- The ASX Small Ordinaries index (ASX:XSO) has taken a hit of 0.6% to 3,427.
- The tech sell-off in the US has been a primary driver for today’s bearish sentiments.
- CXO, RNU and AVZ are some of the penny stocks resisting today’s broader market fall and trading in green.
The Australian market seems to be in choppy waters on the last day of the week. The benchmark ASX 200 index has fallen 0.93% or 69.5 points to 7,406, as of 8:40 AM AEDT, 14 January 2022. The tech sell-off in the US has been a primary driver for today’s bearish sentiments.
Image Source: © 2022 Kalkine Media®
The small cap space is also bearing the brunt of weak sentiments. The ASX Small Ordinaries index (ASX:XSO) has taken a hit of 0.6% to 3,427, despite which a few penny stocks are going against the grain and trading in the green. Let us have a look at three such ASX-listed penny stocks.
- Core Lithium Limited (ASX:CXO)
Core Lithium is an ASX-listed exploration company having an interest in diversified metal projects, especially in the production of lithium. The company is developing one of Australia’s most low-cost and capital-efficient spodumene lithium projects -- the Finniss Lithium Project.
CXO shares have been on a golden run since last few days, delivering a lucrative 40.16% return in the last five trading sessions alone, last traded at AU$0.9 at 8:40 AM AEDT, 14 January 2022. Today alone the stock is up 11.8%. The company’s market capitalisation has also ballooned to AU$1.34 billion.
- AVZ Minerals Limited (ASX:AVZ)
Another explorer on the list, AVZ Minerals focuses primarily on lithium production.
The company is developing the Manono Project in central Africa, which is one of the world’s largest lithium, caesium and tantalum rich pegmatite deposits.
AVZ shares have had a smooth rally in the one month, delivering a return of 29.86% to the last traded price of AU$0.94, including 2.17% gain in today’s session. The company has a market capitalisation of AU$3.16 billion. In FY21, the company declared a net loss of AU$5.4 million, compared to a loss of AU$5.13 million in FY20.
- Renascor Resources Limited (ASX:RNU)
Being a clean energy player, Renascor Resources is interested in ethically sourcing Purified Spherical Graphite from Australia for green battery anode material. The company has been reducing its losses consecutively for the last four years, with the last year’s loss of AU$0.88 million, compared to a net loss of AU$1.07 million in FY20.
RNU shares are up 4.25% to AU$0.245 in today’s session. The shares have rallied over a sizable 88.46% in the last one month. On Thursday, the stock marked its multi-year high of AU$0.26 and now the company has risen to a market capitalisation of AU$444.2 million.
Although, these penny stocks might seem to be easy money, given their decent gains even in a falling market. However, investing in them is not risk free, and investors must do their own due diligence before investing.