Three ASX penny shares turning heads today

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Highlights

  • The ASX Small Ordinaries index (ASX:XSO) has fallen 1.46% to 3.260.1, as of 1:00 PM AEDT on 24 January 2022.
  • GSR, RFR and RXL are some ASX penny stocks that are delivering a double-digit gain.
  • Doing proper due diligence before investing in these small caps is highly recommended.

On Monday, the Australian market continued to slump, tracking negative closing on Wall Street last week. The small caps space is one of the weakest pockets in today’s session with the ASX Small Ordinaries index (ASX:XSO) tumbling 1.46% to 3.260.1, as of 1:00 PM AEDT.

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The small cap index has marked a low of 3,238.1, the lowest level since May last year. With some ASX penny stocks cracking over 50% in today’s session, a few are also going against the grain and turning heads with their healthy gains. Let us have a look as three such shares.

Read More: ASX 200 falls at open: Regis Resources nosedives over lower FY22 guidance

  1. Greenstone Resources Limited (ASX:GSR)

Founded in 2013, Greenstone Resources is a metals and mining company, specialising in the exploration and development gold projects. The company also holds a 505 stake in one of Australia’s most advanced cobalt-nickel projects.  

GSR shares have been put under a trading halt as the company is to make an announcement. Before going under a trading hat, the shares had rallied 17.24% to the last traded price of AU$0.034. The volume for the day had also surpassed 6-million mark, the highest one-day volume in the last few months.

  1. Rafaella Resources Limited (ASX:RFR)

Rafaella Resources is a global mineral exploration and development company having focus on mineral deposits important for the technologically driven world. The company has a market capitalisation of AU$14.11 million and the company reduced its loss in FY21 to AU$1.99 million, compared to a net loss of AU$2.38 million in FY20.

RFR shares have been steadily increasing since mid-December 2021 and today the stock jumped over 14.86% to the highest level for the day of AU$0.085, as of 1:00 PM AEDT. The volume for the day so far has been 1.17 million shares, almost twice the 20-day average of ~572K shares.

  1. Rox Resources Limited (ASX:RXL)

The third stock on our list is also from the mining sector, Rox Resources. It is an ASX-listed gold exploration company working on Mt Fisher Gold Project and a 70% owned, the historic Youanmi Gold Project. The market capitalisation of the company is AU$77.22 million.

The RXL share price has been on the run since 20 January 2022, when the company announced that the drilling and exploration work at the Youanmi Gold Project has yielded substantial increases in known and defined tonnages and ounces. On the same day, the stock rallied 40.28%, and today it is up 16.33% to AU$0.57, as of 1:00 PM AEDT.

Bottom Line

Investing or trading in penny stocks is relatively riskier than investing in its larger peers. As these windfall profits might seem lucrative to some investors, they should not forget the possibility of a huge dent to capital is also there. Therefore, doing proper due diligence before investing in these small caps is highly recommended.

Read more: Here’s how to pick fundamentally strong stocks


 


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