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ASX Small Cap Lunch Wrap: Biden stimulus and high oil prices boost Aussie stock market
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US President-Elect Joe Biden has hit the ground running a week before officially taking over the top job from incumbent President Donald Trump on January 20.
Biden announced overnight a $US1.9 trillion ($2.44 trillion) package of spending measures to boost the flagging US economy that includes $US2,000 cheques for citizen tax payers.
“We cannot let people go hungry, we cannot let people get evicted,” Biden said in a speech Thursday. “We must act now and act decisively,” he reportedly said.
The spending is on top of $US4 trillion of spending passed by the US Congress to tackle the COVID-19 pandemic and its economic fallout.
This includes a $US900 billion package steered on to the statute books last month, and the latest spending package brings the total amount of emergency spending to nearly $US6 trillion.
US stock indexes appear indifferent to stimulus spending
Despite the promised spending injection US stock indexes reacted poorly, with the Dow Jones dropping 0.22 per cent to close Thursday at 30,991.5 points.
The Nasdaq index for US tech stocks finished Thursday trade 16.3 points lower at 13,112 points, and just off its recent record high of 13,200 points.
Gold prices edged slightly higher to $US1,852 per ounce ($2,382/oz) in Friday trade after the announced $US1.9 trillion spending package from Biden.
“Tech and consumer discretionary sectors were the biggest losers, while energy shares rose with oil,” said analysts at Argonaut Securities in a note.
Oil prices picked up speed to $US53 per barrel, their highest for 10 months.
At lunch, the broad ASX All Ordinaries index was in the green at 7,004 points, a rise of 21.6 points or 0.3 per cent.
WINNERS
Here are the best performing ASX small cap stocks at 12pm Friday January 15:
Swipe or scroll to reveal the full table. Click headings to sort.
Stocks highlighted in yellow made market moving announcements
| CODE | NAME | PRICE | % CHANGE | VOLUME | MARKET CAP |
|---|---|---|---|---|---|
| BAS | Bass Oil Ltd | 0.002 | 100 | 2492524 | $ 3,342,140.10 |
| ANL | Amani Gold Ltd | 0.0015 | 50 | 31100000 | $ 9,386,996.75 |
| CCE | Carnegie Cln Energy | 0.0015 | 50 | 8315000 | $ 11,532,068.56 |
| CLZ | Classic Min Ltd | 0.0015 | 50 | 11900000 | $ 16,734,968.31 |
| ECT | Env Clean Tech Ltd. | 0.0015 | 50 | 3500050 | $ 9,601,032.79 |
| VPR | Volt Power Group | 0.003 | 50 | 16176292 | $ 18,339,067.12 |
| VUL | Vulcan Energy | 6.59 | 32 | 2456635 | $ 393,879,512.30 |
| RNE | Renu Energy Ltd | 0.068 | 31 | 1656390 | $ 5,522,937.73 |
| IGN | Ignite Ltd | 0.05 | 28 | 123698 | $ 3,493,704.83 |
| FPL | Fremont Petroleum | 0.005 | 25 | 3756000 | $ 18,700,716.75 |
| ROG | Red Sky Energy. | 0.0025 | 25 | 250000 | $ 4,863,844.39 |
| LIT | Lithium Australia NL | 0.098 | 24 | 19395036 | $ 63,744,510.34 |
| SHE | Stonehorse Energy Lt | 0.031 | 24 | 33359130 | $ 9,872,244.65 |
| BRL | Bathurst Res Ltd. | 0.053 | 23 | 1703801 | $ 73,509,335.53 |
| A1G | African Gold Ltd. | 0.275 | 22 | 101991 | $ 11,326,362.08 |
| ADX | ADX Energy Ltd | 0.0085 | 21 | 26431784 | $ 13,708,098.94 |
| NWE | Norwest Energy NL | 0.0085 | 21 | 16297647 | $ 33,141,269.52 |
| MCM | Mc Mining Ltd | 0.175 | 21 | 29814 | $ 22,390,835.48 |
| RNU | Renascor Res Ltd | 0.018 | 20 | 16738538 | $ 24,940,164.84 |
| OEL | Otto Energy Limited | 0.012 | 20 | 3470650 | $ 47,950,097.73 |
Energy and resources stocks led the charge higher in Friday morning ASX trade with renewable energy, coal, oil and lithium companies the focus of investor interest.
Top stock Friday is Bass Oil (ASX:BAS) which has not released any new information since an operations update in December for its Indonesian oil production.
Crude oil prices increased overnight, with the West Texas blend rising to $US53.65 per barrel, its highest since March, which means increased profit margin for Bass Oil.
Clean energy stock ReNu Energy (ASX:RNE) gained around 30 per cent in the absence of any fresh news as the company finalises the disposal of its two remaining geothermal wells.
The ASX company has been looking for merger and acquisition opportunities having sold its 2.2MW of solar energy projects and two bioenergy projects for 2.7MW.
“Opportunities are being explored actively by ReNu Energy. If discussions in relation to any of these are successful and lead to a definitive transaction, it could be transformational for ReNu Energy,” said the company in answer to an ASX price query, January 4.
