Small caps have closed modestly lower, but still enjoyed their best week in 12.
The Small Ordinaries index of 200 small cap companies finished Friday down 9.2 points, or 0.29 per cent, to 3,179.8
But after gains Tuesday, Wednesday and Thursday the index still finished the week up 2.71 per cent, its best week since a 5.18 per cent gain the first week of November.
Small caps outperformed their larger peers, with the ASX200 was down 0.34 per cent for the day and up 1.27 per cent for the week.
Bell direct market analyst Jessica Amir noted that Thursday’s gains took the ASX200 to a 11-month high, and just a five per cent “puff away” from a record all-time high.
Strong US corporate earnings; US President Joe Biden and his treasury secretary pledging to keep corporate taxes low; a strong Chinese economy and better-than-expected Australian jobs figures released Thursday have all boosted sentiment, Amir said.
The tech sector has been the biggest gainer this week, rising seven per cent, “but broad buying place, seeing all sectors pickup, except utilities, given the economy is likely to go back to somewhat normal this year”.
Sectors were mixed on Friday, with energy, mining, industrials, financials, tech and utilities falling and consumer discretionary, consumer staples, healthcare, telecom and property rising.
Afterpay (ASX:APT) opened strong and set a new all-time high of $151.22 – its first time breaking $150 – but then sank throughout the day, closing down 5.2 per cent at $141.33.
Redflex Holdings (ASX:RDF) was the biggest gainer, soaring 115 per cent to 86c after the traffic camera manufacturer received a takeover offer from a US company at a 130 per cent premium.
Announcements
– Immutep (ASX:IMM) fell 5.8 per cent to 40.5c after the LAG-3 immunotherapy company announced that its licensing partner, GlaxoSmithKline (LON:GSK), had discontinued a Phase 2 clinical trial evaluating possible treatment for active ulcerative colitis. The trial was stopped by GSK “based on the assessment of clinical data as part of a planned interim analysis conducted in consultation with the trial’s data review committee,” Immutep said.
– PainChek (ASX:PCK) rose 4.2 per cent to 7.4c after it had finished 2021 with $12.4 million and expected to launch its painchecking app in the Australian and overseas home care market in the first quarter.
– MGC Pharma (ASX:MXC) was flat at 2.6c after the medical cannabis company reported receiving $456,000 in revenue from 2,900 units sold over the December quarter.
– Novatti Group Limited (ASX:NOV) announced that its Visa Prepaid cards are now supported by Apple Pay which will give Novatti’s clients access to Apple’s global payments platform. Managing director Peter Cook said the partnership would provide its clients “with even greater flexibility and coverage in their choice of mobile device, and therefore, the opportunity for Novatti’s platforms to scale further”.
– Emerge Gaming (ASX:EM1) fell 11 per cent to 6.5c after the e-sport and gaming company announced its Miggster social gaming platform now had over 100,000 paying subscribers.