Guess which ASX share just rocketed 30% before being halted

This ASX share was on fire before it was slammed into a trading halt.

| More on:
A young woman lifts her red glasses with one hand as she takes a closer look at news about interest rates rising and one expert's surprising recommendation as to which ASX shares to buy

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The PPK Group Limited (ASX: PPK) share price was having a stunning day before being slammed into a trading halt this afternoon.

The investment company's shares were up as much as 30% to $1.23 before they were halted.

Though, this is little consolation for longer term shareholders. Even after today's remarkable gain, this ASX share is down over 75% since this time last year.

Why is this ASX share rocketing higher?

Investors were bidding this ASX share higher today after one of its major investments revealed that a material announcement would be coming this week.

That investment is in fellow ASX share, Li-S Energy Ltd (ASX: LIS). It is a battery technology company that is aiming to develop new lithium sulfur and lithium metal batteries to power the world's future energy needs.

This morning, Li-S Energy requested a trading halt until the earlier of the commence of trade on Wednesday or the release of an announcement. The latter will be something material according to its request. It commented:

The Company requests the trading halt pending a material announcement in relation to research and development results.

Judging by the performance of the PPK share price today, some investors appear to believe something exciting will be announced that drives the Li-S Energy share price higher, dragging the PPK share price along with it.

At the last count, PPK owned approximately 45% of Li-S Energy. This values its investment at roughly $19.2 million. As a comparison, following its strong gain today, the PPK market capitalisation now stands at almost $110 million.

On Wednesday (or potentially earlier) we will find out whether this news was worthy of driving this ASX share 30% higher today.

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

Miner standing in front of trucks and smiling, symbolising a rising share price.
Materials Shares

Core Lithium share price storming higher on 'excellent' exploration results

ASX investors are sending Core Lithium shares flying higher today.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Forget Fortescue and buy this ASX mining stock for a 30%+ return

Goldman Sachs thinks this miner is a far better option for investors seeking iron ore exposure.

Read more »

Man with his hand on his face looking at a falling share price chart on a tablet.
Materials Shares

Is the beaten down Mineral Resources share price a bargain buy now?

Let's see what Bell Potter is saying about the miner after Monday's selloff.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Materials Shares

Why did the Core Lithium share price hit a wall in October?

The Core Lithium share price rally came to an abrupt end in October. But why?

Read more »

Businessman walking down staircase with suitcase, at sunrise
Materials Shares

Mineral Resources shares sink 7% on CEO exit and 'major actions'

This mining company's CEO is leaving following a scandal.

Read more »

A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price
Materials Shares

Why this ASX lithium stock almost doubled in value in October

This lithium miner made its shareholders smile last month. But why?

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Materials Shares

Guess which ASX All Ords stock just rocketed 80%

What is getting investors excited about this stock today? Let's find out.

Read more »

two businessmen shake hands in a close up mid-level shot with other businesspeople looking on approvingly in the background.
Materials Shares

Core Lithium share price higher on 'invaluable' ex-Rio Tinto appointment

The lithium miner has made a new addition

Read more »