Lunchtime ASX small cap wrap: Who’s getting ready to spend today?

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The early numbers are in, and policy makers are now bracing for Australia’s economy to take a huge CODIV-19-related hit in Q1.

The Treasury department expects the fallout to lop a full 0.5 percentage points off GDP in the March quarter.

And while scientists and doctors race to contain the viral outbreak, Australia’s government is gearing up to splash come cash as activity continues to slow.

Last night, Canada’s central bank made an emergency interest rate cut of 50 basis points, following the US Federal Reserve the night before.

Along with some solid US manufacturing data, stocks appeared to approve of a coordinated central bank response to the crisis as the S&P500 ripped higher by more than four per cent.

Back on the home-front, the Morrison government has ditched plans to maintain its fiscal surplus. It’s now preparing a multi-billion dollar stimulus package focused on jobs and small business (NB: a K-Rudd style, $900 consumer bonus is probably not forthcoming).

All of that has helped provide some momentum for local markets today, even though the outlook for the virus itself is still geared firmly towards fear and uncertainty rather than any semblance of containment.

The ASX200 was up 1.59 per cent to 6,426, while the Small Ords index climbed 1.72 per cent to 2,741.

WINNERS

Here are the best performing ASX small cap stocks at 12pm Thursday March 5:

Swipe or scroll to reveal the full table. Click headings to sort.

De Grey Mining (ASX:DEG) +37%

The gold explorer continued its 2020 surge following another round of strong drilling results at the high-grade Hemi discovery in the Pilbara.

“Early drilling at Hemi has produced some of the best discovery intersections that I have seen. Drilling to date, shows exceptionally wide, continuous and good grade gold mineralisation. We have three rigs on site advancing this exciting new discovery,” exploration manager Phil Tornatora said.
 

LOSERS

Here are the worst performing ASX small cap stocks at 12pm Thursday March 5:

Swipe or scroll to reveal the full table. Click headings to sort.

Murray River Organics (ASX:MRG) -76%

The dried-fruit maker went into suspension back in early December, “pending the release of an announcement regarding discussions with its financier”.

After a bit of board upheaval and a $25m capital raise, the company rejoined the ASX boards today and promptly slumped by more than 70 per cent.

At Stockhead, we tell it like it is. While De Grey Mining is a Stockhead advertiser, it did not sponsor this article.

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