• The ASX benchmark has gained  0.20% on Friday and ended up 1.5% for the week
  • Small cap index (XEC) falls 0.37% on Friday to end week down 0.88% 
  • BSA rallies ~78% this week on news it’s selling its APS Maintain business to CBRE Group

 

There’s good news and bad news as we approach the end of the year. We’ve all been barracking for a Christmas reprieve and rally heading into December, after what can only be described as a tough year for global markets.  But while the big end of town has done well in the last full week of November, the small and mid caps have slipped back.

The S&P/ASX Emerging Companies (XEC) is a benchmark for Australia’s micro-cap companies. It contains up to 200 stocks that ranked between 350 and 600 by float-adjusted market capitalisation at the time of their index inclusion.

S&P/ASX 200 (XJO) is Australia’s leading benchmark index, home to the the top 200 ASX listed companies by float-adjusted market capitalisation.

So just how did the two do this week? Well by 4pm (AEDT) on Friday the XEC was down 0.88% for the past five days but in a positive sign it is up 4.72% in the past month, on the road to recovering some of the 2022 losses, down ~21.5% year to date.

The XJO fared better up 1.50% for the week and 6.54% for the month. It could do still do with a Christmas rally though to further reduce some of the losses this year, down 4.39% year to date.

In a positive sign, all sectors were in the green with utilities leading the gainers, up 4.76% followed by industrials up 2.62%.  Both sectors have fared well in the past month with utilities up ~28% and industrials up ~9%.

Materials, while not up as much this week at 0.42%, is up 11.56% for the month, while the real estate sector, which rose 2.21% in the past five days, is up 9.18% in the past month.

Oil was down -9% for the week due to a price cap on Russian oil, which i due to come into force on December 5. European Union governments remained divided over what level to cap Russian oil prices at to curb Moscow’s ability to pay for its war in Ukraine without causing a global oil supply shock.

Iron ore was also lower by 0.5%, while metal prices also mainly fell around 3%.

US bond yields were down more than 10bp due to US Federal Open Market Committee (FOMC)  release of minutes from its November meeting on Wednesday.  Basically all bond yields globally fell during the week with release of the FOMC minutes, which showed US Federal Reserve officials expect to switch to smaller interest rate increases soon.

Some officials expressed concern over the impact rate increases could have on financial stability and the economy.

AUD/USD rose by around 1 pip, from 66.5c to around 67.5c.

 

ASX IPOs this week

Lightning Minerals (ASX:L1M)

Listed: 22 November

IPO: $7m at $0.20

This explorer is focused on high-demand battery minerals including lithium, nickel, cobalt, copper and PGEs, with four project areas in WA.

Its main focus are the Dundas licences – in particular the Dundas South project which is in close proximity to Alliance Mineral Assets’  Bald Hill lithium and tantalum project, Greenstone Resources’ (ASX:GSR) Mt Thirsty cobalt-nickel project and Liontown Resources’ (ASX:LTR) Buldania/Anna lithium project.

LM1 has seen its share price rise 2.17% since listing.

 

ASX SMALL CAP LEADERS:

Here are the best performing ASX small cap stocks for November 21 – November 25:

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BSA (ASX:BSA) this week rallied on news that it’s selling off its APS Maintain business to NYSE-listed Fortune 150 company CBRE Group, for a smart $20 million.

BSA said the divestment of the APS Maintain business represents the next stage of stabilising, refocusing and transforming the BSA Group. The transaction will enable BSA to focus on the telecommunication, utility and major fire construction sectors.

The company said it has a market leading position and remains committed to successfully delivering work for key clients including nbn, Foxtel, and tier one contractors.

 

ASX SMALL CAP LAGGARDS:

Here are the least performing ASX small cap stocks for November 21 – November 25:

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