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.

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“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:

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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.

Chalice shares rocketed 175 per cent over a week in late March after the company announced an intercept of 19m at 2.6 per cent nickel, 1 per cent copper, 8.4 grams per tonne (g/t) palladium and 1.1g/t platinum from its maiden drilling program at Julimar.

 

LOSERS

Here are the worst performing ASX small cap stocks at 12pm Tuesday April 14:

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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.