- The ASX Small Ordinaries index (ASX:XSO) was trading 0.07% lower at 3,094, as of noon.
- AUQ, IEC and DLT are some of the ASX penny stocks that cheered investors in today’s session.
- Investors must keep their position size in check and do proper due diligence before investing in penny stocks.
After four days of continuous selling, the Australian market seems to be getting stable. Although the benchmark ASX 200 index has lost majority of the gains from the opening rally, it is still up 0.22% to 6,853.6, as of noon.
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The small cap index has evaporated all the morning gains and is now trading negative for the day. The ASX Small Ordinaries index (ASX:XSO) was trading 0.07% lower at 3,094, as of noon. However, some penny stocks are refusing to lose their gains amid strong investors’ demand. Let us have a look at three such ASX penny stocks.
- Alara Resources Limited (ASX:AUQ)
Alara Resources is an Australia-base mining and exploration company, having a market capitalisation of AU$30.33 million. AUQ shares have been on the rise since Thursday, after the company announced it had completed another key component of the construction phase of the Wash-hi Majaza Copper-Gold Project.
On Thursday, AUQ shares rallied 53.57%, while today, the stock has gained another 27.91% to the last traded price of AU$0.55, as of noon. The volume for the day so far has been the highest this year, at over 6.5 million shares, while the monthly volume has surpassed 22.6 million shares, highest since March 2019.
- Intra Energy Corporation Limited (ASX:IEC)
Intra Energy Corporation is a diversified mining and energy group with two subsidiaries - Intrafrican Resources and Tancoal Energy. The group’s prime focus is on developing and producing thermal coal in Eastern Africa. The market capitalisation of Intra energy is AU$6.83 million.
The IEC share price surged 33.33% to the day’s high of AU$0.2, by noon, backed by a volume of 595K shares. The company attracted investors’ demand after it announced a binding agreement with Century Minerals, under which the latter agreed to transfer a 70% undivided share in the Tenement to IEC (after the completion of a few considerations).
- Delta Drone International Limited (ASX:DLT)
Delta Drone International is a global player in designing drone technologies for professional use. The company designs drone technologies for a wide range of commercial use such as for entertainment, security, mining industry, etc. Delta Drone has a market capitalisation of AU$9.72 million.
Today, the company announced an agreement to sell it drone safety business ParaZero Technologies Ltd to a consortium of investors led by Medigus Ltd. The company would be raking in AU$6 million against the sale of its business. Boyed by the deal, DLT shares surged 21.05% to AU$0.023 by noon, retracing a bit from the day’s high of AU$0.026.
Penny stocks tend to exhibit wild movements based on some key fundamental developments, heightening the chances of both - potential risks and profits. Therefore, investors must keep their position size in check and do proper due diligence before investing in penny stocks.