Here’s why these penny stocks trended on ASX 200 today - Kalkine Media

June 06, 2022 06:53 PM AEST | By Farzan Moharkan
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Highlights

  • Australian share market remained muted in today’s trade; at market close, ASX 200 fell 0.5%, or 32.5 points, to 7206.3.
  • Negative sentiments prevailed in the market ahead of RBA meeting on Tuesday.
  • Few ASX penny stocks showed some strength, as investors continue to assess them for their investing portfolios.

Australian market remained muted on Monday's trade. The benchmark ASX 200 (INDEXASX: XJO) traded 0.30% down in the afternoon. The benchmark ASX Small Ordinaries index was down 0.68%. At market close, ASX 200 was in the red zone, falling 0.5%, or 32.5 points, to 7206.3, weighed down by losses in the technology sector. Negative sentiments prevailed in the market ahead of the Reserve Bank of Australia meeting on Tuesday. 

However, if you are keen to know about few ASX penny stocks that showed some strength, here are three penny stocks with more than 40 million market cap that saw high gains today. 

  1. Po Valley Energy (ASX:PVE)- Long-time Italian focused gas player, PVE owns a portfolio of natural gas fields in northern Italy. The company is currently developing two of its fields, Selva and Teodorico, which are fully drilled and awaiting final permitting before production. It was listed on the Australian Stock Exchange on 14 December 2004. 

Notably, Italy’s Emilia Romagna Regional Council has approved INTESA, which is a local government production agreement, for the Podere Maiar gas field at Selva Malvezzi. This is a prerequisite for Italy’s Ecological Transition Ministry to grant a Final Production Concession at Podere Maiar project.

Po Valley Energy shares traded at A$0.04, up by 15.78%, with a market cap of A$40.62 million. 

  1. Encounter Resources (ASX: ENR)- It is one of Australia's leading mineral exploration companies listed on the ASX. Encounter Resources’ primary focus is discovering major copper dominant deposits in Australia. The company has partnered with leading mid-tier and major producers to advance its extensive project pipeline with more than A$25 million of project funding contributed by partners over the past decade.

Encounter Resources currently has farm-in agreements with world-leading clean energy metals companies to provide up to A$40 million in initial exploration funding. Last Friday, the company provided an update on exploration activities at the 100%-owned Sandover project in the Northern Territory. 

Encounter Resources shares traded at A$0.17, up by 29%. The market capitalisation stood at A$42.82 million.

Penny stocks

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  1. Resource Mining Corporation (ASX:RMI)- It is an independent Australian mineral resource company with a mission to create wealth from mineral commodities using innovative technical, marketing and financial skills.​ Last week, the company announced that it plans to begin a maiden drilling program at its Kabulwanyele nickel-cobalt project in Tanzania’s Mpanda District. Resource Mining shares traded at A$0.14, up by 11.5% today, with a market capitalisation of A$52.73 million.

Well, penny stocks often tempt highly speculative traders with the illusion of easy exponential growth, offering the chance to double, triple or quadruple their money. While there are multiple benefits, investing in penny stocks requires sufficient capital, high-risk appetite, and proper due diligence. In case of the absence of any of these three, investors could find themselves in deep financial trouble while investing in this high-risk space. 


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