S&P/ASX 200 fell 2.94% in April as all Australian equity indexes fell except Emerging Companies
Utilities and Materials the only ASX sectors in positive territory for April, up 4.77% and 0.61% respectively
Rincon Resources tops the winners chart in April as news of its uncovering of a ‘bullseye’ target excite investors
After a five-month winning streak Australia’s S&P/ASX 200 closed April down 2.94% with large-cap companies continuing to lag and only emerging companies in the black with a 2.76% gain.
Looking at key economic points released in April and Australia’s inflation came in higher than expected during the March quarter, lessening expectations of interest rate cuts later this year.
Consumer Price Index data from the Australian Bureau of Statistics showed prices increased by 1% during the March quarter, leaving the annual inflation rate at 3.6%.
Economists had forecast inflation to increase by 0.8% in the March quarter, and by 3.5% annually.
In the US – the world’s largest economy – markets were rattled in April following the latest round of economics data, including a soft US GDP of just 1.6%, and inflation increasing by 3.4% in Jan-Mar, compared to an increase of 1.8% in the final three months of 2023.
“If growth continues to slowly decelerate, but inflation strongly takes off again in the wrong direction, the expectation of a Fed interest rate cut in 2024 is starting to look increasingly more out of reach,” says Olu Sonola at Fitch.
Heightening tensions in the Middle East including Israel and Iran further spooked markets in April.
IG market analyst Tony Sycamore told Stockhead he expects a slower start to May trading after a rougher April.
“The falls in April came about as firmer inflation data reduced the chances of rate cuts both in Australia and the US, as well as rising geopolitical tensions which weighed on investor sentiment,” he says.
“Ongoing uncertainty around inflation, interest rates and geopolitical tensions on top of a lack of stocks offering investors exposure to AI technology will likely see a cautious start to trading for the S&P/ASX200 in May.”
All four of Australia’s Big Banks seem currently on the same page in terms of possible interest rate relief, with expectations of just one rate cut by the RBA this year, with November the month they’ve pegged it to happen.
Chart via S&P
Utilities top performer in April
The S&P/ASX 200 sectors largely moved lower, led down by Real Estate, which fell 8%
after being the winning sector in March. Utilities advanced the most with a 5% gain and Materials also remained in positive territory supported by strength in metal prices.
Chart via S&P
All equity factors fall in April
S&P says equity volatility rose amid a market correction with the S&P/ASX 200 VIX finished April two points up at a 12 level.
Chart via S&P
Fixed income back in negative territory
S&P says bonds remained under pressure in Australia, as inflation proved sticky in the first quarter and bolstered the case for the RBA to hold rates higher for longer.
Chart via S&P
Here are the 50 best performing ASX stocks for April:
Scroll or swipe to reveal table. Click headings to sort.
