- ASX lower with small caps down 1.14% in the past five days tracking broader market
- Magnetite Mines leads the gainers this week after two positive announcements
- Software company Nuix successfully defends a $183 million claim by former CEO
By close (AEDT) on Friday the S&P/ASX Emerging Companies index (XEC) – a benchmark for Australia’s micro-cap companies – was down 1.14% for the past five days.
The Benchmark S&P/ASX 200 –home to the the top 200 ASX listed companies by float-adjusted market cap – was down 1.04% for the past five days.
All 11 sectors were in the red with real estate leading the losses down 5.80%, followed by the IT sector down 4.30%.
Weekly economic overview
In Australia the Reserve Bank of Australia (RBA) in its first meeting of the year followed the US Federal Reserve’s decision last week to raise the cash rate by 25bp.
The Aussie cash rate now stands at 3.35% after the RBA’s ninth interest rate rise since May 2022 with the central bank in its accompanying policy meeting statement signalling more hikes to come.
“The board is seeking to return inflation to the 2–3% range while keeping the economy on an even keel, but the path to achieving a soft landing remains a narrow one,” the statement said.
This week Federal Treasurer Jim Chalmers said that inflation remains the government’s “major focus”, while signalling that a recession despite the RBA’s continual rate hikes.
And in its latest Statement on Monetary Policy released this morning the RBA upgraded its near-term inflation forecasts in response to a strong December quarter CPI number and expectations wages will grow at a faster rate than previously expected.
Trimmed mean inflation, currently at 6.9%, is now expected to fall to 4.3% by the end of the year, compared to the central bank’s previous forecast of 3.8%.
Headline inflation is expected to ease to 4.8% by the end of the year, down from its current rate of 7.8%. However, the RBA doesn’t expect it to return to its 2-3 per cent target until mid-2025.
The RBA signalled more rate hikes ahead but did not how many.
“The board expects that further increases in interest rates will be needed to ensure that the current period of high inflation is only temporary,” the report noted.
“In assessing how much further interest rates need to increase, the board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market.
“It remains resolute in its determination to return inflation to target and will do what is necessary to achieve this.”
ASX IPOs this week
There were no companies listing on the ASX this week.
ASX Small cap winners:
Here are the best performing ASX small cap stocks for February 6-10:
Swipe or scroll to reveal full table. Click headings to sort:
