial Heavy Rare Earths separation facility in the US.

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