• ASX 200 edges higher,  small cap index falls 0.44%
  • 7 out of 11 sectors were in the green with Tech up 1.25%
  • Downbeat RBA Governor speech highlights all the things that could go wrong with the economy

 

Last night the leads were decent, the Nasdaq leading while here in Sydney, the benchmark ASX200 moved higher, and the ASX Emerging Companies (XEC) index is circa 0.44% lower.

A total of 7 out of 11 underlying sectors were in the green, with Information Technology the strongest sector, rallying by 1.25%. Wisetech Global (ASX:WTC) jumped 2.58%, and Xero (ASX:XRO) was up 0.69%.

Energy was the biggest loser, with Woodside (ASX:WDS), Santos (ASX:STO) and Yancoal (ASX:YAL) down 1.42%, 1.60% and 4.06% respectively.

Yesterday a speech by the Reserve Bank of Australia (RBA) Governor didn’t provide much guidance on future interest rate moves, instead he highlighted all the things that could go wrong, including stagflation, a wage-price spiral, reduction in globalisation, climate change and lift in inflation expectations.

CBA chief economist Craig James says the RBA doesn’t want to be accuse of being too upbeat and not representing the risks.

“But investors are indeed placing significant trust in central banks to get it right – notably in the US and Australia,” he said. 

“In fact, the S&P/ASX 200 index is only around 6 per cent below record highs. And the ASX 200 is around 2.5 per cent lower over 2022, out-performing global markets.” 

But are investors getting a little too positive? James says a rocky road potentially lies ahead, with a fourth wave of Covid taking hold and words like ‘stagflation’ being thrown around where the choice is economic growth or low inflation. 

“In this situation, investors are likely to favour defensive assets like utilities and property trusts and health,” he said. 

And if a wage-price spiral is on the cards, again its defensive assets that investors will flock too, James said.

 

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
LSR Lodestar Minerals 0.0065 44% 67,801,232 $7,822,968
IRI Integrated Research 0.49 34% 753,782 $63,129,864
NZS New Zealand Coastal 0.004 33% 1,002,150 $3,381,015
CRB Carbine Resources 0.013 30% 420,828 $3,152,755
CLX CTI Logistics 1.67 27% 105,403 $103,672,103
GRV Greenvale Mining Ltd 0.096 26% 2,310,589 $32,050,888
GLV Global Oil & Gas 0.0025 25% 848,374 $4,121,709
MTH Mithril Resources 0.005 25% 1,888,187 $11,760,932
BMT Beamtree Holdings 0.26 24% 1,122,252 $51,394,644
ICL Iceni Gold 0.13 24% 1,383,578 $13,460,625
AOU Auroch Minerals Ltd 0.063 21% 47,260,200 $19,297,814
RAG Ragnar Metals Ltd 0.018 20% 1,248,475 $5,687,773
POD Podium Minerals 0.125 19% 3,106,817 $35,338,687
BXN Bioxyne Ltd 0.025 19% 32,000 $13,978,553
99L 99 Loyalty Ltd. 0.019 19% 562,423 $18,554,924
HRN Horizon Gold Ltd 0.325 18% 11,600 $34,424,951
NNG Nexion Group 0.08 18% 25,000 $5,499,228
AX8 Accelerate Resources 0.034 17% 24,862,145 $9,019,804
CLA Celsius Resource Ltd 0.0175 17% 51,629,696 $22,542,436
TZL TZ Limited 0.105 17% 83,061 $20,043,730
RBR RBR Group Ltd 0.0035 17% 1,193,700 $3,880,508
AFL Af Legal Group Ltd 0.145 16% 542,557 $9,567,052
BVR Bellavistaresources 0.3 15% 346,240 $9,489,353
WSR Westar Resources 0.053 15% 11,281,471 $2,882,369
AHC Austco Healthcare 0.115 15% 16,996 $28,981,734
Wordpress Table Plugin

The biggest winners were Lodestar Minerals (ASX:LSR) and its partner in crime Auroch Minerals (ASX:AOU) off the back of high grade lithium at the Nepean project joint venture in WA (AOU 80%, LSR 20%).

Significant results from the two-hole program – originally designed to test for nickel — included 2m at 3.26% Li2O from 198m. 

And the two holes were around ~420m north of a previously reported 1m @ 0.88% Li2O from 78m – which suggests potential LCT-enriched pegmatites over a significant strike length at the Nepean North Prospect, AOU says.

The company will immediately kick off a high priority lithium exploration program.

