Weekly ASX Small Cap Wrap: Market powers on despite lockdowns

Despite a state-wide lockdown in Victoria and Queensland extending restrictions after Sydney’s runaway Delta variant outbreak spread to its neighbours, punters still appear to be positive with the ASX200 up 0.84% over the past week as at midday.

Positive jobs news might play a role in this with Australia’s unemployment rate falling to its lowest level in a decade.

However, this came with a warning that the lockdowns could derail economic recovery, a point highlighted by a fall in hours worked in Victoria last month.

Likewise while the entry of PayPal into Australia’s buy now, pay later sector hit local BNPL players, the rest of the market shrugged off the blow.
 

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for July 9 – July 16 [intraday]:

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

Bathurst Resources (ASX:BRL) +135%

Victory is always sweet and that’s very much the case for Bathurst after the Supreme Court in New Zealand upheld the company’s appeal against the case that was brought against it by L&M Coal Holdings.

While the Supreme Court found that the US$40m performance payment had been triggered, it also ruled that Bathurst can rely on the Royalty Deed which forms part of the original agreement.

The ruling means that as long as the relevant royalty continues to be paid, payment of the performance payment can be indefinitely deferred.

Youfoodz (ASX:YFZ) +73%

Shares in Youfoodz soared after the company received a takeover bid from Hellofresh.

Both the board and majority shareholder RGT Capital have already backed the 93c per share bid.

iCar Asia (ASX:ICQ) +66%

Likewise, shares in iCar soared after the company received a conditional, non-binding indicative proposal from Carsome Group.

Carsome is offering to acquire all shares in iCar it does not already own for 55c cash per share and has already to acquire more than 89.4 million iCar shares – or about 19.9% of iCar’s shares – from Catcha Group.
 

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks for July 9 – July 16 [intraday]:

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

Berkeley Energia (ASX:BKY) -38%

Shares in Berkeley Energia dropped after it was knocked back for the grant of the Authorisation for Construction for its uranium concentrate plant in Spain.

The company said it will strongly defend its position and will immediately consider the range of legal options available to it in relation to the adverse decision by the Nuclear Safety Council.