ReNu Energy changed its name from Geodynamics in 2016 and listed on the ASX in 2002, and is a clean energy company focused on renewable energy.
MC Mining and Vulcan Energy Resources make gains
Another stock to rise significantly Friday without any news is MC Mining (ASX:MCM) which had some senior management changes in December with the departure of its CEO.
The coal company has mining operations in South Africa for thermal and coking coal including its Makhado project for hard coking coal.
Thermal coal prices have been on the rise with severe cold weather in north Asia that has seen LNG prices take off, and non-Australian coal is in vogue for Chinese buyers.
Vulcan Energy Resources (ASX:VUL) made strong gains after trading in its shares resumed after a short suspension to release a corporate update.
The update centred on a pre-feasibility study for its Zero Carbon Lithium project which aims to decarbonise the high carbon footprint of lithium-ion battery production.
Europe is the world’s fastest growing lithium-ion battery production centre and Vulcan Energy Resources’ project in Germany is designed to feed this soaring demand.
The feasibility study showed the company’s project has a net present value of 2.25 billion Euros ($3.5 billion) to produce approximately 40,000 tonnes per year of lithium.
LOSERS
Here are the worst performing ASX small cap stocks at 12pm Friday January 15:
Swipe or scroll to reveal the full table. Click headings to sort.
| CODE | NAME | PRICE | % CHANGE | VOLUME | MARKET CAP |
|---|---|---|---|---|---|
| WOO | Wooboard Tech Ltd | 0.002 | -20 | 312434 | $ 4,206,091.76 |
| XTC | Xantippe Res Ltd | 0.002 | -20 | 1324613 | $ 10,186,411.01 |
| DOR | Doriemus PLC | 0.047 | -15 | 115535 | $ 3,189,071.88 |
| FGO | Fargo Enterprises | 0.0035 | -13 | 575000 | $ 4,743,026.81 |
| MRD | Mount Ridley Mines | 0.0035 | -13 | 305250 | $ 15,540,852.18 |
| YPB | YPB Group Ltd | 0.0035 | -13 | 48117590 | $ 16,913,435.92 |
| AQC | Auspaccoal Ltd | 0.14 | -13 | 10000 | $ 8,077,569.60 |
| NC6 | Nanollose Limited | 0.12 | -11 | 5227797 | $ 16,031,127.83 |
| ELT | Elementos Limited | 0.008 | -11 | 905666 | $ 29,216,937.80 |
| RXH | Rewardle Holding Ltd | 0.008 | -11 | 114577 | $ 4,736,893.39 |
| TYR | Tyro Payments | 2.36 | -10 | 6386732 | $ 1,335,531,318.55 |
| SWK | Swick Mining | 0.18 | -10 | 384442 | $ 59,808,644.60 |
| ARO | Astro Resources NL | 0.0045 | -10 | 9249908 | $ 14,978,465.06 |
| FNT | Frontier Resources | 0.018 | -10 | 11269918 | $ 9,782,038.76 |
| EMT | Emetals Limited | 0.029 | -9 | 778662 | $ 12,806,400.00 |
| RXL | Rox Resources | 0.039 | -9 | 12357208 | $ 88,142,623.91 |
| BSM | Bass Metals Ltd | 0.005 | -9 | 85000 | $ 22,119,216.54 |
| EFE | Eastern Iron | 0.01 | -9 | 4063645 | $ 5,210,539.77 |
| TIG | Tigers Realm Coal | 0.01 | -9 | 8256051 | $ 143,589,542.45 |
| SAN | Sagalio Energy Ltd | 0.03 | -9 | 2061712 | $ 6,753,784.29 |
| REZ | Resourc & En Grp Ltd | 0.052 | -9 | 2982891 | $ 24,605,804.97 |
Britain-based oil and gas company Doriemus (ASX:DOR) was one of the biggest fallers in early trading without releasing any news to the market.
The ASX company is exploring for oil and gas in the Weald Basin in southern England and on the Isle of Wight, plus it has some farm-in interests in WA’s Canning Basin.
Doriemus has a 65 per cent interest in two petroleum exploration licences in the northern Weald Basin near London’s Gatwick Airport and covering nearly 100sqkm.
Dartbrook coal mine developer Australian Pacific Coal (ASX:AQC) dropped more than 10 percent on a lack of any market update.
The coal explorer is appealing a decision of the NSW Land and Environment Court to join legal action by the Hunter Thoroghbred Breeders Association against its Dartbrook project.
The case is expected to be heard by the NSW Court of Appel before mid-year.
Separately, the company announced earlier this week it has started a strategic review of its Dartbrook project valued at ~$3.3m that includes the option of selling it.
Eco-friendly fibres company Nanollose (ASX:NC6) lost some of the gains it made this week after announcing a tie-up with a unit of Indian company Aditya Birla Group.
The two companies have filed a joint patent application for a new type of high tenacity fibre made from microbial cellulose called ‘Nullarbor’.
The fibre is finer than silk and stronger than conventional lyocell made from wood pulp, and the lyocell market is forecast to be valued at $US1.5 billon by 2024.
