- The Australian market opened with a deep cut of around 1.5%, spooked by US Fed Chair’s comments on aggressive interest rate hikes.
- LRV, AW1 and WIN shares have been going against the grain in today’s weak market.
- Investing in penny stocks is a risky venture as these stocks are relatively highly volatile.
The Australian market is trading on a weak note today, spooked by US Fed Chair Jerome Powell’s comments on “taming inflation” and a possible 50 basis points’ hike on the table. The US market closed in the red yesterday, while the Australian market opened today with a deep cut of around 1.5%.
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Small caps are also witnessing some selling today with investors’ risk appetite taking a back seat over rate hike worries. The ASX Small Ordinaries index (ASX:XSO) plunged 1.73% to 3,334.7 by 12:30 PM AEST today. However, as usual, some ASX penny stocks have managed to attract investors’ attention with their massive gains despite a weak market. Let us have a look at three such stocks.
- Larvotto Resources Limited (ASX:LRV)
The first stock on our list is a AU$19.5 million Western Australia-headquartered ASX miner, Larvotto Resources. The company focuses on multiple in-demand commodities such as gold, copper, cobalt, etc. The LRV share price jumped 14.2% to a new all-time high in today’s session to the last traded price of AU$0.4.
The stock has been continuously making new highs for the last few days and has also received an ASX price query seeking a justification for the price rise.
- American West Metals Limited (ASX:AW1)
Founded in 2020, American West Metals is a mining company with a market capitalisation of AU$33.04 million. It is a relatively new listing on the ASX, having made its debut on 13 December last year at AU$0.145.
Today, AW1 shares have rallied to a new all-time high of AU$0.265, currently trading at AU$0.25, gaining 21.95% by 12:30 PM AEST. Since its listing, the stock has delivered a massive return of 72.4%. The volume for the day is also on a higher side, at over 1.35 million shares.
- Widgie Nickel Limited (ASX:WIN)
The last stock on our list is a Perth-based Australian miner with a unique consolidation of a 240km2 package of highly prospective nickel and other metals. The company has a market capitalisation of AU$108.8 million and its share price has surged over 10.34% to the last traded price of 0.48 by 12:30 PM AEST.
However, there has not been any announcement by the company today. The stock has delivered a high return of over 92% this year, primarily due to a surge in nickel prices which caught the attention of investors.
Investing in penny stocks is a risky venture as these stocks are relatively highly volatile and often move erratically in case of a fundamental development. Therefore, before investing in them, investors must do a proper due diligence.