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
Read More: Closing Bell: Microcaps bloodbath continues as US stock futures fall again