For many decades September has been the worst month of the year for global stocks, on average.

Theories abound, but no one really knows why the ‘September Effect’ exists.

This year, September was about the time that five months of rampant global market enthusiasm began to wane.

The major Wall Street indexes recorded their first monthly declines since March, as did our own benchmark ASX200.

The amount of cash raised on the ASX in September — $2.28bn  — was also less than half of August’s total.

But it’s October now — Is the worst over? r/wallstreetbets has theory.

Secret message in ‘Wake me up when September ends” from r/wallstreetbets

To Markets…

Despite a positive session on Wall Street, the ASX200 started Friday’s session in the red, down 56 points, or 0.96 per cent, to 5,816 points by 12pm AEST.

Materials, energy and healthcare are declining most, with IT and property advancing, according to CommSec.

 

WINNERS

Here are the best performing ASX small cap stocks at 12pm Friday, October 2:

Swipe or scroll to reveal the full table. Click headings to sort.

CODE NAME PRICE % CHANGE MARKET CAP
RAN Range International 0.024 71 $ 5,059,200.22
CCE Carnegie Clean Energy 0.0015 50 $ 11,141,452.45
MPP Metro Performance Glass 0.295 48 $ 37,075,617.20
PPY Papyrus Australia 0.019 36 $ 4,232,815.99
OEX Oilex 0.002 33 $ 6,179,445.00
CFO Cfoam 0.031 24 $ 4,804,350.65
TAO TAO Commodities 0.27 20 $ 7,062,000.08
MLS Metals Australia 0.003 20 $ 9,120,881.94
PUR Pursuit Minerals 0.012 20 $ 4,801,093.16
VRC Volt Resources 0.012 20 $ 20,205,553.73
JAY Jayride Group 0.19 19 $ 16,816,362.24
ADY Admiralty Resources 0.019 19 $ 18,546,155.18
ENV Enova Mining 0.026 18 $ 7,450,494.57
RWD Reward Minerals 0.165 18 $ 22,763,447.98
BUY Bounty Oil & Gas 0.02 18 $ 18,638,816.69
EMT Emetals 0.021 17 $ 7,203,600.00
CE1 Calima Energy 0.007 17 $ 13,004,845.36
YPB YPB Group 0.0035 17 $ 8,777,467.85
NC6 Nanollose 0.092 16 $ 8,354,249.29
NML Navarre Minerals 0.185 16 $ 86,790,744.16
OTW Over The Wire 4.91 15 $ 220,031,377.08

 

Banana frond textile maker Papyrus (ASX:PPY) gained a new strategic investor and the share price went … nuts.

The $500,000 investment by small cap fund L39 Capital was done at a 25 per cent discount to the 15 day volume weighted average price, but that didn’t stop the stock surging 36 per cent in morning trade.

Former $3m market cap minnow Tao Commodities (ASX:TAO) has continued to rise after inking an option to buy the ‘Titan’ titanium and zircon mineral sands project in the US. The stock is now up 130 per cent since the middle of September.

Explorers Volt Resources (ASX:VRC) and Pursuit Minerals (ASX:PUR) have bounced back from failed gold project acquisition deals.

 

LOSERS

Here are the worst performing ASX small cap stocks at 12pm Friday, October 2:

Swipe or scroll to reveal the full table. Click headings to sort.

CODE COMPANY PRICE % CHANGE MARKET CAP
CML Chase Mining 0.015 -53 $ 10,198,476.83
MSB Mesoblast 3.37 -34 $ 2,979,860,842.40
ANW Aus Tin Mining 0.001 -33 $ 5,161,327.76
ECT Env Clean Tech 0.001 -33 $ 14,401,549.18
NWM Norwest Minerals 0.105 -32 $ 9,138,964.15
CLZ Classic Minerals 0.0015 -25 $ 26,084,103.96
PSL Paterson Resources 0.003 -25 $ 16,013,417.82
QFY Quantify Tech 0.0015 -25 $ 4,017,099.49
NME Nex Metals Exploration 0.058 -19 $ 17,343,938.23
PGY Pilot Energy 0.029 -17 $ 3,707,514.09
BUX Buxton Resources 0.075 -17 $ 12,244,988.88
GWR GWR Group 0.185 -16 $ 56,033,168.18
BEM Blackearth Minerals 0.055 -15 $ 7,387,608.87
BSM Bass Metals 0.003 -14 $ 13,747,565.07
GLA Gladiator Resources 0.003 -14 $ 8,147,419.60
KEY KEY Petroleum 0.006 -14 $ 13,775,496.88
ARO Astro Resources 0.007 -13 $ 11,703,295.30
HYD Hydrix 0.033 -11 $ 46,573,072.90
RLG Roolife Group 0.026 -10 $ 11,502,678.23

 

Chase Mining (ASX:CML) was punished after six deep drill holes at the historic Lorraine mine in Canada failed to hit significant gold mineralisation.

And Mesoblast (ASX:MSB) shares have plunged to their lowest level since April after US regulators declined to immediately approve their stem cell treatment for graft-versus-host disease in children.