Local stocks posted a solid session on Wednesday ahead of this week’s main event on global markets later tonight — the US Fed’s latest policy decision.

After plenty of forward guidance, the Fed is expected to formally announce the taper of its bond purchase program, and investors will be watching like hawks for any other clues on the bank’s post-COVID monetary policy outlook.

While the prospect of higher inflation (and tighter policy, including rate hikes) has been on the cards for a while now, equity markets are still happily climbing the ‘wall of worry’ as valuations hold at or near all-time highs.

Local stocks followed Wall Street higher, as ASX banking stocks bounced back with a gain of 1.22% to lead a broad-based rally across the major sectors.

Market moves were highlighted by more big gains in the lithium sector, as a number of stocks rallied strongly.

TODAY’S BIGGEST SMALL CAP WINNERS

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

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Code Company Price % Volume
WOO Wooboard Tech Ltd 0.002 100% 14,160,128
LVE Love Group Global 0.12 50% 179,617
RLT Renergen Limited 3.65 30% 1,031,767
FRS Forrestaniaresources 0.5 28% 3,403,265
MEM Memphasys Ltd 0.076 27% 11,011,517
AM7 Arcadia Minerals 0.25 25% 12,892,383
ANL Amani Gold Ltd 0.0025 25% 5,582,679
ARO Astro Resources NL 0.005 25% 700,000
NTL New Talisman Gold 0.0025 25% 3,830,008
LPD Lepidico Ltd 0.041 24% 146,491,506
CAE Cannindah Resources 0.395 23% 2,052,011
PAR Paradigm Bio. 2.53 23% 7,836,543
PTR Petratherm Ltd 0.058 21% 124,576
FBR FBR Ltd 0.048 20% 76,790,763
AKN Auking Mining Ltd 0.285 19% 1,441,519
S2R S2 Resources 0.19 19% 5,636,482
AZL Arizona Lithium Ltd 0.135 17% 89,420,040
1VG Victory Goldfields 0.205 17% 428,184
GGX Gas2Grid Limited 0.0035 17% 2,184,451
GTG Genetic Technologies 0.007 17% 1,241,713
KEY KEY Petroleum 0.0035 17% 1,325,000
HNR Hannans Ltd 0.051 16% 38,786,680
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Arcadia Minerals (ASX:AM7) held its gains from morning trade amid the ongoing lithium frenzy.

Investors responded to AM7’s decision to acquire three more licenses containing JORC resources abutting its ~3,438sqkm ‘Bitterwasser’ lithium project in Namibia.

Also rising strongly was energy stock Renergen (ASX:RLT), which announced a “significant increase” (around 600%) in methane and helium reserves at its flagship Virginia gas project in South Africa.

And healthcare stock Paradigm Biopharmaceuticals (ASX:PAR) closed more than 20% higher, after getting US FDA clearance of its IND (investigational new drug) application.

The approval gives PAR the all-clear to proceed with a Phase 3 trial for PPS/Zilosu — an injectable drug that treats pain associated with knee osteoarthritis.

TODAY’S BIGGEST SMALL CAP LOSERS

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

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Code Company Price % Volume
NPM Newpeak Metals 0.001 -33.3% 4,462,050
PCL Pancontinental Energ 0.001 -33.3% 4,733,290
BKY Berkeley Energia Ltd 0.22 -31.3% 1,461,939
REM Remsensetechnologies 0.39 -26.4% 5,584,076
OVT Ovato Limited 0.002 -20.0% 797,696
CCE Carnegie Cln Energy 0.0025 -16.7% 6,059,297
EN1 Engage:Bdr Limited 0.0025 -16.7% 5,628,878
AQX Alice Queen Ltd 0.011 -15.4% 12,769,821
KOR Korab Resources 0.044 -15.4% 18,464,020
SRN Surefire Rescs NL 0.011 -15.4% 13,876,959
GEN Genmin 0.14 -15.2% 189,069
TYR Tyro Payments 3.45 -15.0% 8,758,185
ERL Empire Resources 0.011 -14.6% 88,538
AFW Applyflow Limited 0.006 -14.3% 6,138,819
AEV Avenira Limited 0.025 -13.8% 32,780,596
CRL Comet Resources 0.019 -13.6% 24,967,142
SMI Santana Minerals Ltd 0.23 -13.2% 235,756
ECT Env Clean Tech Ltd. 0.02 -13.0% 21,693,566
MEB Medibio Limited 0.007 -12.5% 1,068,000
AR1 Australresources 0.175 -12.5% 10,955,573
BMR Ballymore Resources 0.21 -12.5% 401,226
SHP South Harz Potash 0.14 -12.5% 3,485,855
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Spain-based uranium developer Berkeley Energia (ASX:BKY) was a notable laggard in Wednesday trade, after announcing that it faces a possible courtroom battle. BKY said it had received a claim from the Singapore Mining Acquisition Co Pte Ltd (a subsidiary of the Oman Investment Authority) in connection with a US$65m convertible note.

Singapore Mining says the amount is “immediately payable”, alleging the investment agreement has been “frustrated” and/or a default event has occurred. In response, BKY said it “strongly disputes the allegations and claim made by OIA and is currently seeking legal advice”.

ANNOUNCEMENTS YOU MAY HAVE MISSED

Building robotics company FBR Ltd (ASX:FBR) provided an afternoon update on its Mexico contract, which saw the stock jump sharply at the opening bell.

FBR said the timeline for its Hadrian X and Fastbrick Wall System technologies to be “certified as compliant with all relevant codes and regulations in Mexico in approximately 12 months, dependent on third party processing time”.

Shares in FBR eased back slightly in afternoon trade to close around 20% higher.

Uranium stock Deep Yellow (ASX:DYL) released an update to its September quarter activities report from October 26, which it said included an increase to the company’s estimated ore reserves.

Following the release of its pre-feasibility study, DYL said the definitive feasibility study (DFS) “remains on track for completion in the December quarter 2022”.

The company is focused on progressing its Tumas project in Namibia “towards a development decision, in preparation for the anticipated uranium price increase expected around this time”, DYL said.

TRADING HALTS

Thursday

Alvo Minerals (ASX:ALV) – exploration update
MetalsTech (ASX:MTC) – acquisition

Friday

Emu (ASX:EMU) – capital raising
Fiji Kava (ASX:FIJ) – acquisition
E&P Financial (ASX:EP1) – legal proceedings

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