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Highlights
- The ASX Small Ordinaries index plunged 1.03% to 3,346, by 12:30 PM AEST.
- TMK, BRX and AD1 are going against the grain with their massive rallies in a gloomy market.
- Investors must do a proper due diligence before investing in these stocks.
After quite a few sessions, the Australian market on Wednesday is witnessing some serious selling. In opening trade, the benchmark ASX 200 index was down more than 1% and trading 0.83% lower at 7,465, as of 12:30 PM AEST. The negative closing in the US session was the primary reason for today’s selling.
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Small caps are also down for the day as investors’ risk appetite has taken a back seat, with the ASX Small Ordinaries index plunging 1.03% to 3,346, by 12:30 PM AEST. However, a few ASX penny stocks are buzzing today and have rallied massively, defying market gloom. Let us have a look at three such stocks.
Read More: SYA, GED & PUR: 3 ASX penny stocks that started the week on a positive note
- TMK Energy Limited (ASX:TMK)
TMK Energy is an ASX-listed oil and gas exploration company, having a market capitalisation of AU$37.44 million. In FY21, the company clocked a net loss of AU$574.1K over a revenue of AU$1.07K, however the loss was significantly less than AU$1.09 million loss incurred in FY20.
Today, TMK shares rallied 30.77% to the last traded price of AU$0.017 by 12:30 PM AEST. Although, there hasn’t been any formal communication by the management today, but today’s massive volume of 29.07 million shares makes it a worthy candidate to put on the watchlist for the next few sessions.
- Belararox Limited (ASX:BRX)
Belararox is a new listing on the ASX, marking its debut on 28 January 2022. The company is an Australian mining and exploration firm, primarily focused on resources to meet the growing demand of battery and renewable energy sectors. The company has a market capitalisation of AU$33.4 million and it clocked a net loss of AU$120.6K in FY21.
Today, BRX shares opened lower at AU$ 0.635, but surged sharply to the day’s high of AU$1 and is currently trading at AU$0.92, having gained 29.58%, by 12:30 PM AEST. The volume for the day was recorded at over 615K shares.
- AD1 Holdings Limited (ASX:AD1)
The last stock on our list is AD1, which is a technology company and is focused on creating and investing in market-leading software businesses. The company has a market capitalisation of AU$10.8 million and has been consistently clocking higher revenues for the last few years – from AU$1.95 million in FY19 to AU$3.4 million in FY20 to AU$5.34 million last year.
Today, AD1 shares have surged 12.5% to the last traded price of AU$0.018 by 12:30 PM AEDT, recovering from most of the losses from previous session which recorded an 11.11% fall. Today’s volume is mediocre, at over 797.8k shares so far.
Bottom Line
Due to poor liquidity, penny stocks can move significantly higher or lower on any event such as an earnings announcement. Therefore, before investing in these stocks, investors must do a proper due diligence.
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