- Benchmark ASX200 index closed sharply lower on Tuesday, losing 1.53% to 7,095.70.
- S&P/ASX300 fell 1.53% to 7,078.30. S&P/ASX 200 Materials [XMJ] closed 0.19% lower at 18,064.50 on Tuesday.
- The Reserve Bank of Australia has raised official cash rate to 0.85%.
The Australian market started the week on a negative note. On Tuesday, the benchmark ASX200 index fell upto 1.53% or 110.60 points to 7,095.70 and crossing below its 20-day moving average.
Similarly, S&P/ASX300 Metals & Mining index continued their decline from the Monday session. The S&P/ASX 200 Materials index closed 0.19% lower today.
Negative sentiments prevailed in the overall market due to the Reserve Bank of Australia’s meeting. Today, RBA board today decided to hike the cash rate by 50 basis points to 0.85% in a surprising move as controlling inflation becomes top priority for the central bank.
Well, on that note, let us look at the three penny stocks that trended on the ASX today.
Dateline Resources Limited (ASX:DTR)
It is an Australian publicly listed company focused on gold mining and exploration in North America.
The stock closed 34.090% up at AU$0.147 on Tuesday.
Dateline Resources has requested the ASX for an immediate halt on trading in its securities.
The company requested an immediate 2-trading day halt to allow the necessary time to work on its proposed capital raising. Dateline Resources also informed that, unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Thursday, 9 June 2022 or when the announcement is released to the market.
Dateline Resources shares have gained 83.75% on a year-to-date basis. The company stands with a market capitalisation of AU$48.73 million as of 7 June 2022.
Cannon Resources Limited (ASX:CNR)
It is a Western Australia nickel exploration and development company focused on its flagship Fisher East Nickel Project and Collurabbie Nickel Project.
Cannon Resources today announced that recent diamond drilling at its flagship Fisher East Nickel Project had intersected substantial zones of massive nickel sulphide at Sabre deposit. This project is located in Western Australia.
Cannon Resources shares closed 14.285% at AU$0.400 per share on Tuesday. The stock has shed off 18.37% on a year-to-date basis. The company stands with a market capitalisation of AU$29.91 million as of today.
R3D Resources Limited (ASX:R3D)
This one is a significant copper-gold explorer and developer in the Chillagoe Region in Far North Queensland. The company announced that the Tasmanian Environment Protection Authority has allowed them to progress Stage 2 application to the advertising stage.
The Stage 2 application involves the potential granting of a permit to access the Northern Zinc Slag stockpile and to crush material from both the Northern and Southern stockpiles.
R3D Resources shares gained 23.809% to end today’s session at AU$0.130 apiece. The shares have declined 13.33% on year-to-date basis. The company has a market capitalisation of AU$13.57 million as of today.
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.