• S&P ASX 200 closes 0.23% higher, while the emerging companies index also rises
  • Tech stock Megaport soars 40% on FY23 upgrade as new CEO prepares to start in May
  • Investors react favourably to positive quarterly results on last trading day of April

 

The S&P ASX 200 closed 0.23% higher on the last trading day of the week. The S&P ASX Emerging Companies index (XEC) – a benchmark for Australia’s micro-cap companies – rose 0.79%.

The Aussie bourse was boosted by strong gains in New York overnight as mega tech stocks including Amazon and Meta surged on earnings, and fears of a banking meltdown contagion eased.

The S&P 500 closed 2% higher, the Dow rose 1.5% and the tech-heavy Nasdaq was up 2.5%.

The big news of the day was Data centre/ NaaS stock Megaport (ASX:MP1)  which soared ~40% after announcing it now expects to report normalised EBITDA in FY23 in the range of $16m to $18m, and $41m to $46m in FY24.

The latest figures are materially above market consensus of $9m in FY23 and $30m in FY24.

The heavily shorted stock has seen added 607 new services in the March quarter, boosting monthly recurring revenue 14% on the December quarter to $14.1 million.  Total revenue for the March quarter was 3% higher than the December result to $38.1 million.

Michael Reid, the CRO at Cisco’s SaaS business, ThousandEyes, takes over as MP1’s new CEO, effective on May 15 after the resignation of Vincent English in March.

Chairman and founder Bevan Slattery has been at the helms since English’s resignation.

On Twitter MP1 was getting plenty of attention today, although it still has plenty of way to get back to its all-time highs where it flirted with $22/share in Nov 2021.

 

 

FROM THE HEADLINES

While many central banks have been raising rates in recent times to curb higher inflation Japan has struggled with low growth, low inflation and deflation for decades.

As a response it has had a ultra-low and stimulus monetary policy which under the first meeting chaired by new governor, Kazuo Ueda it is maintaining – for now at least.

As anticipated the Bank of Japan (BOJ) maintained its yield curve control (YCC) policy, which sets a -0.1% short-term interest rate target and a 0% target for the 10-year bond yield.

However, in a move seen as Ueda looking to phase out his predecessor’s stimulus program the BOJ adjusted its guidance regarding future policy and eliminated its commitment to keeping interest rates at “current or lower levels”.

Additionally, the BOJ stated that it would investigate the effects of various monetary easing strategies implemented in the past 25 years to combat deflation on the economy and prices.

“The Bank has decided to conduct a broad-perspective review of monetary policy, with a planned time frame of around one to one-and-a-half years,” the BOJ said in a statement.

Markets around Asia reacted to the news with Nikkei 225 and the Topix in Japan both rising 0.87% and 0.69% respectively.

The Hang Seng index in Hong Kong and the Shanghai Composite both rose by 0.65% while the South Korean Kozpi fell 0.12%.

 

TODAY’S ASX SMALL CAP LEADERS

Here are the best performing ASX small cap stocks:

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As mentioned Megaport was one of the leaders on the winners table today. Also on the winners list today were other tech stocks following the trend of US markets overnight. 

Investors also reacted favourably to various stocks releasing positive quarterly reports on the last trading day of April 2023.

 

TODAY’S ASX SMALL CAP LAGGARDS

Here are the least best performing ASX small cap stocks:

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LAST ORDERS

Law firm Slater & Gordon (ASX:SGH) checked out and officially delisted from the ASX after close of trade today following the acquisition of its remaining securities by Wright Nominee Co Pty Ltd, a wholly owned subsidiary of Allegro Funds Pty Ltd.

The board of SGH unanimously backed a takeover offer from Sydney-based Allegro Funds in February that saw it acquire 100% of the company for ~$78 million.

Under the off-market takeover offer, shareholders receive 55 cents per share held based on the 141 million shares currently on issue , the majority of which were held by a consortium led by Anchorage Capital Partners.

AuTECO Minerals (ASX: AUT) announced today exploration programs continue at the Pickle Crow Gold Project in Ontario, to build on the high-grade Mineral Resource that currently stands at 2.2Moz at 7.8g/t gold.

Further assay results from the winter exploration campaign are pending with detailed analysis and interpretations to follow, along with an update to the Mineral Resource.

AUT purchased Pickle Crow in 2020. It is one of Canada’s highest-grade historical gold mines which produced 1.5 million ounces of gold at a grade of 16g/t until 1966.

In addition, an extensive regional exploration program will be commencing to target key gold structures outside of the main mine trend, which has had little to no previous historic test work.

“I am very excited on what the future holds for the Pickle Crow Project as it reminds me of the early stages of the Bellevue Gold Project,” non-executive director Steve Parsons said.

“It is very rare to find such a high-grade gold project that has delivered consistent resource growth, with existing historic underground infrastructure to leverage from as well a significant landholding that has seen very limited exploration over the years.”

Meanwhile AUT said executive chairman Raymond Shorrocks will transition to non-executive chairman effective on May 1 2023.

 

TRADING HALTS

Alice Queen (ASX:AQX) –  Capital raising

Coolabah Metals (ASX:CBH) – Capital raising and acquisition

Riedel Resources (ASX:RIE)– Capital raising

Vanadium Resources (ASX:VR8) – Pending announcement on increase in Steelpoordrift Vanadium Project interest

Alliance Nickel – (ASX:AXN) – Pending announcement on material transaction

WA1 Resources (ASX:WA1) – Release of exploration results

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