ASX finishes week on high as mining sector benefits from boost in lithium shares

ASX has experienced its second day of gains, as the energy sector sees a boost following the changes in the core lithium and nickel industries.

The Australian sharemarket has finished the week on a high, as core lithium companies boost the market.

The benchmark ASX 200 index advanced by 0.7 per cent, or 52.6 points, to finish the session at 7658.3 points.

The broader All Ordinaries went up by 0.69 per cent, to close at 7905 points.

Eight of 11 sectors were in the green when markets closed on Friday, with the mining sector outperforming all other sectors after increasing by 1.5 per cent.

The Australian Stock Exchange has finished the week on a high. Picture: NCA NewsWire / Christian Gilles

Core Lithium companies Liontown Resources and Pilbara Minerals did extremely well, both finishing up 11.9 per cent and 7.23 per cent higher respectively at the close.

“Last night, the world's largest lithium miner said that lithium prices were unsustainably low basically saying they’d have to improve at some point,” CommSec market analyst Laura Besarati said

“This did see Core Lithium Liontown and Pilbara doing quite well today on the hopes of lithium prices doing well down the track.“

It comes off the back of the Albanese government’s decision to place nickel on the Critical Minerals List.

Resources Minister Madeleine King said companies will now have access to financing under the $4bn facility, and critical minerals – related grant programs such as the International Partnerships Program worth $40m.

Federal resources minister Madeleine King says the nickel industry will get financial help. Picture: NCA NewsWire / Gary Ramage

“A strong resources industry is central to a strong Australian economy,” she said.

“The road to net zero runs through the resources sector. Minerals such as nickel are essential to the energy transition.”

Ms King urged the nickel industry to consider the possibility of a substantial structural challenges to ensure its longevity.

“The international nickel price is forecast to stay relatively low through 2024, and likely for several years to come until the surplus of nickel in the market is corrected,” Ms King said.

“In the meantime, this puts further Australian nickel operations at risk.”

The energy sector also fared well, finishing up 1 per cent higher on Friday.

The Australian dollar increased by 0.08 per cent to finish at US 65.25c on Friday.

Overseas, the S & P 500 closed 0.6 per cent hitting a record high of 5029 points, while the Dow Jones rose 0.4 per cent.