Lunch Wrap: ASX bobs up and down, as iron ore stocks ride China's mega dam news
Iron ore pops on China dam dreams
Insignia jumps on $3.3bn buyout bid
After Monday's sharp stumble, the ASX opened Tuesday with a bit of fight, climbing 0.2% in the morning.
But by lunch in the eastern states, it was struggling to stay afloat, sinking to a narrow loss of 0.02%.
Overnight, Wall Street powered higher, with fund managers continuing to chase risk assets.
The S&P 500 cracked 6,300 for the first time, while earnings season kicks into top gear this week with the Magnificent Seven on deck.
On the macro front, the RBA's July meeting minutes dropped this morning, and they offered a bit more colour on why the board kept rates steady at 3.85%.
The decision, according to the minutes, came down to the RBA wanting to move 'cautiously', particularly with inflation now tracking closer to target.
A minority of board members were leaning toward a cut, citing downside risks, but the majority felt it would send the wrong message.
Back to the ASX, and miners were back in the driver's seat as iron ore jumped 3%, the highest it's been in four months.
The bounce was powered by hopes of more stimulus out of China, and its headline-grabbing plan to build the world's largest dam in Tibet. According to analysts, that mega project could give a decent jolt to demand for steel and concrete.
BHP (ASX:BHP) and Fortescue (ASX:FMG) climbed around 2% on the news, while Rio Tinto (ASX:RIO) surged 3%.
Champion Iron (ASX:CIA) also rallied 4% to its highest level since March after locking in a deal with Nippon Steel and Sojitz to jointly develop its Kami iron ore project in Canada.
While the miners flexed, it was a softer showing for the banks, the worst-performing sector by 12:45pm AEST:
Still in large caps news, Insignia Financial (ASX:IFL) surged 12% after US-based private equity firm CC Capital agreed to buy the lot in a $3.3 billion deal at $4.80 a share.
Over in the construction space, Fletcher Building (ASX:FBU) fell 1% after revealing it's weighing a potential sale of parts of its construction business following inbound interest.
ASX SMALL CAP WINNERS
Here are the best performing ASX small cap stocks for July 22 :
Security Description Last % Volume MktCap
IS3 I Synergy Group Ltd 0.012 300% 7,074,192 $5,118,900
MPA Mad Paws 0.130 73% 20,653,624 $30,468,169
VR8 Vanadium Resources 0.036 57% 17,604,059 $12,978,713
CUL Cullen Resources 0.006 50% 162,840 $2,773,607
PAB Patrys Limited 0.002 50% 121,448 $2,365,810
AON Apollo Minerals Ltd 0.007 40% 4,298,989 $4,642,284
ALR Altairminerals 0.004 33% 7,799,123 $12,890,233
SHP South Harz Potash 0.004 33% 56,178 $3,849,186
14D 1414 Degrees Limited 0.033 32% 119,612 $7,290,629
AIV Activex Limited 0.026 30% 5,941,874 $4,310,052
KGD Kula Gold Limited 0.009 29% 12,753,484 $6,448,776
BET Betmakers Tech Group 0.125 25% 13,417,818 $109,863,128
FHS Freehill Mining Ltd. 0.005 25% 50,000 $13,655,414
MMR Mec Resources 0.005 25% 155,000 $7,399,063
SP8 Streamplay Studio 0.009 21% 1,397,252 $8,969,552
OLI Oliver'S Real Food 0.006 20% 83,366 $2,703,660
PRM Prominence Energy 0.003 20% 200,000 $1,216,176
SLZ Sultan Resources Ltd 0.006 20% 444,069 $1,157,350
TFL Tasfoods Ltd 0.006 20% 334,313 $2,185,478
NTI Neurotech Intl 0.025 19% 2,350,715 $22,042,060
EVG Evion Group NL 0.032 19% 1,789,175 $11,742,839
LMG Latrobe Magnesium 0.013 18% 4,376,810 $28,892,490
LTP Ltr Pharma Limited 0.425 18% 1,184,604 $40,306,667
EXL Elixinol Wellness 0.020 18% 159,399 $3,913,254
Affiliate marketing platform, iSynergy Group (ASX:IS3) rocketed 300% before the ASX stepped in with a speeding ticket and slapped the stock with a trading halt. IS3 says it's now working on a response to the price query and reckons the halt should be lifted by Thursday, with nothing else to add for now.