CODE COMPANY LAST SHARE PRICE APRIL RETURN % MARKET CAP RCR Rincon Resources 0.077 208% $17,028,655.03 RNX Renegade Exploration 0.018 200% $18,066,055.05 MSI Multistack International 0.014 180% $1,908,254.94 WMG Western Mines 0.415 159% $31,159,520.53 SUM Summit Minerals 0.155 146% $7,386,854.69 M4M Macro Metals Limited 0.017 143% $54,945,134.85 FXG Felix Gold Limited 0.08 129% $16,577,209.04 MGA Metals Grove Mining 0.06 129% $2,232,030.00 BSE Base Res Limited 0.25 117% $294,502,962.50 LNR Lanthanein Resources 0.006 100% $11,729,453.42 SIH Sihayo Gold Limited 0.002 100% $24,408,512.36 PSC Prospect Res Ltd 0.16 100% $74,133,113.92 CYM Cyprium Metals Ltd 0.036 89% $54,889,643.70 CHW Chilwa Minerals 0.395 88% $18,120,625.40 LYN Lycaon Resources 0.33 83% $14,538,562.83 NPM Newpeak Metals 0.02 82% $2,272,367.98 SKS SKS Tech Group Ltd 0.72 80% $79,055,535.60 MSB Mesoblast Limited 0.99 78% $1,130,366,272.86 LU7 Lithium Universe Ltd 0.033 74% $13,585,997.60 BVR Bellavista Resources 0.18 71% $8,929,974.96 EPM Eclipse Metals 0.01 67% $22,308,555.24 MKL Mighty Kingdom Ltd 0.005 67% $12,487,998.51 LSA Lachlan Star Ltd 0.066 65% $13,699,830.87 DCG Decmil Group Limited 0.28 65% $43,564,124.24 AIS Aeris Resources Ltd 0.255 65% $246,719,012.70 ASE Astute Metals NL 0.044 63% $18,062,857.56 GLL Galilee Energy Ltd 0.053 61% $18,006,466.08 CMB Cambium Bio Limited 0.008 60% $6,128,738.28 GTI Gratifii 0.008 60% $12,896,359.77 SLS Solstice Minerals 0.16 60% $16,053,889.44 WA1 WA1 Resources 17.26 59% $1,058,665,642.64 EMH European Metals Holdings 0.445 59% $55,001,153.17 DTM Dart Mining NL 0.027 59% $6,977,687.54 SDV Scidev Ltd 0.365 59% $69,278,285.17 OMX Orange Minerals 0.038 58% $3,258,506.54 CY5 Cygnus Metals Ltd 0.08 57% $23,324,731.12 WGR Western Gold Resources 0.036 57% $5,532,781.90 WR1 Winsome Resources 1.375 56% $262,329,445.13 EXR Elixir Energy Ltd 0.11 55% $124,591,532.45 ARD Argent Minerals 0.017 55% $21,959,903.03 POD Podium Minerals 0.051 55% $23,192,085.83 NNG Nexion Group 0.02 54% $4,046,157.08 NWM Norwest Minerals 0.043 54% $16,689,138.93 EZZ EZZ Life Science 0.89 53% $39,527,748.00 ENR Encounter Resources 0.375 53% $168,741,770.25 CR1 Constellation Resources 0.175 52% $10,374,074.55 14D 1414 Degrees Limited 0.0865 52% $20,601,577.07 SPD Southern Palladium 0.5 52% $21,539,163.50 SBM St Barbara Limited 0.265 51% $216,762,150.70 GBZ GBM Resources 0.012 50% $13,880,266.67
Resource companies dominated the list of ASX winners in April. Rising critical metals junior player Rincon Resources (ASX:RCR) topped the winners chart in April, up more than 200% as news of its uncovering of a ‘bullseye’ target at its project in the West Arunta region of WA drew attention of investors.
Dubbed Avalon, RCR says the target is “of similar size and character” to WA1 Resources’ (ASX:WA1) Luni carbonatite, and IOCG (iron oxide copper-gold) deposits like Prominent Hill and Ernest Henry.
Western Mines (ASX:WMG) was up in April after positive announcements including a ~750m deep drill hole hit ~700m of rock containing “disseminated nickel sulphide mineralisation and numerous sets of remobilised nickel sulphide veinlets” at the Mulga Tank project in WA.
As Stockhead’s Reuben Adams noted these veinlets — confirmed by spot pXRF up to 42.2% nickel — appear oblique to the drill core “indicating a possible source at depth”.
WMG also announced it had been granted two awards, totalling $318k to fund drilling at the Mulga Tank project, under the WA State Government’s Co-funded Exploration Drilling Program, part of the Exploration Incentive Scheme (EIS).
Here are the 50 worst performing ASX stocks for April:
Scroll or swipe to reveal table. Click headings to sort.
