• The ASX 200 falls 2.6%  after Wall St rout 
  • Small caps recover manfully to be just 1% lower 
  • AQC is turning out be a hell of a ride

 

Firstly, the Benchmark ASX 200 is down about 2.5% on Wednesday. It’s a fair whack, but hardly worse than a bad case of athlete’s foot or the death of a much loved pet.

This is the way it went for the ASX 200 today:

At 10am one can see (below) the benchmark fell out of bed and lay there. On the floor. Lolling.

Around 11ish, the ‘benchmark’ looked like it was thinking about getting up before lunch but just lay there instead.

Via Google Finance

 

Not great, no. But certainly not the $60 billion bloodbath that panic stricken punters have been screaming about. (It’s more like $59 billion and we had worse than that in June.  Although, TBH June certainly did suck.)

This is the way it went for the small cap index today:

10 am: The Emerging Companies (XEC) index falls out of bed.

From the instant it touches the floor, this brave little index writhes and struggles like a bastard.

Look at it go! (below) … straining like a legend against the chains that keep it from freedom.

Ends the day a mere 0.97% down.

Via Google Finance

That’s right: Wall Street ends in calamity. The ASX benchmark lays in a puddle of its own shame … And small caps give away a bare 1%.

Ha. And that’s how we emerging companies people roll.

1%? We throw our car keys in the salad bowl and swing a lot more than that two or three times every week.

 

On ‘They Hit the Wall’ Street

It was harder on the allies and not just because they’re softer but because I think they might deserve it.

Wall Street chose to hope and then put money on the hope. And that’s a mugs game when central bankers and economists are doing the talking and overpaid analysts and underfed media are doing the translating.

The unedifying reaction to inflation that was indeed worse-than-expected, but cheese and crackers America – it was expected.

The S&P 500 closed 4.3% lower
The Nasdaq fell 5.1% and;
The Dow Jones Industrial Average lost 3.9% also;
US 2-year yields are higher at 3.75% and longer than the 10’s.

But not all is lost…

It should be an interesting day of volatile trade when Wall Street opens in a few hours.. now that the Brit’s Office for National Statistics suggests inflation in the UK slowed in August – the CPI (consumer price index) rising rose 9.9% annually, an ugly number on its lonesome but a beat on consensus and a slight beat on July’s awful figure of 10.1%.

US Futures are all 0.1% higher at 1630 AEST.

 

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks [intraday]:

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

Wordpress Table Plugin

Story of the day is the Tetris Affair over at Australian Pacific Coal (ASX:AQC)

Our Man in Denmark, Reuben Adams, broke the news here this morning of a “newish player entering the the game to compete for the formerly unloved coal stock.”

The JV comprising private Aussie co Tetra and Javelin – which calls itself “one of the world leaders in coal” – is proposing a JV between Tetra (40%) and the shellshocked AQC (60%) with respect to the mothballed Dartbrook coal project.

Unlike previous bids from Nathan Tinkler and M Resources this is a JV proposal, not a change-of-control transaction.

“Given the non-binding indicative proposal needs the support of the [major shareholder] Trepang Parties to proceed, AQC intends to seek advice from the Trepang Parties as to whether the Trepang Parties are willing to support the proposal,” says the AQC board, which probably hasn’t worked this hard in years.

“Shareholders are advised to take no action with respect to the proposal at this time.”

Chances are Trepang will be OK with this offer, seeing as directors of Tetra had already been nominated by Trepang to be appointed as directors of AQC pursuant to a notice under s249D of the Corporations Act.

Health stock Biotron (ASX:BIT) jumped 6% this morning with human trials of its lead antiviral drug BIT225 against COVID-19 kicking off as a sub-study to the ongoing Phase 2 BIT225-010 HIV-1 clinical trial currently in progress at sites in Thailand.

That trial has already enrolled 27 people, and those who are diagnosed with symptomatic COVID-19 infection during the six-month treatment period will now be enrolled in the sub-study.

The sub-study will look into the SARS-CoV-2 viral load and clinical symptoms over a 28-day period.

 

ASX SMALL CAP LAGGARDS

Here are the best performing ASX small cap stocks [intraday]:

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

Wordpress Table Plugin

 

A FEW YOU MAY’VE MISSED TODAY

Health and wellness company Wellnex Life (ASX: WNX) says it’s targeting a $2 million cap raise via a share purchase plan to progress its joint venture with OneLife Botanicals – the goal to be one of the first companies to offer an over-the-counter medical cannabis products in Australia.

The share purchase plan is now open to shareholders at 7.5 cents/share representing a 19.7% discount to 5-day VWAP.

Funds raised will also be used to finance the inventory required for launching new products including Performance Inspired and Pharmacy Own along with continuing to progress further growth avenues such as its e-commerce channel.

The company is forecasting a record-breaking Q1 FY23 with the company on track to meet its guidance for FY23 of $29 million in revenue.

Power Minerals (ASX:PNN) has announced its own $5.5 mn placement to accelerate and increase work programs at the Salta Lithium Project.

Firm commitments are in place from sophisticated, professional and institutional investors, the company says.

With a handy cash balance post-raise of some ~$8.27m, PNN can now fully fund the next phase of work programs across its project portfolio

Including:

  • Resource definition drilling and to advance existing MoU’s at Salta Lithium Project;
  • Further drilling and test work at Eyre Peninsula Kaolin Halloysite Project; and
  • Progress project access for Musgrave Ni-Cu-Co-PGE Project in South Australia

 

TRADING HALTS

Adherium Limited (ASX: ADR) – Capital raise