- 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 |
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 |
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.