CODE COMPANY LAST SHARE PRICE APRIL RETURN % MARKET CAP DUB Dubber Corp Ltd 0.054 -60% $30,859,621.27 ZNO Zoono Group Ltd 0.04 -56% $8,548,962.40 CLZ Classic Min Ltd 0.008 -53% $2,480,275.88 BXN Bioxyne Ltd 0.006 -50% $12,279,872.39 MMM Marley Spoon SE 0.042 -50% $4,944,424.93 RFT Rectifier Technologies 0.009 -50% $12,437,855.52 ADR Adherium Ltd 0.02099 -48% $7,140,499.56 MCL Mighty Craft Ltd 0.013 -48% $4,746,718.15 AVH Avita Medical 2.69 -46% $161,923,796.80 THB Thunderbird Resource 0.035 -46% $6,424,642.74 MXO Motio Ltd 0.016 -45% $4,291,173.54 ECG Ecargo Holdings 0.017 -45% $10,459,250.00 M2R Miramar 0.01 -44% $1,860,869.30 NGS NGS Ltd 0.005 -44% $1,256,136.99 RMX Red Mount Mining 0.001 -43% $2,673,576.04 ADO Anteotech Ltd 0.021 -43% $50,577,291.07 AIV Activex Limited 0.007 -42% $1,508,518.04 LVH Livehire Limited 0.019 -41% $6,991,471.48 PAA PharmAust Limited 0.22 -41% $86,903,007.18 BMO Bastion Minerals 0.006 -40% $2,583,503.07 CTN Catalina Resources 0.003 -40% $3,715,460.68 EMUDA EMU NL 0.018 -40% $1,214,862.77 RR1DA Reach Resources Ltd 0.009 -40% $6,642,036.43 SIS Simble Solutions 0.003 -40% $2,097,116.86 VTI Vision Tech Inc 0.11 -39% $6,023,147.13 SAN Sagalio Energy Ltd 0.005 -38% $1,023,300.65 SEN Senetas Corporation 0.013 -38% $20,426,683.75 TML Timah Resources Ltd 0.026 -38% $2,307,753.79 H2G Greenhy2 Limited 0.006 -38% $2,512,534.97 CHR Charger Metals 0.079 -37% $6,116,199.75 ASP Aspermont Limited 0.012 -37% $29,467,616.44 LPD Lepidico Ltd 0.003 -37% $22,914,923.84 KGN Kogan.Com Ltd 5.08 -36% $511,492,972.44 IRX Inhalerx Limited 0.032 -36% $6,072,542.62 JRV Jervois Global Ltd 0.016 -36% $43,240,330.96 ICU Investor Centre Ltd 0.021 -36% $6,367,158.86 AAU Antilles Gold Ltd 0.013 -35% $12,239,954.91 ASV Assetvisonco 0.013 -35% $9,435,875.35 VIT Vitura Health Ltd 0.12 -35% $69,104,854.56 PIL Peppermint Innovation 0.011 -35% $23,279,941.70 WAK Wakaolin 0.042 -35% $17,798,933.08 OLY Olympio Metals Ltd 0.045 -34% $3,161,777.94 MNB Minbos Resources Ltd 0.06 -34% $51,907,348.14 COB Cobalt Blue Ltd 0.092 -34% $38,800,228.76 GEN Genmin 0.105 -34% $71,949,090.78 GCR Golden Cross 0.002 -33% $2,194,512.22 MHC Manhattan Corp Ltd 0.002 -33% $5,873,959.55 MRQ MRG Metals 0.001 -33% $2,525,118.63 NVQ Noviqtech Limited 0.004 -33% $5,949,229.18 OAR OAR Resources Ltd 0.002 -33% $6,306,621.96
Dubber Corp’s (ASX:DUB) woes continued in April after the call recording technology company’s shares came out of a seven-week voluntary suspension on April 17.
In late February, the company halted trade after discovering that up to $26.6 million was missing after an audit. Dubber MD and CEO Steve McGovern was suspended on March 1 and fired on April 9 following an investigation. The company says it was “finalising the structure and terms of an equity capital raising to replenish its balance sheet”.
On April 10 DUB announced a $24.06 million capital raising, comprising an institutional placement to raise a ~$3.14 million and a one for one non-renounceable accelerated pro-rata entitlement offer to raise ~$20.92 million.
On April 30, DUB released its quarterly report where it noted revenue of $9.6m for Q3 FY24 was flat on Q2 FY24 and 29% up on pcp, “reflecting the disruption to the business experienced in the quarter following the announcement of the alleged misuse of funds in late February 2024”.
DXB says it liaised closely with its partners and customers during this period and “the disruption is expected to be short term”.
The post ASX April Winners: The best 50 stocks as inflation and Middle East tension cloud markets appeared first on Stockhead.