Code Company Price % Week Market Cap MGT Magnetite Mines 0.895 111% $44,744,543 FXG Felix Gold Limited 0.14 75% $12,474,960 NXL Nuix Limited 1.4575 68% $490,251,357 OXX Octanex Ltd 0.005 67% $1,294,888 SPA Spacetalk Ltd 0.084 58% $25,383,937 BUY Bounty Oil & Gas NL 0.011 57% $14,390,260 PSC Prospect Res Ltd 0.17 55% $78,584,109 ALT Analytica Limited 0.0015 50% $4,613,801 EVE EVE Health Group Ltd 0.0015 50% $7,911,724 T3D 333D Limited 0.0015 50% $4,783,976 WBE Whitebark Energy 0.0015 50% $9,697,329 EMD Emyria Limited 0.245 48% $72,712,329 MMM Marley Spoon 0.23 48% $92,439,537 CSX Cleanspace Holdings 0.65 48% $53,913,666 PCL Pancontinental Energy 0.013 44% $90,650,674 MKL Mighty Kingdom Ltd 0.05 43% $13,375,003 BAS Bass Oil Ltd 0.185 42% $48,225,109 NVU Nanoveu Limited 0.017 42% $5,767,595 FRM Farm Pride Foods 0.105 40% $8,022,149 C29 C29 Metals limited 0.265 39% $11,169,065 OZZ OZZ Resources 0.089 38% $3,519,340 IMR Imricor Med Sys 0.3 36% $46,917,764 PLG Pearl Gull Iron 0.042 35% $6,569,482 BUX Buxton Resources Ltd 0.16 33% $24,894,971 CCE Carnegie Cln Energy 0.002 33% $31,285,147 DCX Discovex Res Ltd 0.004 33% $9,907,704 EVR Ev Resources Ltd 0.02 33% $18,719,681 FLX Felix Group 0.16 33% $26,642,351 GGX Gas2Grid Limited 0.002 33% $8,140,204 MTL Mantle Minerals Ltd 0.002 33% $10,691,210 TRM Truscott Mining Corp 0.12 33% $20,894,633 GTG Genetic Technologies 0.004 33% $46,166,633 HVY Heavy Minerals 0.185 32% $6,945,346 GRE Greentech Metals 0.145 32% $4,682,050 SLM Solis Minerals 0.125 32% $5,816,057 NXS Next Science Limited 0.765 31% $172,906,058 PEK Peak Rare Earths Ltd 0.56 30% $114,420,587 MM1 Midas Minerals 0.195 30% $9,998,059 W2V Way2Vat 0.023 28% $5,063,493 DRA DRA Global Limited 1.955 28% $106,372,524 JXT Jaxstaltd 0.051 28% $18,105,508 APX Appen Limited 3.26 27% $364,166,750 IBX Imagion Biosys Ltd 0.028 27% $30,275,600 AUQ Alara Resources Ltd 0.04 25% $26,569,239 MTB Mount Burgess Mining 0.005 25% $4,415,856 SRJ SRJ Technologies 0.15 25% $12,484,535 SUM Summit Minerals 0.175 25% $4,450,959 BNR Bulletin Res Ltd 0.125 25% $38,166,843 SKF Skyfii Ltd 0.082 24% $34,567,344 ABX ABX Group Limited 0.155 24% $35,774,530
Leading the gainers this week is Magnetite Mines (ASX:MGT) which has had impressed investors with positive news this week, including that it has boosted resources to 3.3 billion tonnes at its Razorback magnetite iron ore project in South Australia by updating its “highest quality” Iron Peak resource.
MGT said Iron Peak is now of suitable size and quality to investigate processing the deposit in the first years of operations.
The potential implications of this are material improvements to the project risk profile, cost base and overall economics.
MGT also signed a non-binding agreement to export high grade magnetite concentrate from the Razorback mine through Sanjeev Gupta’s GFG Alliance’s ports in Whyalla.
Among other gainers is software firm Nuix (ASX:NXL) which this week announced it had successfully defended against a $183 million claim by its former chief executive Peter Sheehy.
The Australian reported the Federal Court of Australia found Sheehy was not entitled to cash out his options in the business when it hit markets in 2020.
The Federal Court found although former chief executive Eddie Sheehy held 453,273 options in the business, after winning an earlier NSW Supreme Court case, he was not able to exercise them.
