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ASX Small Cap Lunch Wrap: Who’s ‘running hot’ today?
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Good news for investors – the US Federal Reserve is indicating it will let the economy ‘run hot’ for the foreseeable future to promote recovery.
In an anticipated keynote speech to the Jackson Hole symposium, US Federal Reserve chair Jerome Powell said the central bank would tolerate inflation that rises above 2 per cent for short periods.
Generally, policymakers believe that an acceptable inflation rate is around 2 per cent or a bit below.
But if inflation is too low the economy is in danger of falling into deflation. That means prices and wages are generally falling — a phenomenon associated with very weak economic conditions.
In other words, the Fed is happy to keep its extraordinary stimulus measures in place until the crippled economy has sufficiently recovered.
US share markets mostly rose on Thursday in response.
This announcement largely just ‘codifies’ the extremely dovish policy strategy the Fed has already been following, Oxford Economics chief US financial economist Kathy Bostjancic says.
“However, it signals that the Fed will be willing to let the economy ‘run hot’ in order to promote broad and inclusive employment gains even if inflation temporarily and moderately rises above 2 per cent,” she says.
“We forecast it will take until mid-2024 before the unemployment rate is low enough and the inflation rate high enough to justify rate lift-off.”
WINNERS
Here are the best performing ASX small cap stocks at 12pm Friday August 28:
Swipe or scroll to reveal the full table. Click headings to sort.
| CODE | COMPANY | PRICE | CHANGE | MARKET CAP |
|---|---|---|---|---|
| IAM | Intiger Group | 0.004 | 300.00% | $7.7M |
| GGX | Gas2grid | 0.004 | 100.00% | $5.5M |
| DDT | DataDot Technology | 0.007 | 87.50% | $8.8M |
| WTL | Wt Financial Group | 0.053 | 76.67% | $8.8M |
| PBH | Pointsbet Holdings | 11.85 | 58.00% | $1.8B |
| MRD | Mount Ridley Mines | 0.003 | 50.00% | $6.7M |
| MNB | Minbos Resources | 0.003 | 50.00% | $17.0M |
| GWR | GWR Group | 0.105 | 40.00% | $29.3M |
| WBE | Whitebark Energy | 0.004 | 33.33% | $16.2M |
| SHH | Shree Minerals | 0.01 | 30.00% | $9.9M |
| PRT | Prime Media Group | 0.115 | 26.37% | $42.1M |
| CLZ | Classic Minerals | 0.003 | 25.00% | $26.1M |
| LCY | Legacy Iron Ore | 0.005 | 25.00% | $31.2M |
| BUD | Buddy Platform | 0.083 | 20.29% | $215.4M |
| ROO | Roots Sustainable Agriculture | 0.029 | 26.09% | $4.7M |
| HSN | Hansen Tech | 3.88 | 22.01% | $763.2M |
| CVV | Caravel Minerals | 0.067 | 19.64% | $16.6M |
| SMI | Santana Minerals | 0.0035 | 16.67% | $8.1M |
| AAJ | Aruma Resources | 0.007 | 16.67% | $8.0M |
| BCT | Bluechiip | 0.063 | 12.50% | $36.8M |
| CBY | Canterbury Resources | 0.11 | 15.79% | $10.1M |
| SHM | Shriro Holdings | 0.635 | 15.45% | $59.9M |
A restructure at financial advisor WT Financial Group (ASX:WTL) has delivered “return to operating profit and positive operating cashflow” despite the impact of COVID-19, the company says.
Junior iron ore developer GWR Group (ASX:GWR) has scored all-important mining approvals from the WA state government, paving the way for first production at its Wiluna West project.
Buddy Technologies’ (ASX:BUD) LIFX brand has announced the world’s first “disinfecting anti-bacterial smart light”, which it expects to be released to market in Q4.
LOSERS
Here are the worst performing ASX small cap stocks at 12pm Friday August 28:
Swipe or scroll to reveal the full table. Click headings to sort.
| CODE | COMPANY | PRICE | CHANGE | MARKET CAP |
|---|---|---|---|---|
| ANW | Aus Tin Mining | 0.001 | -33.33% | $3.1M |
| CFO | Cfoam | 0.027 | -25.00% | $5.2M |
| RNE | Renu Energy | 0.02 | -23.08% | $2.4M |
| MCX | Mariner Corporation | 0.08 | -20.00% | $4.8M |
| MLS | Metals Australia | 0.002 | -20.00% | $8.0M |
| TSC | Twenty Seven | 0.005 | -16.67% | $7.4M |
| SBR | Sabre Resources | 0.005 | -16.67% | $6.3M |
| AO1 | Assetowl | 0.011 | -15.38% | $5.4M |
| MRQ | MRG Metals | 0.006 | -14.29% | $7.4M |
| LIT | Lithium Australia | 0.007 | -12.50% | $38.7M |
| PWN | Parkway Minerals | 0.007 | -12.50% | $12.0M |
| BCC | Beam Com | 0.215 | -12.24% | $25.7M |
| NXM | Nexus Minerals | 0.077 | -11.49% | $11.4M |
| INP | Incentiapay | 0.039 | -11.36% | $25.6M |
| AVE | Avecho Bio | 0.008 | -11.11% | $12.8M |
| BLG | BluGlass | 0.081 | -10.99% | $58.3M |
| LKE | Lake Resources | 0.034 | -10.53% | $22.8M |
| BOA | Boadicea Resources | 0.24 | -9.43% | $13.3M |
