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Lunchtime ASX Small Cap Wrap: Why is the disconnect between ‘Wall Street and Main Street’ widening?
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While real economies resemble a ‘Mad Max’-style wasteland, share markets are ostensibly recovering. That’s because investors are seeing “green shoots” amid early signs the COVID-19 pandemic may be ebbing, Oxford Economics senior economist Bob Schwarz says.
They also seem optimistic that gigantic fiscal and monetary efforts globally will fuel an early recovery.
“[US] Stocks had their best week [last week] since 1974 even as the economy continues to deteriorate,” Schwarz says.
Scroll down for today’s biggest small cap movers>>
“To be sure, the stock market is forward looking; the recent gains reflect growing optimism that the massive fiscal and monetary aid set to course through the economy in coming months will help cushion it against the shock of COVID-19 and plant the seeds for a recovery sooner rather than later.”
But Dennis Dick, head of market structure and proprietary trader at Bright Trading in Las Vegas, says what you’re seeing at the end of the day is investors who are sitting with too much cash buying ‘the dips’.
“I think that trend continues unless the news flow gets predominantly worse,” he says.
The local bourse has fluctuated between negative and positive territory this morning. The ASX 200 Index is currently up 0.47 per cent to 5,412.6 points, while the Small Ords Index is up 2 per cent to ~2,300 points.
WINNERS
Here are the best performing ASX small cap stocks at 12pm Tuesday April 14:
Swipe or scroll to reveal the full table. Click headings to sort.
| CODE | COMPANY | PRICE | % CHANGE | MARKET CAP |
|---|---|---|---|---|
| APG | Austpac Resources | 0.002 | 100.00% | $2.9M |
| T3D | 333D | 0.002 | 100.00% | $1.1M |
| AVW | Avira Energy | 0.002 | 100.00% | $1.1M |
| MAN | Mandrake Resources | 0.02 | 53.85% | $3.5M |
| AVE | Avecho Bio | 0.006 | 50.00% | $6.3M |
| AGE | Alligator Energy Ltd | 0.003 | 50.00% | $2.9M |
| NET | Netlinkz | 0.066 | 43.48% | $132.6M |
| ESE | Esense-Lab | 0.01 | 42.86% | $1.9M |
| SXL | Southern Cross Media | 0.185 | 42.31% | $100.0M |
| MPH | Mediland Pharm | 0.14 | 40.00% | $31.3M |
| ADO | Anteo Diagnostics | 0.025 | 38.89% | $29.6M |
| MDI | Middle Island Resources Ltd | 0.011 | 37.50% | $19.5M |
| MMJ | MMJ Group | 0.125 | 35.87% | $21.2M |
| KYK | Kyckr | 0.074 | 34.55% | $12.9M |
| SHO | SportsHero | 0.016 | 33.33% | $5.3M |
| RBR | RBR Group | 0.008 | 33.33% | $4.7M |
| RXM | Rex Minerals | 0.05 | 31.58% | $11.8M |
| LOT | Lotus Resources | 0.065 | 30.00% | $31.1M |
| ATL | Apollo Tourism & Leisure | 0.18 | 28.57% | $26.1M |
Avecho (ASX:AVE) and its patented drug delivery system has been given a new lease on life after a Japanese company pulled support in October after three years of research.
A new deal with cannabidiol supplier Purisys will see the tech used to develop new oral cannabinoid products – sending the stock up 50 per cent in morning trade.
Minnow Mandrake Resources (ASX:MAN) is up +50 per cent after farming into ground near(ish) to Chalice Gold Mines’ (ASX:CHN) recent Julimar nickel discovery in WA.
LOSERS
Here are the worst performing ASX small cap stocks at 12pm Tuesday April 14:
Swipe or scroll to reveal the full table. Click headings to sort.
| CODE | COMPANY | PRICE | % CHANGE | MARKET CAP |
|---|---|---|---|---|
| PNC | Pioneer Credit | 0.27 | -57.14% | $17.1M |
| LNG | Liquefied Natural Gas | 0.05 | -52.38% | $39.8M |
| KAS | Kasbah Resources | 0.014 | -44.00% | $1.9M |
| UUV | UUV Aquabotix | 0.001 | -33.33% | $682K |
| KEY | Key Petroleum | 0.002 | -33.33% | $3.4M |
| MRD | Mount Ridley Mines | 0.001 | -33.33% | $4.0M |
| BAS | Bass Oil | 0.001 | -33.33% | $5.0M |
| CE1 | Calima Energy | 0.003 | -25.00% | $8.6M |
| NUH | Nuheara | 0.014 | -22.22% | $19.5M |
| CL8 | Collaborate Corporation | 0.008 | -20.00% | $11.5M |
| AWV | Anova Metals | 0.008 | -20.00% | $5.5M |
| SER | Strategic Energy Resources | 0.004 | -20.00% | $4.8M |
| RXH | Rewardle Holdings | 0.005 | -16.67% | $3.2M |
| OSP | Osprey Medical | 0.011 | -15.38% | $5.6M |
| AFL | AF Legal | 0.11 | -15.38% | $7.8M |
| AGJ | Agricultural Land Trust | 0.022 | -15.38% | $2.5M |
| ECG | eCargo Holdings | 0.028 | -15.15% | $20.3M |
| LI3 | Lithium Consolidated | 0.012 | -14.29% | $2.1M |
| AU1 | Agency Group Australia | 0.038 | -13.64% | $13.2M |
| DCC | Digitalx | 0.026 | -13.33% | $18.2M |
| HOT | HotCopper Holdings | 0.1 | -13.04% | $21.7M |
The proposed takeover of Australia’s sole small cap LNG stock Liquefied Natural Gas (ASX:LNG) has fallen apart, sending the stock down almost 40 per cent by lunchtime.
This comes after First Wall Street Capital failed to provide bridge financing to the company for ongoing marketing and development of its LNG projects, which bidder LNG9 said would cause certain conditions of its proposed takeover bid to be triggered or be incapable of being satisfied.
