Closing Bell: Old school resources rise on snifter of Chinese stimmy; Uranium pops on delightful double deal

• Small cap index up 1.1%, stronger than benchmark, but both do good, run hard.  
• Wall Street snaps 3-day losing streak, China could be back in stimmy mode
• Uranium’s gone insanium

The ASX 200 is up 0.7% and the Emerging Companies (XEC) index is about 1.1% higher as the Resources, Energy (up 1.7%), Miners and the All Ords Gold Sectors (up 2.7%) led gains.

There’s been movement at the station on Thursday as key commodity companies lifted on a typically tempting but lite on details Chinese stimmy announcement from a Wednesday night State Council executive meeting chaired by Premier Li Keqiang.

This is how the China Daily described it:

China will add follow-up measures to its policy package for stabilising the economy as part of intensified efforts to consolidate the foundation of economic recovery and growth, and task forces will be sent to localities to supervise and assist work on this front to promote policy implementation at a faster pace.

Fortunately Bloomberg’s Li Yanping continues to be drip fed some details with accordingly big numbers:

China’s Cabinet outlined a 19-point policy package as part of stimulus measures said to be worth 1 trillion yuan (US$145 billion).

As per Bloomberg markets here are likely rising on the potential of at least another:

300 billion yuan that state policy banks can invest in infrastructure projects, on top of 300 billion yuan already announced at the end of June. Local governments will be allocated 500 billion yuan of special bonds from the previously unused quota.

The Cabinet apparently sees China’s economy as continuing the momentum toward recovery… but marginal fluctuations remain and the foundation of economic recovery is not yet solid.

Stocks in the states rose overnight, that broke a very long three-day slide for the Dow Jones and the S&P 500, with traders loitering nearby for some J Hole clarity on the Fed’s tango with toppy inflation.

“Expectations of a hawkish message from FOMC Chair Powell at Jackson Hole will likely keep upward pressure on the USD in the run‑up to his speech on Friday (night our time),” Kristina Clifton CBA’s senior economist said in a note.

On the local bourse, uranium names led the rise following a double hit of nicely nuclear news –  Japan will not only restart idled nuclear plants – it will consider building new ones while India’s largest power producer, NTPC is looking to develop another big nuclear project just weeks after announcing its entry into the sector, so says Bloomers.

ASX SMALL CAP LEADERS

Here are the best performing ASX small cap stocks:

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As mentioned it’s raining uranium on Thursday. Here’s Reuben’s pick of the small caps on morning trade:

• Gladiator Resources (ASX:GLA) +40%
• Kingsland Minerals (ASX:KNG) 23.3%
• GTI Energy (ASX:GTR) 20%
• Adavale Resources (ASX:ADD) 25.9%, and
• Okapi Resources (ASX:OKR) 18.4%.

But it’s Variscan’s (ASX:VAR) turn on the throne today, climbing this morning on news of some sunburn-busting zinc finds at its San Jose mine in northern Spain.

After an initial rush first thing in the morning, Variscan has eased to “only” be up 40% at close, narrowly edging out nearest Fast Climber rival Anson Resources (ASX:ASN), which has been on a rapid rise on the back of news it is partnering with global DLE leader Sunresin to develop a full-scale commercial lithium plant at Paradox Lithium Project.

ASX SMALL CAP LAGGARDS

Here are the worst performing ASX small cap stocks:

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Alas, City Chic (ASX:CCX) has fallen off the catwalk, diving well over 20% after missing FY22 expectations, The fashion group delivered a near 40% rise in FY22 revenue, lifting net profit by over 11% to $47m.

Unfortunately eagle-eyed brokers at UBS analysts were disappointed by softer than anticipated earnings and margins.

WHAT YOU MAY’VE MISSED ON THE ASX TODAY

Time to channel our inner weight watchers with a double helping of light’n’easy stories this afternoon, including details from Codrus Minerals’ (ASX:CDR) non-renounceable entitlement issue of options to eligible shareholders.

If your name’s on the list by 5pm (WST) on 31 August 2022, you’ll be rewarded on the basis of one (1) New Option (Loyalty Option) for every two (2) Shares held, at an issue price of $0.001. If you’re not on the list, then you can’t come in, on the basis of the club already being full, or you’re wearing the wrong shoes.

Elsewhere, Australian Pacific Coal (ASX:AQC) is swatting away suitors like a Bronte novel brat, after M Resources (that’s a company, not the son of Mr and Mrs Resources) stepped up to proffer an offer it hopes will beat Trepang’s three-act play for 100% of AQC earlier this week.

M Resources says it’ll stump up the dough for 14.99% of shares in AQC at $0.36 per share for a total of $2.7 million against Trepang’s play for 19.97% of the shares in AQC at $0.30 per share for a total of $3.78 million. 

Act 2 remains the same drawn-out settling of outstanding (but not excellent) AQC debts, but for a blistering Act 3, M Resources has dropped a mega-twist: an all cash consideration proposed price is $0.36 per share or approximately $18.2 million, eclipsing Trepang’s $0.30 per share offer.

TRADING HALTS

Riversgold (ASX:RGL) – Acquisition news (Creek v Canal)

Elixir Energy (ASX:EXR) – More acquisition news (Red Bull v Monster)

Hastings Technology Metals (ASX:HAS) – And another acquisition announcement (France v England)

Codrus Minerals (ASX:CDR) – There’s a Loyalty Option Entitlement Offer in the offing.

Invictus Energy (ASX:IVZ) – Invictus has asked for a pause, before info on its exploration rights to the Exclusive Prospecting Orders 1848 and 1849 are published in the Zimbabwe Government Gazelle. Sorry, Gazette. That should say Gazette. 

Australian Pacific Coal (ASX:AQC)  – AQC has received another Non-Binding Indicative Proposal. *sigh*… must be nice to feel wanted.

Mobilicom (ASX:MOB) – Nasdaq listing and Capital raise. It’s a difficult manouvre, manouvere… move that the judges should score well. 

Magnum Mining (ASX:MGU) – Capital raise.

Matsa Resources (ASX:MAT) – Capital raise.