ASX Small Cap Lunch Wrap: Who’s not getting off their high horse today?
In the UK, a petrol shortage is raging.
People are queueing for petrol, fighting over petrol, and putting the wrong petrol in their cars when panic buying petrol.
AA president, Edmund King said more than five times as many people as usual in the UK have mistakenly put diesel in their petrol engine or vice versa.
King said millions of drivers have changed their refuelling habits but once a tank is full it can’t be topped up.
“This short-term increase in demand should slow and allow forecourts time to restock,” he said.
But in the meantime, one man has come up with a novel solution – and he’s not rubbing it in at all.
The ASX 200 is up 96.60 points, or 1.37% at midday today to 7,295.00.
According to Morningstar, US Federal Reserve Chairman Jerome Powell helped boost investor confidence when he said the US economy has recovered sufficiently for the central bank to potentially announce the start of bond-purchase tapering at its next meeting.
Some investors say that cyclical stocks rallying in the face of rising interest rates shows that the economy is on a path to sustainable growth. “That’s really the next leg, can more cyclical oriented companies continue to grow earnings at the same pace coming out of the cyclical trough post-Covid?” said Tom Graff, head of fixed income and portfolio manager at Brown Advisory.
Pullbacks also can make overvalued stocks more affordable, some market participants said. “If you see these attractive names pull back, you are definitely going to use that as an opportunity to buy in,” said Sara Rajo-Miller, financial adviser and director at Miracle Mile Advisors. “They are still good names that people want to own.”
Bloomberg said energy prices continued to moderate in overnight trade following the recent move higher; Brent fell by US45 cents or 0.6% to US$78.64, Nymex crude price fell by US46 cents or 0.6% to US$74.83 – helped by a build in US inventories in the last week .
The trend however has been of higher oil, gas and coal prices due to concerns of an energy shortage in China. Whitehaven Coal (ASX:WHC) is up close to 30 per cent this month while Woodside (ASX:WPL) has jumped by 20 per cent.
Base metal prices fell by between 0.7-1.6%, and the gold futures price fell by US$14.60 an ounce or 0.8% to U$1,722.90 an ounce – with spot gold trading near US$1,725 an ounce.
And while weaker iron ore prices have been a weight on BHP (ASX:BHP) this month as China imposes steel production restrictions ahead of the February Winter Olympics, the company was up 0.95% today.
Here are the best performing ASX small cap stocks for September 30 [intraday]:
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The biggest small cap winner today was Qx Resources (ASX:QXR) up 54% after announcing the acquisition of a highly prospective lithium project in WA’s Pilbara region.
“Turner River represents an excellent opportunity for QX to secure a highly prospective lithium asset right within Australia’s premier address for such projects and nearby to two large, established lithium operations,” Chairman Maurice Feilich said.
“It potentially gives us exposure to minerals that are instrumental to the growth and development of the EV and clean energy sectors and in a tier 1 mining jurisdiction of Western Australia.”
“Equally appealing is the presence of tin and tantalum across the leases which gives QX exposure to another commodity where there has been considerable price appreciation.”
Next up was Mitre Mining (ASX:MMC) which rose 35% after listing today.
The NSW-based company has raised $5m from investors at 20c per share, which it will use to fund exploration at its Mitre Project in the Lachlan Fold Belt.
Australian Agricultural Projects (ASX:AAP) was up 32% on no news.
Wildcat Resources (ASX:WC8) jumped 23% after commencing RC drilling at the Red Panda lithium/caesium/ tantalum (LCT) pegmatite at the Bullabulling project.
Strategic Energy Resources (ASX:SER) dropped 26% after it announced that drilling is complete at the Cottage Iron Oxide Copper-Gold (IOCG) Prospect at its East Tennant Project – with the drill rig now en route to the Canobie Project in Queensland.
And down 25% was Amani Gold (ASX:ANL) off the back on an annual report detailing exploration plans at the Kebigada deposit at tits Giro gold project in the Democratic Republic of Congo.