ASX Small cap losers:
Here are the worst performing ASX small cap stocks for February 6-10:
Swipe or scroll to reveal full table. Click headings to sort:
| Code | Company | Price | % Week | Market Cap |
|---|---|---|---|---|
| ZEU | Zeus Resources Ltd | 0.019 | -62% | $7,889,400 |
| LML | Lincoln Minerals | 0.03 | -41% | $18,399,478 |
| MRI | My Rewards International | 0.021 | -40% | $4,498,604 |
| KFM | Kingfisher Mining | 0.35 | -34% | $17,709,450 |
| MME | Moneyme Limited | 0.27 | -29% | $80,725,459 |
| REM | Remsense Technologies | 0.1 | -29% | $3,646,157 |
| MHC | Manhattan Corp Ltd | 0.0065 | -28% | $10,683,951 |
| HCT | Holista CollTech Ltd | 0.017 | -26% | $4,739,601 |
| AQX | Alice Queen Ltd | 0.0015 | -25% | $4,400,500 |
| KEY | KEY Petroleum | 0.0015 | -25% | $2,951,892 |
| PNX | PNX Metals Limited | 0.003 | -25% | $15,554,202 |
| RBR | RBR Group Ltd | 0.003 | -25% | $4,220,214 |
| RGS | Regeneus Ltd | 0.015 | -25% | $4,290,117 |
| ROO | Roots Sustainable | 0.0015 | -25% | $1,558,829 |
| YPB | YPB Group Ltd | 0.003 | -25% | $1,219,638 |
| MCM | Mc Mining Ltd | 0.21 | -25% | $100,414,601 |
| LAW | Law Finance | 0.04 | -25% | $2,554,706 |
| AW1 | American West Metals | 0.066 | -24% | $10,486,172 |
| ASN | Anson Resources Ltd | 0.215 | -23% | $259,216,083 |
| IPB | IPB Petroleum Ltd | 0.01 | -23% | $4,107,329 |
| WGX | Westgold Resources | 1.0325 | -22% | $516,248,776 |
| CLU | Cluey Ltd | 0.2925 | -22% | $40,446,968 |
| CUF | Cufe Ltd | 0.018 | -22% | $17,390,023 |
| ETR | Entyr Limited | 0.018 | -22% | $30,154,022 |
| DOU | Douugh Limited | 0.011 | -21% | $11,788,030 |
| VKA | Viking Mines Ltd | 0.011 | -21% | $12,303,101 |
| WA1 | WA1 Resources | 1.335 | -21% | $49,289,845 |
| BTR | Brightstar Resources | 0.019 | -21% | $15,753,448 |
| LMLND | Lincoln Minerals - Ordinary New | 0.019 | -21% | $16,978,041 |
| ZMM | Zimi Ltd | 0.05 | -21% | $4,365,044 |
| GLL | Galilee Energy Ltd | 0.155 | -21% | $52,473,312 |
| CYM | Cyprium Metals Ltd | 0.1075 | -20% | $80,321,813 |
| PLY | Playside Studios | 0.415 | -20% | $168,740,418 |
| AD1 | AD1 Holdings Limited | 0.008 | -20% | $5,605,850 |
| ATH | Alterity Therap Ltd | 0.008 | -20% | $21,747,766 |
| CT1 | Constellation Tech | 0.004 | -20% | $5,884,801 |
| GSN | Great Southern | 0.024 | -20% | $14,793,925 |
| NME | Nex Metals Explorat | 0.02 | -20% | $5,576,380 |
| NTL | New Talisman Gold | 0.016 | -20% | $6,396,145 |
| MPA | Mad Paws | 0.14 | -20% | $48,001,208 |
| ICI | Icandy Interactive | 0.045 | -20% | $60,398,356 |
| AKP | Audio Pixels Ltd | 6.67 | -20% | $217,545,118 |
| SVL | Silver Mines Limited | 0.165 | -20% | $251,907,268 |
| SNS | Sensen Networks Ltd | 0.051 | -19% | $34,611,799 |
| TAS | Tasman Resources Ltd | 0.008 | -19% | $6,711,677 |
| BTC | BTC Health Ltd | 0.03 | -19% | $9,019,083 |
| GPR | Geopacific Resources | 0.022 | -19% | $12,508,587 |
| HMG | Hamelin Gold | 0.11 | -19% | $11,550,000 |
| SPD | Southern Palladium | 0.64 | -18% | $31,016,395 |
| BGE | Bridge SaaS | 0.053 | -18% | $1,480,837 |
Lithium and gold exploration company Manhattan Corp (ASX:MHC) is trending lower this week despite announcing it has entered into a binding agreement to acquire 100% of the shares in Afro Mining which via its subsidiary Continental Lithium, has the rights to 109 mineral licences comprising the Chebogue lithium project in Nova Scotia, Canada.
MHC will become the largest tenement holder in Nova Scotia for exploration of lithium and critical metals and will hold the strike extension ground adjacent to the Brazil Lake pegmatites, which is one of its priority targets.