- ASX 200 climbs despite weak US leads
- Small caps crush it, up 1.45%
- Iron ore futures dip as China find another COVID-zero scare
Local markets have defied weak leads out of the states on Tuesday to close unexpectedly higher.
The S&P/ASX Emerging Companies (XEC) index was well over 1.4% higher at the end of afternoon business while the benchmark ASX 200 also beat a path to a 0.7% gain on the back of some terrific strength in the volatility of global energy prices.
Overnight, the Dow Jones index ended 0.6% lower, the S&P 500 lost 0.7% and the tech-heavy Nasdaq feel 1% as US traders opened the week in anxious mode, still a bit brittle after the central bank excesses put on headline display at Jackson Hole.
The US Federal Reserve’s renewal of its aggressive posture on combatting inflation also played out in the bond market.
The US two-year bond yields topped a 15-year high smacking at the lips of 3.5%. The 10-year US bond yields rose to 3.11%.
But it’s the ferocity with which oil prices climbed overnight that’s hit the momentary reset button on Asian markets. Brent crude and the US Nymex both lifted over 4%.
At the same time the bottom has fallen out of the EU’s “unbearably high” gas prices. Germany says its storage facilities were filling up faster than expected, welcome news as Gasprom’s Nordstream connection is severed for a second time in lieu of maintenance checks.
Dutch front-month futures plunged nearly 20% according to NAB’s energy strategist Rodrigo Catril.
Meanwhile the iron ore price has lost between 3 and 5% on the Singapore and dalian futures boards. The plunge follows more crappy zero-COVID China news, this time the shutdown of Shenzhen’s quite incredibly large – possibly the biggest in the world – Hua Qiang Bei electronics and white good market, the centre of a COVID-19 outbreak.
The news has reportedly impacted rebar and steel prices on the Shanghai futures exchange.
Hong Kong’s Hang Seng, just round the corner from Shenzhen sank 1.5% with the key Hang Seng Tech Index well over 2% the worse.
ASX SMALL CAP LEADERS
Here are the best performing ASX small cap stocks:
Swipe or scroll to reveal full table. Click headings to sort:
| Code | Company | Price | % | Volume | Market Cap |
|---|---|---|---|---|---|
| AHI | Adv Human Imag Ltd | 0.245 | 96% | 5,391,741 | $21,031,173 |
| KFM | Kingfisher Mining | 0.41 | 52% | 6,611,608 | $9,246,150 |
| NTL | New Talisman Gold | 0.003 | 50% | 1,003,317 | $6,254,451 |
| BYI | Beyond International | 0.46 | 48% | 45,011 | $19,014,460 |
| AD1 | AD1 Holdings Limited | 0.025 | 47% | 3,519,270 | $11,488,844 |
| FNX | Finexia Financialgrp | 0.07 | 40% | 5,000 | $8,105,355 |
| WC1 | Westcobarmetals | 0.195 | 39% | 2,308,873 | $4,305,011 |
| RR1 | Reach Resources Ltd | 0.006 | 33% | 25,780,716 | $8,595,228 |
| GTR | Gti Energy Ltd | 0.021 | 31% | 55,435,342 | $24,087,737 |
| WCN | White Cliff Min Ltd | 0.021 | 31% | 23,022,065 | $10,457,654 |
| TPC | TPC Consolidated Ltd | 2.6 | 30% | 14,947 | $22,751,226 |
| IND | Industrialminerals | 0.365 | 24% | 109,079 | $8,673,000 |
| DM1 | Desert Metals | 0.27 | 23% | 665,136 | $10,558,200 |
| THR | Thor Mining PLC | 0.011 | 22% | 2,478,640 | $9,680,080 |
| E2M | E2 Metals | 0.165 | 22% | 4,306 | $26,882,864 |
| EL8 | Elevate Uranium Ltd | 0.55 | 22% | 1,590,280 | $123,973,073 |
| TPP | Tempo Australia | 0.055 | 22% | 65,100 | $16,386,098 |
| AGE | Alligator Energy | 0.069 | 21% | 45,056,958 | $188,177,006 |
| BMN | Bannerman Energy Ltd | 2.35 | 21% | 1,554,325 | $291,751,606 |
| BIR | BIR Financial Ltd | 0.036 | 20% | 7,011,994 | $6,043,085 |
| BUR | Burleyminerals | 0.12 | 20% | 25,000 | $3,432,305 |
| CI1 | Credit Intelligence | 0.12 | 20% | 157,122 | $8,013,702 |
| CT1 | Constellation Tech | 0.006 | 20% | 564,000 | $7,356,002 |
| TSC | Twenty Seven Co. Ltd | 0.003 | 20% | 8,577,818 | $6,652,035 |
| LER | Leaf Res Ltd | 0.031 | 19% | 1,418,660 | $29,711,487 |
Advanced Human Imaging (ASX:AHI) has had its cracker run put on hold, screaming into a trading halt this morning at 24 cents a share.