“The limited work on the pegmatites thus far has successfully confirmed high grade lithium mineralisation, and even more importantly, spodumene mineralisation,” AU exploration manager Robin Cox says.

Spodumene is the main lithium ore mineral.

“We can see the significant potential for high grade LCT pegmatites at Nepean North and are excited to commence the next phase of exploration.”

 

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% 1,115,182 $4,980,891
MGG Mogul Games Grp Ltd 0.0015 -25% 15,000,000 $6,526,882
NTL New Talisman Gold 0.0015 -25% 2,189,292 $6,254,451
PRM Prominence Energy 0.0015 -25% 2,224,600 $4,849,218
AQX Alice Queen Ltd 0.002 -20% 100,000 $5,500,625
AUK Aumake Limited 0.004 -20% 23,579,837 $3,857,235
KFE Kogi Iron Ltd 0.004 -20% 1,778,846 $8,160,389
PG1 Pearl Global Ltd 0.016 -20% 4,228,173 $20,044,946
IVZ Invictus Energy Ltd 0.255 -19% 29,393,669 $276,703,195
OMX Orangeminerals 0.073 -19% 73,133 $4,470,063
MCM Mc Mining Ltd 0.2 -18% 110,364 $97,431,989
MMA Maronanmetalslimited 0.25 -17% 214,110 $22,500,003
CHK Cohiba Min Ltd 0.005 -17% 608,348 $9,765,965
BDX Bcaldiagnostics 0.059 -16% 84,000 $9,526,630
TSL Titanium Sands Ltd 0.011 -15% 1,621,413 $18,283,172
TER Terracom Ltd 0.79 -15% 8,500,065 $743,551,989
HAR Harangaresources 0.145 -15% 140,806 $7,108,383
AVW Avira Resources Ltd 0.003 -14% 4,282,581 $7,468,265
BIR BIR Financial Ltd 0.03 -14% 292 $9,832,766
ERL Empire Resources 0.006 -14% 125,000 $7,270,005
BIT Biotron Limited 0.032 -14% 4,154,674 $25,971,510
CMO Cosmometalslimited 0.13 -13% 96,065 $3,826,500
OIL Optiscan Imaging 0.1 -13% 454,876 $71,254,644
CYQ Cycliq Group Ltd 0.007 -13% 500,622 $2,780,133
Wordpress Table Plugin

 

THINGS YOU’VE PROBABLY MISSED

The technology-driven translation provider Straker Translations (ASX:STG) has whacked another impressive set of 1H results with revenue jumping in the first half on the back of three solid years with computer giant IBM.

The Aussie AI-based translation services provider has delivered revenue of $33 million, up 42% from 1H 2021.

The only pure play translations business on the entire ASX also reported a strong balance sheet with no debt and cash of $12.4 million as at September 30, 2022 and reaffirmed its guidance for profitable growth in revenue in FY23 of 20 per cent with gross margins exceeding the 54% achieved in FY22.

Founder and CEO Grant Straker says the company was well positioned in the face of geopolitical tensions and adverse macroeconomic conditions and saw increasing revenue opportunities in Q4.

“Straker’s global reach and capability as well as our technology leadership represent a more compelling proposition to customers than ever,” Straker said.

Meanwhile, leading tech investor Bailador has been quietly upping its stake in Straker over FY22.

The ASX-listed firm focuses on small but growing tech names with a “proven” business model that have a global addressable market.

It’s backed Straker since IPO and has increased its shareholding, currently sitting on a 13.5% stake. And there’s more in the tank with Straker saying:

“The global language services market continues to grow and is forecast to reach $US84.9 billion in 2026, representing sustained year-on-year growth of nearly 7%, while the consolidation seen over the last few years will continue.”

 

TRADING HALTS

Musgrave Minerals (ASX:MGV) – capital raise.

Jayride Group (ASX:JAY) – capital raise.

Mamba Exploration (ASX:M24) – pending an announcement around a rare earth elements acquisition. 

Boab Metals (ASX:BML) – capital raise.

Critical Resources (ASX:CRR) – capital raise.

Energy World Corporation (ASX:EWC) – capital raise.

Euroz Hartleys (ASX:EZL) – to enable the company and its share registry to apply the approved capital reduction and share cancellation and to provide certainty to shareholders and the market that trades are being conducted on a reconstructed basis ensuring an orderly and efficient market. 

KNeoMedia (ASX:KNM) – pending a material contract announcement.

Group 6 Metals (ASX:G6M) – capital raise.

Greenhy2 (ASX:H2G) – equity placement.