Closing Bell: ASX limps into the close while a post-COVID 'meme stonk' roars higher

It was a lacklustre session for local stocks in Tuesday trade, as the ASX 200 limped into the close with a fall of 0.77% while the microcap Emerging Companies index traded flat.

In an environment of rising bond yields, the broader tone is still risk-off, with US stock futures providing no clear direction as to what might happen on Wall Street tonight.

In Australia, markets were dragged lower by consumer stocks — from the major grocers to retail stores — as more companies report staff shortages and supply chain disruptions due to the rapid spread of Omicron.

Crypto markets drifted sideways in Asian trade, as Bitcoin and Ethereum look to hold above key support levels of US$40,000 and US$3,000 respectively.

TODAY’S BIGGEST SMALL CAP WINNERS

(Stocks highlighted in yellow rose after making announcements during the trading day).

Scroll or swipe to reveal table. Click headings to sort.

Code	Company	Price	%	Volume
NPM	Newpeak Metals	0.002	100.0%	643,770
VMG	VDM Group Limited	0.002	100.0%	1,302,779
WOO	Wooboard Tech Ltd	0.002	33.3%	1,604,512
MDI	Middle Island Res	0.16	28.0%	2,295,971
CCE	Carnegie Cln Energy	0.0025	25.0%	7,803,952
CGB	Cann Global Limited	0.0025	25.0%	6,074,396
EN1	Engage:Bdr Limited	0.0025	25.0%	1,000,000
PCL	Pancontinental Energ	0.0025	25.0%	56,186,070
PNV	Polynovo Limited	1.785	24.8%	8,932,292
ROO	Roots Sustainable	0.006	20.0%	796,648
QXR	Qx Resources Limited	0.045	18.4%	30,394,808
PRM	Prominence Energy	0.0105	16.7%	13,641,593
DDD	3D Resources Limited	0.0035	16.7%	2,175,000
GNM	Great Northern	0.007	16.7%	308,494
MBK	Metal Bank Ltd	0.007	16.7%	2,104,707
ZNO	Zoono Group Ltd	0.46	16.5%	738,886
FRS	Forrestaniaresources	0.4	15.9%	650,112
ESS	Essential Metals Ltd	0.295	15.7%	16,703,880
PF1	Pathfinder Resources	0.335	15.5%	186,056
HCD	Hydrocarbon Dynamic	0.015	15.4%	200,285
NAE	New Age Exploration	0.015	15.4%	80,761,743
VOR	Vortiv Ltd	0.03	15.4%	231,122
AR1	Australresources	0.19	15.2%	266,646
MGT	Magnetite Mines	0.038	15.2%	40,005,286
QGL	Quantum Graphite	0.19	15.2%	493,003

Investors cheered on a trading update from ~$1bn biotech Polynovo (ASX:PNV), after the medical devices company reported strong conditions at its US operations. The company increased its quantum of sales accounts in the US to 154, and monthly sales for Novosorb — its patented bioabsorbable polymer technology — rose above US$2m for the first time in December.

Cybersecurity firm Vortiv (ASX:VOR) also gained ground, after advising that its India-based subsidiary Transaction Solutions International (India) Pvt. Ltd is on track to book EBITDA of $9.5m – $10.5m in FY22. “Management have also advised that TSI has been short listed for several new ATM contracts, further announcements will be made in due course,” Vortiv said.

And lithium/gold play Essential Metals (ASX:ESS) went on a run to 30.5c, with the stock now having almost doubled since December 20 on minimal news flow. Today’s rally prompted a price query from the ASX, to which ESS responded that it wasn’t aware of any news which would prompt the surge.

TODAY’S BIGGEST SMALL CAP LOSERS

(Stocks highlighted in yellow fell after making announcements during the trading day).

Scroll or swipe to reveal table. Click headings to sort.

Code	Company	Price	%	Volume
WCN	White Cliff Min Ltd	0.0185	-26.0%	27,347,000
ALT	Analytica Limited	0.0015	-25.0%	250,000
ANL	Amani Gold Ltd	0.0015	-25.0%	15,581,258
NTL	New Talisman Gold	0.0015	-25.0%	1,253,900
RCR	Rincon	0.14	-20.0%	189,550
MSI	Multistack Internat.	0.04	-18.4%	160,128
IRX	Inhalerx Limited	0.083	-17.0%	16,524
YPB	YPB Group Ltd	0.0025	-16.7%	521,557
BMO	Bastion Minerals	0.205	-16.3%	163,861
MAD	Mader Group Limited	1.98	-14.7%	101,877
PNX	PNX Metals Limited	0.006	-14.3%	13,636,000
M2M	Mt Malcolm Mines	0.125	-13.8%	296,781
GWR	GWR Group Ltd	0.19	-13.6%	811,679
ARB	ARB Corporation.	46.15	-12.6%	732,503
T3D	333D Limited	0.0035	-12.5%	4,978,483
TMX	Terrain Minerals	0.007	-12.5%	335,086
TPD	Talon Energy Ltd	0.007	-12.5%	2,224,295
KFM	Kingfisher Mining	0.21	-12.5%	2,542,006
FAU	First Au Ltd	0.0105	-12.5%	4,176,954
BXN	Bioxyne Ltd	0.025	-12.3%	111,852
ASP	Aspermont Limited	0.022	-12.0%	151,800

ANNOUNCEMENTS YOU MAY HAVE MISSED

Semiconductor technology company Brainchip (ASX:BRN) is surging again on strong volumes, climbing to new all-time highs above $1 from the ~40c level in early October. The company — which develops semiconductor technology based on the neural pathways in the brain — was identified in research last year as one of 11 ASX ‘meme stonks’. The recent gains follow a steady run of patent updates and licensing agreements in Q4. The increased trading activity prompted a query from the ASX this morning, to which BRN said it wasn’t aware of any recent news to prompt the surge. At today’s close of $1.08, BRN shares are up more than 2,500% since March 30, 2020.

Shortly after midday EST, Mt Malcom Mines (ASX:M2M) said reverse circulation drilling had uncovered further shallow gold mineralisation at its Golden Crown project. However, shares in the company fell by more than 10% in afternoon trade to 12.5c — off M2M’s 12-month highs of almost 20c reached last year.

Explorer Orion Minerals (ASX:ORN) climbed by around 4%, after reporting assay results from the first four drill holes of its maiden drilling program at the Okiep copper project in South Africa. ORN said the results exceeded expectations. “Three holes were drilled to confirm historically reported mineralisation, returning high-grade results including 10.36m at 1.84% Cu, 5.71m at 1.93% Cu and 4.69m at 2.05% Cu,” the company said.