Pet stock Mad Paws (ASX:MPA) has inked a $62 million takeover deal with US pet care giant Rover, with shareholders set to receive 14 cents a share in cash, an 87% premium to its last closing price. As part of the deal, it's offloading its Pet Chemist business to VetPartners for around $13 million and shutting down its Sash and Waggly brands. The board's backing the deal, and so are major holders.
Vanadium Resources (ASX:VR8) has locked in a binding two-year offtake deal with China Precious Asia for 100,000 tonnes per month of vanadium-rich magnetite direct shipping ore from its Steelpoortdrift project in South Africa. It's a major step in moving from developer to producer, though pricing still needs to be finalised by August 30 and mining is yet to begin.
ASX SMALL CAP LOSERS
Here are the worst performing ASX small cap stocks for July 22 :
Code Name Price % Change Volume Market Cap
NAE New Age Exploration 0.003 -25% 60,216 $10,823,646
PKO Peako Limited 0.002 -20% 4,801,244 $3,719,355
PRX Prodigy Gold NL 0.002 -20% 28,500 $15,875,278
QXR Qx Resources Limited 0.004 -20% 49,149 $6,551,644
RLG Roolife Group Ltd 0.004 -20% 3,485,000 $7,963,906
BEL Bentley Capital Ltd 0.009 -18% 5,658 $837,407
AMS Atomos 0.005 -17% 90,872 $7,290,111
SIS Simble Solutions 0.005 -17% 525,549 $6,493,982
STX Strike Energy Ltd 0.135 -16% 14,603,237 $458,834,578
BLU Blue Energy Limited 0.006 -14% 1,053,411 $12,956,815
BYH Bryah Resources Ltd 0.006 -14% 7,103,753 $6,789,675
LML Lincoln Minerals 0.006 -14% 6,850,020 $14,717,988
SPX Spenda Limited 0.006 -14% 125,000 $32,306,508
CMO Cosmometalslimited 0.019 -14% 200,000 $7,086,984
FAL Falconmetalsltd 0.615 -13% 1,714,011 $125,670,000
SFM Santa Fe Minerals 0.300 -13% 37,034 $25,122,482
HAL Halo Technologies 0.027 -13% 43,599 $3,987,728
ATS Australis Oil & Gas 0.007 -13% 110,000 $10,544,500
GTR Gti Energy Ltd 0.004 -13% 8,832,499 $14,835,762
LU7 Lithium Universe Ltd 0.007 -13% 4,524,839 $7,487,837
LMS Litchfield Minerals 0.110 -12% 14,551 $3,630,757
LOC Locatetechnologies 0.115 -12% 1,151,106 $30,572,664
BUX Buxton Resources Ltd 0.039 -11% 2,111,227 $15,060,428
IN CASE YOU MISSED IT
Kingsland Minerals (ASX:KNG) is wrapping up early-stage studies at Leliyn graphite project in the NT, where it intends to build a mine and processing plant.
Core Energy Minerals (ASX:CR3) has started aircore drilling at its Cummins uranium project in South Australia.
West Coast Silver's (ASX:WCE) latest rock chip and float sampling program has identified high grade silver and elevated copper and gold.
Cannindah Resources (ASX:CAE) has identified the potential to substantially increase the amount of copper at its Mt Cannindah project.
LAST ORDERS
ClearVue (ASX:CVP) has enlisted advisory firm Kidder Williams to review its structure and strategic growth options. The company will assess narrowing the focus of sales and marketing to the Asia Pacific market, identifying and securing qualified distributors in other markets, and optimal capital structure.
Buxton Resources (ASX:BUX) has drilled down to 404 metres of depth at the Centurion project, but was unable to complete the first hole due to ground conditions. A second hole is underway, the program has been delayed to mid-August, and the drilling contractor has taken responsibility for the costs of the abandoned hole.
Future Battery Minerals (ASX:FBM) has wrapped up a 21-hole, 1900m drilling program at the Miriam project, targeting gold at the Forrest and Canyon prospects. Results from the program won't be available until early September, after which FBM will follow up with a second phase of drilling ahead of a mineral resource estimate.
At Stockhead, we tell it like it is. While ClearVue, Buxton Resources and Future Battery Minerals are Stockhead advertisers, they did not sponsor this article.
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ABC News
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SBS Australia
20 minutes ago
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Are Australians at risk from lifting the restrictions on US beef imports?
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ABC News
20 minutes ago
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More than a million unemployed Australians job ready as 'deeply concerning' data released
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