• ASX 200 up 2.2% this week, ASX Emerging Companies (XEC) index is 5.3% higher
  • Global markets rise, Nasdaq 7% up/strong
  • Sarytogan makes strong IPO, Victory finds REE

Global equity markets rallied this week with the Dow Jones Industrial Average up 6% and the techno-boosted Nasdaq finding 7%.

Closer to home, Japanese indices rallied about 4%, while Chinese stocks are down slightly, by about 0.3% on average.

The S&P/ASX Emerging Companies (XEC) index is 5.3% stronger and the ASX 200 has eked out 2.2% for the week.

The market boosters switched on after a few weeks of solid declines –  and the advice from overnight experts captures the uncertainty.

On the one hand BlackRock CEO Larry Fink told investors America’s economic woes are entirely fixable so investors can afford to relax a bit. Stop panicking about inflation, the BlackRock CEO told CNBC: “We’re going to get through this.”

Earlier in the week, Goldman Sachs CEO David Solomon said that actually, everyone, inflation is “deeply entrenched” in the global economy. And Goldman is playing it cautious, he said, while it remains unclear whether the situation will improve later this year.

So the buy-in this week just throws up more questions about whether we’ve struck the bottom, or if this is all just dead cats and high buildings.

Diana Mousina, senior economist at AMP Investments, says the latest inflation data hasn’t moved AMP’s dial.

“Our view has not changed –   we think the risk is of more downside to equities until there are clearer signs that inflation has peaked (which means central banks can pause on rate hikes) and until economic data troughs (but hopefully avoids a recession). On a 6-12 month view, we are more optimistic on shares as inflation recedes, central banks stop raising interest rates (and maybe even cut rates) and a deep recession is avoided.”

The US 2/10-year bond spread remained like an upside down boat inverted this week.

European bond yields were a tad higher because of a wee spot of old school Italian political mayhem – Italian 10-year yields are up to 3.5% from 3.2% at the start of the week.

After three key parties in Italian Parliament cast a “no confidence” vote over the government, Italian Prime Minister Mario Draghi resigned which means that an election will occur, on 25 September.

Italy likes political turmoil, so we’re not losing sleep. Over the last 160 years of Italian history there’s been some 132 governments. And Silvio Berlusconi had most of them.

ASX IPOs This Week

Sarytogan Graphite (ASX:SGA)

Monday IPO: $8.5m at $0.20

The explorer listed Monday and made some fantastic gains across several sessions. SGA has its eyes on the Sarytogan Graphite Project in Central Kazakhstan where drilling kicked off late last month.

Kazakhstan, aside from being a great place to take the missus for a quick lap around the Urals, is also an established mining jurisdiction right in the middle of the largest battery manufacturers in Europe and China.

The project already has a mineral resource of 209 Mt at 28.5% total graphitic carbon (TGC) for 60Mt contained. And while I’m not going to read the presentation, I will leave you keen beans a link. The project already has a mineral resource of 209Mt at 28.5% total graphitic carbon (TGC) for 60Mt contained graphite.

ASX SMALL CAP WINNERS:

Here are the best performing ASX small cap stocks for July 18 – July 22:
Swipe or scroll to reveal full table. Click headings to sort:

