Small caps have edged higher to finish the week in the green, finally breaking their four-week losing streak.
The Small Ordinaries index closed up 10.2 points, or 0.32 per cent, to 3,197.5, slightly outperforming the All Ordinaries which gained 0.18 per cent.
The index of Australia’s 101st to 300th biggest companies finished the week up 0.55 per cent following gains every day this week except Wednesday. It was the index’s first winning week since April 12-16.
Sectors were mixed on Friday, with energy falling 2.0 per cent and materials down 1.1 per cent. But consumer staples, health care and tech were all up strongly, by between 1.6 and 1.8 per cent.
Kogan.com (ASX:KGN) plunged 14.3 per cent to $8.70 after the e-commerce retailer issued an earnings downgrade, saying its rapid growth during the pandemic had caused problems. It had invested in excess inventory that caused significant supply chain inefficiencies and storage costs, Kogan said.
Fellow e-commerce retailer Temple & Webster (ASX:TPW) dipped 4.0 per cent to $9.18.
Small cap news
Airtasker (ASX:ART) was in a trading halt after announcing plans for a $20.7 million capital raising, just three months after making its ASX debut. The company plans to use the funds for expansion in the United States and has purchased Zaarly, a curated local services marketplace with operations in Dallas and Kansas City, for $3.4 million. The Zaarly platform had proven unable to scale and the team had plans to shut it down. Airtasker plans to transform it from a curated marketplace to an open one.
Classic Minerals (ASX:CLZ) gained 100 per cent to 0.2c after the junior explorer announced it had completed drilling at its Kat Gap gold project. Classic is on track to achieve first pour by the end of August.
Fixed wireless company Swoop Holdings announced it had completed its reverse takeover of STEMify (ASX:SF1), a shell company that formerly sold STEM education curriculum using 3D printing. The takeover will be effective with the ASX as of Wednesday, with the company’s stock code changing to SWP.
Mining contractor Perenti Global (ASX:PRN) announced one of its employees is missing after a fall of ground at AngloGold Ashanti’s Obuasi Gold mine in Ghana. The contractor was an employee of Underground Mining Alliance, a joint venture owned by a subsidiary of Perenti and a local company. Perenti shares finished down five per cent to 66.5c.
Australian Bauxite (ASX:ABX) – capital raising
Zeotech (ASX:ZEO) – capital raising
Australian Potash (ASX:APC) – capital raising
Lucapa Diamond Company (ASX:LOM) – acquisition and capital raising
Dynamic Drill & Blast (ASX:DDB) – capital raising
Jayex Healthcare (ASX:JHL) – capital raising
Mayur Resources (ASX:MRL) – capital raising
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Barry Stroman was a reporter for Zerg Watch, before becoming the lead editor. Barry has previously worked for Wired, MacWorld, PCWorld, and VentureBeat covering countless stories concerning all things related to tech and science. Barry studied at NYU.