Closing Bell: Not so complex now as investors massively dump commodities

  • Small Caps, ASX 200 Slips on Commodities Selling
  • Energy, Resources, Materials all down ~5% from tuning gains for IT et al
  • BNPL names are back in the green

This is a difficult trade to monitor. Two-tier investing at its best.

Sentiment has deteriorated on both the benchmark ASX 200 and the Emerging Companies Index (XEC) as the sell-off engulfs all corners of the commodity complex.

Both indexes were inert and unable to break the surface, despite a blistering day for tech names and some consumer stocks.

But those windfall gains could not offset losses in the traditional mining, materials and energy sectors due to growing fears of recession and general calamity.

This triggered a drop in oil prices and the energy sector in general. Biggies Woodside Energy (ASX:WDS) is down more than 5%, Santos (ASX:STO) around 4%.

Metals led by copper cop out and gold no scrub have withered, despite some very large updates which are also turning heads.

THE BIGGEST SMALL CAP WINNERS TODAY

(Stocks highlighted in yellow rose after making announcements during the trading day).

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I like to ignore really bad news, so let’s talk tech, baby.

The sleepy Kraken in the IT sector rolled its way on Wednesday, finding around 3.5% on the back of good money for biggies Megaport 13.5% and Xero which is up around 6%.

But thanks in large part to Eddy ‘Work Now Play Later’ Sunarto’s articulate and timely analysis, the folks at BNPL have done quite well.

Sezzle (ASX:SZL)is a tech stock on the grill, salty with a seasonal 35% as a result of an upgrade from UBS for the entire BNPL sector earlier this week.

And so, swimming upstream, so to speak, Zip Co (ASX:ZIP) is behaving like a well-fed, highly motivated salmon with a bladder full of BNPL babies – up nearly 16%, and hot on the heels of 85 other % is lost since the beginning of the year.

It is also zipperThis week’s 9th anniversary, which means that Australia (the upstream cradle of the whole BNPL affair) has lived almost a decade in a BNPL world. We are also the only market where zipper makes a decent profit.

And IOUpay (ASX:IOU) added to its recent gains by jumping another roughly 20%.

Irish friendly Limited EML Payments (ASX:EML) is also on the rise. Its partner and key European customer, Correos – the Spanish national postal network – is ready to launch a collaboration to support the issuance of the Bono Cultural Joven 2022 (Youth Cultural Bonus) tender for the Spanish government.

The program will see around 500,000 virtual prepaid cards loaded with €400 each and distributed to eligible 18-year-olds (in Spain), to support the cultural sector which has been hit hard by COVID – a noble cause which, thanks to the Lord, has absolutely nothing to do with the U2 singer, who is very likely to show up anyway because someone has probably said his name three times in a mirror somewhere.

Elsewhere, road toll tech guys Eroad (ASX:ERD) also set foot on the ground this morning, rolling on the finance superhighways to grab another 17.4% of street credit after its corporate governance roadshow last week blazed some trails for the company to change gears, change lanes to find other paths to success.

THE BIGGEST SMALL CAP LOSERS TODAY

(Stocks highlighted in yellow rose after making announcements during the trading day).

Scroll or swipe to view the table. Click on the headers to sort.

Southern Cross Gold (ASX:SXG) really deserves to be at the top of the list. Explorer lost more than a quarter of its value after reporting high quality near surface impacts as well as lateral extensions of the Apollo structure at Sunday Creek.

SXG told the market that the high-quality hits housed in veins truly demonstrate the horizontal, straight-forward continuity of what SXG considers high-diving filming. Down 26%.

WHAT YOU MAY HAVE MISSED AMID THE CARNAGE AND CONFUSION

Sounds like the last season of Who Wants to Own a Casino? heats up, after current Canberra casino owner Aquis Entertainment (ASX: AQS) launched a few announcements during the day. Aquis was originally to sell the casino to Capital Leisure & Entertainment Pty Ltd, which is owned and controlled by interests associated with the Oscars Group, for $52 million.

Aquis then got a better offer from a third that was “materially higher” than $52m, and returned to the Oscars to see if he had an answer, which he did – seeing that offer and increasing the price at $58.2 million with a $1 million break fee attached if Aquis left with another buyer.

And then later that afternoon, Iris CC Holdings (Iris Capital) – our mystery third party – returned an offer of $60 million, with a similar break fee structured. It’s unclear which direction Aquis will jump in yet, but with its voluntary suspension actions, there’s plenty of time for both offers to be considered before they go all-in.

Meanwhile, Mayur Resources Limited (ASX:MRL) has signed a binding off-take agreement (agreement) with Qingdao Shinebest titanium pellet producer (Shinebest) for the sale of vanadium titano-magnetite (magnetite) product (product) of the iron and industrial sands project of Orokolo Bay (Orokolo Bay or the project).

The agreement covers 300,000 tonnes per year for a period of 3 years, with an option to extend for an additional year, at market-related prices, replacing the existing agreement between the two companies.

Always among the diggers, Value (ASX:VAL) unveiled a series of highly prospective targets to track during the review, which was conducted to better understand the multi-product potential of the project.

Of particular note is the drilling at the Surprise Creek Fault uranium target, which was highlighted by a 2.1m intercept at 4.37% uranium oxide from 57m, including 0.9 m at 7.5% uranium oxide.

Other significant historical drill results for uranium included 1.5m at 0.1% uranium oxide, 0.43m at 0.49% and 0.15m at 0.83%.

The company said drilling at Surprise Creek Fault – a target comprising a geochemical uranium anomaly in soils more than 500m in length – only partially tested the area and remained open in several directions.

Rock chip samples from the area tested contained up to 6.37% uranium oxide, associated with a north-northwest faulting system.

TRADING STOPS

CFOAM Limited (ASX:CFO) – On hold as the business is busy being blown onto beaches on the east coast of Australia. (Just kidding – there’s news about a corporate trade and an ASX price request).

Lumos Diagnostics Holdings Limited (ASX:LDX) – Announcement of a pending regulatory update.

Kyckr Limited (ASX:KYK) – Answered a general question on how to say the business name (“It’s Kicker. KYCKR, Kicker”), plus there is a business transaction looming.

Pancontinental Energy NL (ASX: PCL) – Capital raising.

Estrella Resources Limited (ASX:ESR) – Capital raising.

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