Analysts and investors are increasingly hopeful of a global economic recovery as COVID-19 lockdowns in major economies are slowly lifted.

Ben May, director of global macro research at Oxford Economics, says that the pace of contraction for major economies in Q1 “is quite well correlated with the average stringency of their domestic lockdown restrictions in Q1 as a whole”.

This points to a gradual revival in economic activity in Q3 as restrictions are eased. Emphasis on gradual.

“Any lifting of restrictions will likely be followed by a period of close monitoring of COVID-19 statistics before the rules are relaxed further,” May says.

“Indeed, while much has been made of the steps by policymakers to begin the normalisation process in places such as the US, Austria, Denmark, Germany, and Norway, the shifts have so far been cautious, as they were in China.

“Even if April does prove to be the peak month for lockdowns at a global level and therefore the low point for activity, the revival from here is likely to be steady rather than spectacular.”

It’s going to be an eventful day/ week for Australian investors, as the government decides how to reopen the economy:

The local bourse is now up for the second day in a row, with the benchmark ASX 200 index improving ~80 points or 1.5 per cent to 5400 points by lunchtime Tuesday.

 

SMALL CAP WINNERS

Here are the best performing ASX small cap stocks at 12pm Monday Tuesday 5:

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

CODE COMPANY PRICE CHANGE MARKET CAP
NVU Nanoveu 0.175 257.14% $21.2M
XST Xstate Resources 0.002 100.00% $1.4M
AXE Archer Exploration 0.31 67.57% $66.9M
FGO Flamingo 0.002 50.00% $1.1M
AWV Anova Metals 0.012 50.00% $8.3M
ASN Anson Resources 0.026 44.44% $10.8M
CMT Metalicity 0.003 50.00% $1.5M
MBK Metal Bank 0.01 42.86% $8.8M
ACB A-Cap Energy 0.017 41.67% $14.8M
HLX Helix Resources 0.007 40.00% $3.4M
ADV Ardiden 0.004 33.33% $7.2M
KEY Key Petroleum 0.004 33.33% $6.8M
SCL Schrole 0.017 30.77% $14.3M
MNW Mint Payments 0.005 25.00% $4.6M
ABV Advanced Braking Technology 0.025 25.00% $9.5M
CHK Cohiba Minerals 0.006 20.00% $4.0M
RIM Rimfire Pacific Mining 0.006 20.00% $9.1M
GED Golden Deeps 0.006 20.00% $1.7M
NSX Nsx 0.12 20.00% $26.9M

 

NANOVEU (ASX:NVU) +250%

In mid-April, telecom tech company Nanoveu said it was running tests to assess the effectiveness of an antiviral smartphone case and screen protector that had shown promising results against the coronavirus.

This saw the company’s shares rise from crisis lows beneath 3c to more than 6c.

This morning, Nanoveu had some early but positive results — its antimicrobial technology was “demonstrated to be effective against a coronavirus strain emerging from mice, which is a surrogate for human coronaviruses”.

ARCHER MATERIALS (ASX:AXE) +65%

The ASX’s only quantum computing stock, Archer Materials (ASX:AXE) has signed a non-monetary agreement with computing behemoth IBM.

Archer is now an “ecosystem partner” in the invitation-only ‘IBM Q network’, a global community of stakeholders led by IBM seeking to advance quantum computing towards commercialisation.

METAL BANK (ASX:MBK) +42%

Gold explorer Metal Bank has defined a 7sqkm target at its Eidsvold project in southeast Queensland with “similar scale and geophysical response” to the historic Mt Leyshon deposit.

Mt Leyshon produced more than 3 million ounces of gold and substantial amounts of silver, mostly between 1987 and 2001.

 

SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks at 12pm Tuesday May 5:

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

CODE COMPANY PRICE CHANGE MARKET CAP
RFN Reffind 0.001 -50.00% $1.0M
XTC Xantippe Resources 0.002 -33.33% $6.7M
FPL Fremont Petroleum 0.003 -25.00% $5.0M
RAG Ragnar Metals 0.004 -20.00% $1.3M
AZI Alta Zinc 0.004 -20.00% $8.8M
JXT Jaxsta 0.04 -20.00% $9.9M
APC Australian Potash 0.064 -16.88% $25.7M
MTH Mithril Resources 0.006 -14.29% $2.9M
SXA Strata-X Energy 0.036 -14.29% $4.5M
EGR Ecograf 0.055 -14.06% $16.8M
ODM Odin Metals 0.032 -13.51% $8.1M
LCT Living Cell Technologies 0.013 -13.33% $7.4M
PDI Predictive Discovery 0.061 -12.86% $39.3M
ECG eCargo Holdings 0.022 -12.00% $13.6M
IVX Invion 0.008 -11.11% $44.0M
TOE Toro Energy 0.008 -11.11% $20.9M
GWR GWR Group 0.065 -10.96% $16.6M

 

A few companies fell on cap raise announcements, including Australian Potash (ASX:APC) and popular gold explorer Predictive Discovery (ASX:PDI).

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