Lunchtime ASX small cap wrap: Who’s prepping for the endgame?
Link copied to
It was ‘markets on steroids’ as the Nasdaq and S&P 500 hit new closing highs on Tuesday, fuelled by better-than-expected corporate earnings.
Of the 104 companies in the S&P 500 that reported quarterly earnings to April 18, 77.9% reported above analyst expectations, according to Refinitiv.
(Although this might just highlight just how bad analysts are at predicting the future.)
On Tuesday, global oil prices rose to six-month highs, iron ore was up again to US$94.20 a tonne, while base metals and gold prices fell.
In local news, the Federal Budget is in surplus for the first time in a decade – “nothing short of remarkable,” says Commsec chief economist Craig James.
But inflation came in this morning with a bad miss. The weakest quarterly increase on record has put the chance of a rate cut in May squarely on the table, and the Aussie dollar is getting hammered.
Unsurprisingly, it’s been a strong session for local small caps in morning trade.
The Small Ords tracked broader markets higher to rise by 26.3 points at 12pm AEST — a gain of 0.93 per cent. At 2,856, it’s marching steadily towards that 12-month high of 2,914 reached in August last year.
Check this out:
Small cap explorers led the charge, with Caeneus Minerals (ASX:CAD), Gladiator Resources (ASX:GLA), and VDM Group (ASX:VMG) all up 100 per cent in morning trade on no news.
And the ASX forced Consolidated Zinc (ASX:CZL) to retract a maiden ore reserve statement but it was too late – the stock surged 70 per cent in morning trade.
Here are the best performing ASX small cap stocks at 12pm on Wednesday, April 24:
P2P Transport (ASX:P2P) is in strife. Yesterday, the company announced, amongst other things, that both its chairman and CEO, Matthew Reynolds and Tom Varga, have resigned effective immediately.
P2P banked $16.1 million in revenue for the March quarter, down from $20.1 million in the previous quarter.
Investors punished the company in morning trade, sending the stock down 25 per cent to 22c a share.
Here are the worst performing ASX small cap stocks at 12pm on Wednesday, April 24:
And now for something completely different — using a drone equipped with flamethrower to clear some power lines. What could go wrong?