AHI says there’s a looming announcement vis a vis an acquisition after the ASX slapped a pricing query on its shares after they escalated quickly, more or less doubling on Monday.
Shares in the company were paused by the ASX Tuesday morning before they were halted in response to a pricing letter.
Up well over 40% is the TV production company Beyond International (ASX:BYI) has had a cracker year off the back of growth in production fees and recoveries from joint venture productions, an increase in gross margins from the sale of previously written off programs (delivering 100% gross contribution) as well as an increase in copyright revenue.
And the BYI content outlook is quite good – some of the programs commissioned and in production in Australia for the world market in the 2022 financial year include: Matt Wright’s Wild Territory for Netflix and Network Nine, On The Record for Stan, The Invisibles Series 2 for Disney+/National Geography, Animals Aboard for the Seven Network and Beyond Rights and in some quite poignant timing, John Farnham – Finding The Voice for Sony Pictures Releasing and the Seven Network.
Shares in Desert Metals (ASX:DM1) soared this morning after follow-up drilling outlined an emerging rare earths system at its Innouendy project in Western Australia.
Initial XRF and visual observations – while no replacement for laboratory analysis – are encouraging and suggest that an extensive, near surface REE system hosted in clay is present.
This is particularly encouraging for as the clays which host the mineralisation have been intersected up to a thickness of 80m in some parts.
Step out drilling traverses across 20km of strike length have intersected both thick clays and large volumes of mafic and ultramafic rock though lab analysis will be required to determine whether these units host significant mineralisation.
ASX SMALL CAP LAGGARDS
Here are the worst performing ASX small cap stocks:
Swipe or scroll to reveal full table. Click headings to sort:
| Code | Company | Price | % | Volume | Market Cap |
|---|---|---|---|---|---|
| MEB | Medibio Limited | 0.001 | -33% | 400,000 | $4,980,891 |
| ICN | Icon Energy Limited | 0.017 | -26% | 3,763,808 | $17,359,710 |
| JTL | Jayex Technology Ltd | 0.007 | -22% | 465,895 | $2,243,057 |
| ADS | Adslot Ltd. | 0.011 | -21% | 1,192,215 | $30,862,701 |
| SBR | Sabre Resources | 0.0055 | -21% | 83,895,715 | $19,528,117 |
| AVW | Avira Resources Ltd | 0.004 | -20% | 1,866,450 | $10,593,950 |
| CCE | Carnegie Cln Energy | 0.002 | -20% | 401,173 | $37,756,434 |
| MCT | Metalicity Limited | 0.004 | -20% | 2,735,486 | $17,293,530 |
| AFL | Af Legal Group Ltd | 0.31 | -19% | 1,593,888 | $29,387,393 |
| HHR | Hartshead Resources | 0.038 | -19% | 16,892,505 | $87,174,290 |
| MYE | Metarock Group Ltd | 0.365 | -19% | 309,206 | $58,946,646 |
| IEC | Intra Energy Corp | 0.009 | -18% | 51,114 | $6,663,597 |
| GRE | Greentechmetals | 0.23 | -18% | 454,366 | $8,758,400 |
| CTT | Cettire | 0.72 | -18% | 5,327,808 | $333,583,443 |
| AMS | Atomos | 0.235 | -18% | 4,226,225 | $63,370,202 |
| NRX | Noronex Limited | 0.048 | -17% | 10,269,267 | $9,886,668 |
| LNY | Laneway Res Ltd | 0.005 | -17% | 4,234,417 | $39,228,098 |
| ROG | Red Sky Energy. | 0.005 | -17% | 1,000,864 | $31,813,363 |
| SYN | Synergia Energy Ltd | 0.0025 | -17% | 1,212,510 | $25,253,372 |
