ASX 200 shares Strike Energy Ltd (ASX: STX) and Sims Ltd (ASX: SGM) are leading the market today with strong share price gains following big news announcements.
The S&P/ASX 200 Index (ASX: XJO) is currently up 0.27% to 8,163.8 points.
In earlier trading, the benchmark index hit a new all-time high of 8,186.9 points, propelled by a 50-basis-point cut to interest rates in the United States and steady new unemployment figures.
Meantime, the leader of the ASX 200 today, Sims shares, are up 11.7% to $12.32. The next best performer, ASX 200 energy share Strike, is up 9.76% to 23 cents.
Let's find out why.
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Why are these ASX 200 shares soaring today?
Sims provides guidance for 1Q FY25
ASX 200 materials share Sims is down 21% in the year to date.
The scrap metal company released a trading update today that includes guidance for 1Q FY25 for its metal businesses.
Sims said that despite ongoing market challenges, its metal businesses are projected to deliver an estimated EBIT of $55 million in 1Q FY25.
The North America Metal (NAM) business stands out. The company estimates it will deliver $29 million in EBIT and 22% in trading margin.
Sims CEO, Stephen Mikkelsen, commented:
It is encouraging to see the improved performance of our Metal businesses despite the challenging market conditions, particularly as we refocused our portfolio.
I am especially pleased with the strong results in NAM, which highlight the successful execution of our strategy in a difficult market and the team's commitment to organisational adjustments.
Dumped export ban "a strong positive for Strike"
ASX 200 energy share Strike is down 54% in the year to date.
The Western Australian (WA) gas explorer and producer released an announcement today in response to the state government's decision to remove the export ban for onshore gas production.
The WA Government will now allow the export of up to 20% of total production volumes until the end of 2030 on all pre-FID (final investment decision) projects.
Strike says the decision forms part of a refreshed export framework for its Perth Basin gas assets.
In a statement, Strike said:
This evolution in the WA Domestic Gas policy is a strong positive for Strike where export markets
provide premium pricing and a deeper market.Strike stands to benefit through its substantial uncontracted gas Reserves and Resources position across its suite of pre-FID projects.
Strike also has some of the most prospective exploration acreage in the Basin, which was recently demonstrated by the Erregulla Deep gas discovery, and this policy may increase the rate of Strike's exploration activities and investment.
Strike said the next step is to discuss the mechanics of the policy update with the WA Government.
This will help the company determine how the change might immediately augment its operations and gas marketing activities.
Strike Energy is currently one of the most shorted ASX 200 shares on the market today. According to ASIC's latest short position report, Strike shares have a short interest of 10%.
