Lunchtime ASX small cap wrap: Who’s got their hard hat on today?

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If you’re an investor with long positions in pretty much any stock listed on the ASX, we hope you’ve got your hard hat on.

The word “bloodbath” has rarely been more apt when describing the price action, with stocks on track for their biggest falls since the global financial crisis as the ASX200 slumped back below 6,000 points.

It follows a breakdown in the oil market over the weekend, when Russia stated it would not adhere to OPEC instructions to cut production amid falling prices.

Saudi Arabia responded by saying it too would ramp up production, thereby creating a price war.

And in response, the global oil market has more or less collapsed. Prices for Brent crude slumped more than 25 per cent today, prompting similar falls in ASX-listed energy stocks.

Amid all that, uncertainty surrounding the global health impact of the coronavirus continues to cast a dark shadow over the outlook for the global economy and risk assets.

Over the weekend, Italian authorities placed the entire northern region of Lombardy on an enforced lockdown as the death toll continues to climb.

While it’s a sea of red in Asian trade, futures markets are pointing to more wipeouts across the globe when European and US markets open later today.

The ASX200 index slumped by 5.47 per cent in morning trade to 5,879.80 points, while the Small Ords was down 5.27 per cent at 2,502.40 points.

WINNERS

Here are the best performing ASX small cap stocks at 12pm Monday March 9:

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

Zenith Energy (ASX:ZEN)

While the ASX Energy index is on track for a historic fall today after the crash in oil prices, power-generation company Zenith bucked the trend after receiving a $150m takeover offer from private equity group Pacific Equity Partners.

LOSERS

Here are the best performing ASX small cap stocks at 12pm Monday March 9:

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

The $51m oil explorer was in the firing line after this morning’s market collapse. In response to the price falls, Otto Energy released a statement outlining its risk management policy around oil prices.

The company said its 2020 production is hedged at $56.71 a barrel.

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