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At lunch on Tuesday, the S&P/ASX 200 Index (ASX:XJO) is fighting hard to stay in positive territory. The benchmark is currently up 0.3% at 6,620.5 points.
Here’s what’s happening on the ASX 200 on Tuesday:
Zip cancels its merger with Sezzle
The Zip Co Ltd (ASX: ZIP) the stock price is finally heading in the right direction. This follows a positive reaction to the supplier’s decision to buy now, pay later (BNPL) to abandon its merger with rival Sezdle Ltd (ASX: SZL). Although the decision is mutual, Zip will pay Sezzle a severance fee of US$11 million. Sezzle shares tumbled 34% on the news, leaving it with a market capitalization of around $52 million. The market seems to believe that its days are numbered.
Lake Resources halts stock after J Capital attack
The Lake NL Resources (ASX:LKE) stock price was halted on Tuesday. This is how the embattled lithium developer can respond to a short seller report from J Capital. The research company commented: “Lake is one of many lithium explorers considering using unproven direct lithium extraction (DLE) technology to remove lithium from brine.[…] However, we believe that DLE will still use large amounts of water and produce toxic waste. Lake failed to set up an operational pilot plant on site three years after promising it would.
AP Eagers Update
The Eagers Automotive Ltd (ASX:APE) The stock price rose today after the auto retailer released a semi-annual trading update. Eagers revealed that it expects to report statutory pre-tax net profit from continuing operations of $246 million. That’s ahead of its guidance range of $225 million to $240 million.
The Best and Worst Performers of the ASX 200
The best performer of the ASX 200 index was the New Hope Corporation Limited (ASX:NHC) stock price with a 5% gain. This follows a positive trading night for coal prices. Going the other way, the Core Lithium Ltd (ASX:CXO) the stock price is the worst performer with a decline of 6%. Weakness in the lithium industry offset the release of a mineral resources update.