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Lunchtime ASX Small Cap Wrap: Oily to bed, oily to rise?
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US oil prices turned negative overnight, with oil due to be delivered in May considered pretty much worthless. Quality memes abound.
Me and the boys waiting for the V-shaped recovery pic.twitter.com/hW60fiLx8K
— Colin 🌐 (@colinmort) April 20, 2020
>>Scroll down for today’s best/worst performing small caps>>>
But oil to be delivered in June was priced around $US21 ($33.20), which – while still low – is seen by many as a more reliable view of traders’ outlook for oil.
READ: Can the ASX’s American frackers survive sub-$US20 oil?
European share markets were down yesterday as oil prices plunged, and yet finished the day higher, driven by healthcare stocks. Drug maker Novartis was up 2 per cent after scoring US regulatory approval to trial malaria drug hydroxychloroquine against COVID-19.
US share markets fell on Monday on oil prices and as “investors turned cautious over what is expected to be a disappointing week for earnings and economic data”, Commsec says.
While airline stocks globally get hammered (Rest in pieces, Virgin (ASX:VAH)), so-called “stay-at-home” stocks like Amazon (+0.8 per cent), Netflix (+3.4 per cent) and Roku (+2.6 per cent) all climbed.
Metals are looking ok right now. Yesterday, nickel and iron ore rose by 3.9 per cent and ~1 per cent respectively as the Chinese stainless-steel market shows signs of recovery and major producer Vale cuts production targets for 2020.
The gold futures price also rose by 0.7 per cent to $US1701.60 (~$2,690/oz).
Today, RBA Governor Philip Lowe delivers an economic and financial update. Any comment on the impact to Australia’s economy from COVID-19 will be eagerly awaited by the market, CommSec says.
WINNERS
Here are the best performing ASX small cap stocks at 12pm Tuesday April 21:
Swipe or scroll to reveal the full table. Click headings to sort.
CODE COMPANY PRICE % CHANGE MARKET CAP VIP VIP Gloves 0.2 471.43% $22.8M OCC Octanex NL 0.012 71.43% $1.9M MBK Metal Bank 0.006 50.00% $3.5M SPQ Superior Resources 0.003 50.00% $1.5M PCL Pancontinental Oil&Gas 0.002 50.00% $5.4M MTC Metalstech 0.165 26.92% $12.4M BSM Bass Metals 0.004 33.33% $8.4M REZ Resources Energy Group 0.015 25.00% $4.7M CTO Citigold Corporation 0.004 33.33% $7.3M TTM Titan Minerals 0.077 30.51% $45.0M A1G African Gold 0.115 29.21% $5.2M XCD Xcd Energy 0.005 25.00% $2.8M GID GI Dynamics 0.005 25.00% $7.3M CFO Cfoam 0.05 25.00% $7.1M PKS PKS Holdings 0.16 23.08% $15.8M NOX Noxopharm 0.205 20.59% $25.9M ONX Orminex 0.072 20.00% $32.4M AMD Arrow Minerals 0.006 20.00% $5.8M AOU Auroch Minerals 0.055 19.57% $8.3M MEP Minotaur Exploration 0.038 18.75% $14.1M MDI Middle Island Resources 0.014 16.67% $24.7M
Medical glove maker VIP Gloves (ASX:VIP) surged ~470 per cent after telling shareholders that production was still going at its Malaysian plant after being deemed “essential”.
The company — which recorded a $995,700 net loss in December half — also says its order book is “fully committed” until December 2020.
“These orders represent the production of approximately one hundred (100) 40-foot shipping containers of nitrile gloves, each container holding up to 4 million gloves,” it says.
Biotech Noxopharm (ASX:NOX) is up +20 per cent after announcing it will test its prostate cancer drug against COVID-19.
Many biotech companies plunged in the early days of COVID-19 but those that have pivoted into the area have witnessed some share price gains.
LOSERS
Here are the worst performing ASX small cap stocks at 12pm Tuesday April 21:
Swipe or scroll to reveal the full table. Click headings to sort.
| CODE | COMPANY | PRICE | % CHANGE | MARKET CAP |
|---|---|---|---|---|
| AUH | Austchina Holdings | 0.001 | -50.00% | $1.6M |
| AEE | Aura Energy | 0.002 | -33.33% | $3.6M |
| CAD | Caeneus Minerals | 0.001 | -33.33% | $2.7M |
| AU1 | Agency Group Australia | 0.04 | -31.03% | $12.0M |
| CAP | Carpentaria Exploration | 0.02 | -28.57% | $5.5M |
| FPL | Fremont Petroleum | 0.003 | -25.00% | $5.0M |
| IMS | Impelus | 0.003 | -25.00% | $2.4M |
| CRO | Cirralto | 0.003 | -25.00% | $2.5M |
| CE1 | Calima Energy | 0.003 | -25.00% | $6.5M |
| RLG | Roolife Group | 0.031 | -22.50% | $10.6M |
| ARE | Argonaut Resources | 0.004 | -20.00% | $6.3M |
| QFY | Quantify Tech | 0.002 | -20.00% | $3.9M |
| WBE | Whitebark Energy | 0.004 | -20.00% | $12.2M |
| RNE | Renu Energy | 0.022 | -18.52% | $2.7M |
| BUD | Buddy Platform | 0.009 | -18.18% | $21.4M |
| CGN | Crater Gold Mining | 0.009 | -18.18% | $11.1M |
| ATS | Australis Oil & Gas | 0.023 | -17.86% | $27.6M |
| AHL | Ahalife Holdings | 0.005 | -16.67% | $8.0M |
| AVE | Avecho Bio | 0.005 | -16.67% | $9.5M |
| EMU | Emu NL | 0.015 | -16.67% | $5.4M |