| TTB | Total Brain Ltd | 0.04 | -17% | 660,424 | $6,418,614 |
| VTG | Vita Group Ltd | 0.165 | -15% | 3,509,901 | $34,295,007 |
| EMU | EMU NL | 0.011 | -15% | 2,628,296 | $7,147,588 |
| BTR | Brightstar Resources | 0.018 | -14% | 55,000 | $13,584,078 |
| KWR | Kingwest Resources | 0.056 | -14% | 754,792 | $18,312,243 |
| KSS | Kleos | 0.32 | -14% | 363,115 | $66,054,574 |
WHAT YOU MAY’VE MISSED TODAY
We’re all still neck deep in companies crowing about their FY22 wins (or making shaky excuses like “there was a pandemic” or “the pigs ate the accountant” if things went south), but there are some quickies in amongst it all this arvo you might have missed.
That includes WiseTech Global (ASX:WTC), which noted that there’s been a certain amount of speculation in the media (those gossipy old ratbags…) about a possible acquisition.
Wisetech’s announcement says “As stated in the recent results announcement on 24 August 2022, part of the Company’s strategy is to continue to expand through tuck-in acquisitions and potential strategically significant acquisition opportunities. Consistent with this strategy, WiseTech continues to evaluate a number of opportunities. WiseTech will continue to keep the market informed in line with its continuous disclosure obligations”.
Which is a lot of words for “Shut up, we’ll tell you when we’re ready.”
Meanwhile, Security Matters (ASX:SMX) has asked for an extension on its homework, needing a few more days to get things ready to reveal the Appendix 4D and half-year accounts.
No doubt these things are complicated enough at the best of times, but the company is also trying to coordinate with their people in the US, which means at least two more days of arguing over using “Australian English” or “American English” spelling in the reports.
Carnavale Resources (ASX:CAV) chief executive officer Humphrey Hale says the digger’s wrapped up its third aircore drill program which was aimed at closing up the drill spacing at its Ora Banda South gold project near Kalgoorlie.
The program of 105 holes totalling 8,885m follows on previous wide-spaced drilling which returned significant, shallow bedrock results which confirmed the presence of a gold-bearing systems over a strike length of 15km.
Drilling targeted the Highlander and Carnage prospects which have strike lengths of 2.5km and 2km respectively and widths of up to 500m and 400m.
Hale says the latest drill program tightened up the line spacing on the substantial anomalies.
“We have demonstrated that the system is gold bearing, now we have to zoom in on the highest grade so that we can target the fresh rock source with RC drilling,” he added.
TRADING HALTS
MONEYME (ASX:MME) – MONEYME is, as its name implies, starting a capital raise.
Dicker Data (ASX: DDR) – Dicker’s looking to engorge its bottom line, with a capital raise.
Bod Australia (ASX:BOD) – Bod is getting into a capital raise, possibly expanding the business into a Dad Bod.
Alicanto Minerals (ASX:AQI) – And please give Alicanto a warm welcome to the Capital Raise Club.
Nitro Software (ASX:NTO) – There’s a heads-up from Nitro that they’re expecting an invitation in the mail that could mean a change of control transaction.
Advanced Human Imaging (ASX: AHI) – News of a material acquisition. See above for the deets.
West Cobar Metals (ASX:WC1) – price query