Three ASX penny shares defying market gloom today

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Three ASX penny shares defying market gloom today

 Three ASX penny shares defying market gloom today
Image source: Kris Patrick, Shutterstock.com

Highlights

  • The ASX Small Ordinaries index has taken a hit of 0.72% to 3,423 in today’s session, as of 1:00 PM AEDT.
  • FGL, CLA and CMX are some of the penny stocks that are defying the market fall today.
  • Investing in penny stock is risky and investors must maintain high caution while doing so.

The Australian market opened on a weaker note on Wednesday, following cues from the Wall Street indices. Earnings disappointment from Goldman Sachs, US treasury yields hitting a two-year-high and a tech-heavy sell off were the major contributing factors for a fall in the US markets.

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Not so surprisingly, the small cap index, ASX Small Ordinaries index (ASX:XSO) has also taken a hit of 0.72% to 3,423 in today’s session, as of  1:00 PM AEDT. However, a few penny stocks are going against the grain in this bearish market and providing investors a comfort zone. Let us have a look at three of these ASX penny stocks.

Read More: ASX 200 opens in red; Megaport falls over 11%

  1. Frugl Group Limited (ASX:FGL)

Frugl Group is the smallest company in the list with a market capitalisation of a mere AU$3.6 million. Frugl is a software technology-based business, providing retail intelligence ecosystem from its two independent platforms – InFocus Analytics and Frugl Grocery.

The FGL share price has rallied 30% today to the last traded price of AU$0.026, as of 1:00 PM AEDT. At the day’s high of AU$0.031, the stock was up by a massive 55%. The volume for the day so far has also surged to over 2.3 million shares, significantly higher than 20-day average of 400K shares.

  1. Celsius Resources Limited (ASX:CLA)

Celsius Resources is an ASX-listed Australian miner, having a focused portfolio of copper-gold assets in Philippines. The company has a market capitalisation of AU$28.45 million. It reported a net loss of AU$1.2 million in FY21, compared to a loss of AU$0.66 million a year ago.

CLA shares have been rallying since the last week of December 2021 and are currently up 55% so far this year, including today’s gain of 14.81% to the last traded price of AU$0.031, as at 1:00 PM AEDT. The recent decision of the management to appoint highly accomplished stockbroker Jonathan Colvile as a non-executive director of the company, also contributed to the stock’s rally.

  1. ChemX Materials Limited (ASX:CMX)

ChemX Materials is a new listing on the Australian bourse, having marked its debut on 18 January 2022. It is a speciality chemicals manufacturing business with more than 24K clients worldwide. The company has a market capitalisation of AU$18.15 million.

Although, on Tuesday, the stock tanked 12.5% from its listing price, today it pared all the losses and surged over 20% to the current price of AU$0.24, as of 1:00 PM AEDT. The high of the day is AU$0.265, and the volume so far has been reported at over 2.3 million shares.    

Bottom Line

These gains might give an impression of investing in penny stocks being an easy decision. However, penny stocks are one of the riskiest spaces (if not the riskiest) in the stock market and one wrong stock is enough to erode a huge chunk of capital. Therefore, investors must maintain high caution while investing in penny stocks.

Read More: Three small cap ASX consumer stocks to put on watchlist for 2022

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