Lunchtime ASX small cap wrap: who’s feeling volatile today
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Here are the key ASX small cap winners and losers at lunch Monday December 10:
The ASX Small Ords plummeted 43.40 points – or 1.7 per cent — to 2506 at about 12pm AEDT, and actually breached the 2500-mark at one point (which last occurred around September last year).
According to Fat Prophets, the three main US indices have endured their worst start to December since 2008.
Digital payment provider Incentiapay (ASX:INP) was up 31 per cent this morning to 3.3c, paring some of last week’s massive losses.
Investors ran away from IncentiaPay in droves last Friday after it admitted it probably won’t deliver on earnings predictions in FY19.
This pushed shares as low as 1.4c — an 82 per cent plunge — on Friday morning, with over 37 million shares changing hands just before midday.
Cancer drug developer Prescient Therapeutics (ASX:PTX) was up 20.5 per cent to 8.6c in morning trade after it told investors none of the five responders in Phase 2 of its breast cancer trial have had disease progression to date.
Talon Petroleum (ASX:TPD) was up 33 per cent to 0.4c, Pilbara iron ore explorer Red Hill Iron (ASX:RHI) was up 20 per cent to 30c, and cobalt gold explorer Blackstone Minerals (ASX:BSX) was up 18 per cent to 13c – all on no news.
A Ukrainian battery company that junior explorer Hipo Resources (ASX:HIP) has a 25 per cent stake in has aligned itself with a big Chinese electric car maker.
Next-Battery has formed a “strategic relationship” with Shanghai-headquartered Lvchi Auto group, which wants to produce over 500,000 EVs a year.
But the news failed to inspire investors, with Hipo shares sliding over 11 per cent to an intra-day low of 1.6c. Shares recovered slightly to 1.7c by midday, with 4.2 million shares changing hands.
Hipo Resources executive chairman Maurice Feilich told Stockhead it was unfortunate the announcement came after the Dow had dropped 4 per cent in a week.
“We’re [the Small Ords] off 1.5 per cent today and it has been quite a bit of volume,” he said.
“It’s just anybody using the market as an opportunity to liquidate.”
Mental health tech company Medibio (ASX:MEB) was also down 32.5 per cent to 2.7c after it announced it was looking to raise about $4.05 million through a rights issue by selling shares at 2c each.