Code Company Price % Market Cap
VPR Volt Power Group 0.003 100% $14,016,800
WBE Whitebark Energy 0.002 100% $5,648,219
EVE EVE Health Group Ltd 0.0015 50% $5,050,483
MEB Medibio Limited 0.0015 50% $2,756,490
PRM Prominence Energy 0.003 50% $4,849,218
T3D 333D Limited 0.0015 50% $3,034,297
SIT Site Group Int Ltd 0.004 33% $2,523,735
DOU Douugh Limited 0.037 32% $16,655,920
SZL Sezzle Inc. 0.315 26% $50,202,207
BTE Botala Energy 0.175 21% $7,563,200
ABE Ausbondexchange 0.3 20% $8,719,046
FRM Farm Pride Foods 0.18 20% $8,277,026
HMG Hamelin Gold 0.12 20% $11,000,000
GLV Global Oil & Gas 0.003 20% $4,683,387
4DX 4Dmedical Limited 0.62 19% $108,656,997
EVZ EVZ Limited 0.195 18% $19,824,076
TYX Tyranna Res Ltd 0.021 17% $27,582,492
WMG Western Mines 0.175 17% $5,494,875
X2M X2M Connect Limited 0.14 17% $11,300,769
TTB Total Brain Ltd 0.05 16% $5,750,009
IOU Ioupay Limited 0.094 16% $44,874,977
GBE Globe Metals &Mining 0.096 16% $38,671,557
ZIP ZIP Co Ltd.. 0.895 15% $533,150,447
M2R Miramar 0.1 15% $5,584,240

 

Victory Goldfields (ASX:1VG) made a super Rare Earth Elements (REE) discovery this week including critical Heavy Rare Earth Elements  (HRE) from follow-up assays at its 100% owned Mafeking and North Stanmore project in WA.

The stock jumped into the ionosphere this week, after word spread on Wednesday morning of the latest results from follow up assays that initially reported ‘significant’ anomalous values of yttrium at the project in the Cue goldfields, about 650km due northeast of Perth.

Fusion-ICPMS assays from 25 air-core 4m composite samples report high concentrations of Total Rare Earth Oxides (TREO) that exhibit a high ratio of Heavy Rare Earth Oxides (HREO) and golg:

  • Average (HREO) of 419ppm
  • Average (TREO) of 1020ppm
  • Highest (TREO) concentration of 3872ppm
  • Intersections up to 16m and remain open
  • Current strike length over 1km and a width of 200m that remains open
  • Highest Gold intersection of 0.5 g/t

1VG says the results indicate a High HREO/TREO ratio of 40% with reported magnet REOs (Pr), (Nd), (Tb), and (Dy) totalling 24.6%.

A delighted executive director Brendan Clark described the discoveries as a significant moment for Victory and its shareholders.

 

ASX SMALL CAP LOSERS:

Here are the best performing ASX small cap stocks for July 18 – July 22:

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

Code Company Price % Market Cap
ANL Amani Gold Ltd 0.001 -33% $35,540,162
AFW Applyflow Limited 0.0015 -25% $5,915,216
CLE Cyclone Metals 0.003 -25% $24,416,948
CFO Cfoam Limited 0.004 -20% $3,669,203
MGG Mogul Games Grp Ltd 0.002 -20% $8,154,150
XST Xstate Resources 0.002 -20% $8,037,954
DME Dome Gold Mines Ltd 0.2 -18% $85,775,513
SCT Scout Security Ltd 0.04 -17% $7,362,943
JRV Jervois Global Ltd 0.4525 -15% $813,066,764
LSR Lodestar Minerals 0.006 -14% $12,169,061
CVR Cavalier Resources 0.155 -14% $5,470,029
MDI Middle Island Res 0.105 -13% $14,690,187
MRL Mayur Resources Ltd 0.075 -12% $20,531,211
RNO Rhinomed Ltd 0.16 -11% $51,429,545
PNX PNX Metals Limited 0.004 -11% $19,998,260
HOR Horseshoe Metals Ltd 0.025 -11% $15,454,401
GCX GCX Metals Limited 0.051 -11% $10,589,386
T3K Tek Ocean Group 0.18 -10% $6,546,900
AD1 AD1 Holdings Limited 0.018 -10% $13,516,287
ADR Adherium Ltd 0.009 -10% $22,082,511
DCX Discovex Res Ltd 0.0045 -10% $15,024,305
WML Woomera Mining Ltd 0.0145 -9% $10,989,329
AX1 Accent Group Ltd 1.375 -9% $820,928,073
CV1 Cv Check Ltd 0.1 -9% $47,765,561
PH2DD Pure Hydrogen Corp 0.28 -9% $105,204,088