ASX October Winners: Global markets rally – who led the way for small caps?

• Global share markets rally in October despite ongoing economic and geopolitical pressures
• WA1 Resources up 700% in October after a major rare earths discovery at the West Arunta project in WA.
• Hawsons Iron share price plunges in October as its slows work on key project bankable feasibility study

Global share markets were mostly up in October in a positive sign of recovery for what has been a volatile 2022. While risk assets crashed all over the world in September, it was actually better news for markets in October with the sell-off easing.

There was still talk of a global recession amid slowing economic growth,  high inflation, rising interest rates and the continued war in Ukraine.

However, it wasn’t all doom and gloom with markets overall having a huge comeback in October. European stocks had their first monthly gain in three, while the Dow Jones capped off its best month since 1976.

The October gains came on the back of relative positive earnings seasons and also hopes that the US Federal Reserve would slow the pace of interest rate hikes.

At home the S&P/ASX 200 rose more than 6%, despite higher-than-expected inflation, which jumped to 7.3% over the year to September, its highest level since 1990.

Trimmed-mean inflation, the RBA’s preferred measure that trims away large price movements, rose 1.8% in the quarter and 6.1% annually suggesting inflation throughout the economy is broad-based.

Confidence appeared to be regained in the UK economy after Liz Truss became its shortest PM in history with former finance minister Rishi Sunak chosen as the Conservative Party’s new leader, putting an end to proposed controversial tax cuts.

However, October wasn’t so kind to China with the Hang Seng falling ~14% and as Stockhead’s Christian Edwards noted its zero Covid-19 policy having a huge impact.

Here’s how the markets performed in October:

World Equities

Bonds 

Commodities 

Here are the top 50 performing ASX stocks for October:

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WA1 Resources (ASX:WA1)

In terms of ASX October winners, the big standout was former tiny explorer WA1 Resources, which was up a staggering 700% after announcing the discovery of a niobium-rare earths carbonatite mineralised system at the West Arunta project in WA.

As Stockhead’s Josh Chiat explained niobium is a critical mineral mainly used in steel to make it stronger and lighter, but also has growing uses in lithium-ion batteries, intelligent glass, solar panels, 5G tech, and nuclear energy.

Ferroniobium metal (65% Nb) currently sells for ~US$45,000/t. WA1’s only drillhole into the P2 target, part of the Pachpadra prospect area, pulled up thick, high-grade numbers like 54m at 0.62% niobium, 0.18% rare earths and 3.85% phosphorus from 162m.

WA1 also got off to a good start in November, going into a trading halt after gaining  another 60% in early trade on Tuesday.

Cettire (ASX:CTT)

Also standing out in the ASX October winners list was online luxury retailer Cettire, which saw an impressive rise in its share price during the month prompting a please explain from the ASX.

Cettire put down the increase to its positive trading update announced on October 11. 

Among highlights was sales revenue growth exceeding 70% versus pcp, adjusted EBITDA of $5.5 million on a delivered margin greater than 20%  and continued strong growth in active customers and revenue from repeat customers.

Here are the worst 50 performing ASX stocks for October:

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Hawsons Iron (ASX:HIO)

October wasn’t a good month for Hawsons Iron, which saw its share price plunge after announcing plans to slow work on a bankable feasibility study on its namesake project due to “escalating global costs and deteriorating economic conditions”.

The BFS will not be completed by the end of December 2022. Formerly known as Carpentaria Resources, Hawsons owns the deposit of the same name near the historic mining town of Broken Hill in New South Wales.