Well, that was brutal.
After two days of steady falls, local markets executed a proper face-plant on Tuesday as the microcap Emerging Markets index slumped by 5.03%.
For some recent history, you’d have to go back to the heady days of March 2020 to find an intraday selloff as savage as that.
Combined with the previous two trading sessions, the composite microcap index has now slumped by ~12% — moving into official correction territory (a fall of +10%) in just three days.
As financial conditions start to tighten, local investors had to deal with a hot domestic inflation print this morning as trimmed mean CPI — the RBA’s preferred measure of inflation — came in at its highest q/q level since 2008.
The trimmed mean measure “was a massive overshoot on the RBA’s forecast for underlying inflation”, CBA said.
As a result, CBA economists now expect the first RBA rate hike to happen in August — ahead of its prior forecast (November).
Turning to global markets, things are looking grim as well. US futures are live, and pointing to falls of more than 1% on the S&P500 in afternoon Asian trade.
TODAY’S BIGGEST SMALL CAP WINNERS
(Stocks highlighted in yellow rose after making announcements during the trading day).
Scroll or swipe to reveal table. Click headings to sort.
Code Company Price % Volume BAS Bass Oil Ltd 0.002 33.3% 2,784,068 AFW Applyflow Limited 0.005 25.0% 10,988,244 PNX PNX Metals Limited 0.006 20.0% 3,825,786 CDA Codan Limited 9.78 16.8% 2,647,734 IGN Ignite Ltd 0.14 16.7% 4,185 MYG Mayfield Group Ltd 0.35 16.7% 20,000 1ST 1St Group Ltd 0.014 16.7% 2,994,204 MBK Metal Bank Ltd 0.007 16.7% 107 OEX Oilex Ltd 0.0035 16.7% 1,098,438 BEZ Besragoldinc 0.12 14.3% 233,541 SMS Starmineralslimited 0.2 14.3% 51,129 PGO Pacgold 0.8 12.7% 596,293 RNO Rhinomed Ltd 0.2925 12.5% 840,186 AUH Austchina Holdings 0.009 12.5% 28,853,211 SIH Sihayo Gold Limited 0.009 12.5% 20,000 AUQ Alara Resources Ltd 0.028 12.0% 1,709,850 MOQ MOQ Limited 0.155 10.7% 130,033 RGL Riversgold 0.021 10.5% 1,186,240 TOE Toro Energy Limited 0.021 10.5% 58,662,663 MOB Mobilicom Ltd 0.044 10.0% 20,114 SZL Sezzle Inc. 2.35 9.8% 4,432,425 TGM Theta Gold Mines Ltd 0.17 9.7% 62,000 BID Bill Identity Ltd 0.23 9.5% 112,148 HHR Hartshead Resources 0.023 9.5% 1,181,837 RDG Res Dev Group Ltd 0.07 9.4% 543,731
Among stocks with news, winners were more few and far between on Tuesday, although did someone say BNPL?
Penny stock recruitment business Applyflow Ltd (ASX:AFW) got a boost after announcing it had booked the first revenues for Applypay — its instalment-based finance offering for recruitment services fees.
The platform “permits employers to use Applypay to pay recruiter invoices upfront in return for employers making four equal monthly instalment payments to Applypay”, AFW said.
Also on the winner’s list was digital health player 1st Group (ASX:1ST), which inked a $2.5m equity funding deal with private equity firm Adcock in connection with the acquisition of telehealth platform Visionflex.
And wearable nasal technology company Rhinomed (ASX:RNO) got a lift following the release of its December 4C filing, where the company flagged a 63% lift in cash receipts to $2.53m.
TODAY’S BIGGEST SMALL CAP LOSERS
(Stocks highlighted in yellow fell after making announcements during the trading day).
Scroll or swipe to reveal table. Click headings to sort.
Code Company Price % Volume CLE Cyclone Metals 0.003 -33.3% 9,487,679 OAR OAR Resources Ltd 0.006 -33.3% 65,734,856 CGB Cann Global Limited 0.002 -33.3% 4,741,946 CAD Caeneus Minerals 0.009 -30.8% 87,092,133 BNR Bulletin Res Ltd 0.1 -25.9% 7,140,901 NPM Newpeak Metals 0.0015 -25.0% 114,468,126 NTL New Talisman Gold 0.0015 -25.0% 442,906 VMG VDM Group Limited 0.0015 -25.0% 1,748,635 ALV Alvomin 0.27 -22.9% 596,803 HCD Hydrocarbon Dynamic 0.011 -21.4% 1,707,438 VAR Variscan Mines Ltd 0.044 -21.4% 2,232,591 LRV Larvotto Resources 0.15 -21.1% 1,373,942 NAG Nagambie Resources 0.05 -20.6% 1,112,906 1MC Morella Corporation 0.027 -20.6% 83,573,676 CCE Carnegie Cln Energy 0.002 -20.0% 8,000,148 PCL Pancontinental Energ 0.002 -20.0% 175,514,952 SE1 Sensera Ltd 0.016 -20.0% 2,783,287 YPB YPB Group Ltd 0.002 -20.0% 1,439,801 NIS Nickelsearch 0.205 -19.6% 1,307,257 WR1 Winsome Resources 0.37 -19.6% 6,173,917 SLZ Sultan Resources Ltd 0.165 -19.5% 2,962,131 RDM Red Metal Limited 0.105 -19.2% 1,052,841 AZL Arizona Lithium Ltd 0.13 -18.8% 61,993,755 TEM Tempest Minerals 0.022 -18.5% 7,308,384
ANNOUNCEMENTS YOU MAY HAVE MISSED
All bets are now live in New York for online gaming company PointsBet Holdings (ASX:PBH) in New York.
PBH today announced its wholly-owned subsidiary PointsBet New York LLC has successfully launched online and mobile sports betting in New York. Shares in the company fell almost 9% in Tuesday trade.
New York marks the ninth operational state for PointBet’s premium sports betting product following other launches in New Jersey, Iowa, Indiana, Illinois, Colorado, Michigan, West Virginia and Virginia.
Rectifier Technologies (ASX:RFT) which services the home and car batteries markets has renewed its exclusive supplier agreement with Brisbane-based EV charger maker Tritium (NASDAQ:DCFC,DCFCW).
Tritium commenced trading on the Nasdaq this month following a merger with a Special Purpose Acquisition Company (SPAC), a so-called “blank cheque” company.
Rectifier will provide a high-powered power supply for Tritium’s range of high-powered chargers (HPC) through the agreement which is effective until March 31, 2023.
Gateway Mining (ASX:GML) and DiscovEx Resources (ASX:DCX) have announced encouraging soil sampling results at their Edjudina joint venture in Western Australia.
Results at the Hornet East Prospect show a continuous +10ppb gold anomaly, open to the south that has been defined across multiple sample lines and extends for approximately 1.2km.
And lastly, Corporate Travel Management (ASX:CTD) has completed a $25 million share placement plan (SPP) as part of its $100m acquisition of Helloworld Corporate Travel.
A total of ~1.2 million shares will be issued under the SPP at $21 per share, the lower end of a five-day VWAP of $21.54 up to and including January 20, 2022, when it closed.
Managing Director and CEO James Pherous said the strong support for the capital raise from retail and institutional investors is an endorsement of the company’s acquisition of Helloworld Corporate.
TRADING HALTS
The following stocks went into halts today and are due to recommence trading in the coming days.
Alloggio Group (ASX:ALO) — Acquisition
Agrimin Ltd (ASX:AMN) — Capital raising
The post Closing Bell: Microcaps bloodbath continues as US stock futures fall again appeared first on Stockhead.
