Weekly ASX small cap wrap: Moving house is never fun
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It’s the end of another week at the start of a new year and…things are happening. (Mostly good things, as far as the market is concerned).
The ASX Emerging Companies index for microcap stocks reversed two straight falls on Monday and Tuesday and is on track to close at its highest level since 2011.
After two months of legal challenges, fake election claims and an attack on the Capitol, there are signs Donald Trump is preparing to leave the White House.
So too, apparently, is this bust of Abraham Lincoln (?):
SPOTTED: Bust of President Abraham Lincoln leaving the West Wing about an hour ago. pic.twitter.com/QOulIk1dQE
— Jeremy Art (@cspanJeremy) January 14, 2021
Poaching a couple of cheeky items on your way out the door — rental tenants the world over could relate.
Although we’re not sure if Trump will be required to complete a professional clean and hand back the keys to the agent.
Of course, this all means Joe Biden is set to assume the Presidential office on January 20th, and by the looks of things he’s getting ready to spend some cash.
With additional US government stimulus in the works, gold prices edged higher while oil is back at a 10-month high to end the week.
Oh, and have you heard of Tolga Kumova? The mining expert reckons Aussie resources are set to benefit from the Democrats’ desire for a big push on US infrastructure spending.
ASX tech stocks weren’t left out, as the well-populated BNPL sector — a 2020 market darling — posted more big gains to end the week. Afterpay (ASX:APT) is now a $32bn company valued at ~$130 per share.
No less than 42 ASX small caps posted a weekly gain of at least 40 per cent this week.
After a couple of years in the investor wilderness, lithium is back with a bang.
Small cap gains this week were led by lithium player Sayona Mining (ASX:SYA), which jumped sharply after announcing an investment and off-take agreement with US-based Tesla supplier Piedmont Lithium (ASX:PLL).
Biotechnology company Nanollose (ASX:NC6) also stood out on a seven-day return basis, after posting two straight daily gains of more than 50 per cent.
That followed news that NC6 is advancing an eco-friendly fabric manufacturing solution with Grasim Industries, a subsidiary of Indian conglomerate Aditya Birla Group (annual revenues: ~US50bn).