Closing Bell: ASX dodges negative sentiment to climb 0.3pc as gold stocks rally

The ASX closed up 0.3pc on Friday, driven by a 1.9pc surge in gold stocks. Retail sales softened, raising the likelihood of an RBA rate cut.

The ASX managed to achieve a delicate balancing act, finishing in the green despite some wobbles earlier today. Pic: Getty Images

• ASX climbs 0.3pc

• Gold stocks surge, up almost 2pc

• Retail sales soften, increasing chance of RBA rate cut

The Australian share market worked hard for its gains today, seesawing between negative and positive territory before making a convincing recovery after about 2pm AEST to climb 0.3%.

Seven of our 11 sectors ended up crossing over into the green during all that back and forth, with the defensive stock sector Utilities leading the way.

Source: Market Index

While Materials and Financials are sitting fairly middle-of-the-pack at market close, particular sub-sectors outperformed their brethren, making outsized moves on the ASX.

Source: Market Index

Gold stocks left their Materials cousins in the dust, climbing 1.9% as an index while the ASX 200 Resources added only 0.01%.

Ora Banda (ASX:OBM) shot up 7.51%, West African Resources (ASX:WAF) added 5.6%, Bellevue Gold (ASX:BGL) 4.21% and Resolute Mining (ASX:RSG) 3.28%.

The banks also outperformed other financial stocks, although as big cap stocks the movements were a little less energetic.

Westpac (ASX:WBC) jumped 2.68%, NAB (ASX:NAB) 1.33% and Commonwealth Bank (ASX:CBA) managed a positive showing of 0.87% despite some (now resolved) internet banking disruptions for its customers today.

All in all, the bourse made a fairly good showing considering the reinstatement of Trump’s tariffs by a US Court of Appeals overnight and disappointing Aussie retail data for April.

Retail sales soften in April

The ABS released its retail turnover numbers for the month of April today, which contracted by 0.1% despite lifting by 0.3% in March.

“Retail spending eased in April, particularly on clothing purchases,” ABS head of business statistics Robert Ewing said.

“Clothing retailers told us that the warmer-than-usual weather for an April month saw people holding off on buying clothing items, especially new winter season stock.”

Oxford Economics lead economist Benjamin Udy said Australian consumers are wary of macroeconomic headwinds.

“Today's data shows Queenslanders returned to the shops in April, but that rebound was offset by weaker sales across all other states,” Udy said.

"The weakness outside of Queensland may be related to the stalling in the recovery consumer sentiment due to rising global trade uncertainty.

“Unless consumption picks up a little more strongly in the coming months, the RBA may cut rates even sooner than we currently expect.”

Yesterday, markets were pricing a 59% chance that the RBA would cut the cash rate to 3.6% at its next meeting.

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

Security	Name	Last	% Change	Volume	Market Cap
PRM	Prominence Energy	0.004	100%	114700	$778,353
ERL	Empire Resources	0.005	67%	554786	$4,451,740
ASP	Aspermont Limited	0.008	60%	2432297	$12,365,938
1AD	Adalta Limited	0.003	50%	112186	$1,286,446
ASR	Asra Minerals Ltd	0.003	50%	7479385	$5,533,072
CR9	Corellares	0.003	50%	412320	$2,011,213
LOC	Locatetechnologies	0.1	43%	724138	$14,083,568
TAS	Tasman Resources Ltd	0.025	39%	558543	$3,314,567
CZN	Corazon Ltd	0.002	33%	700000	$1,776,858
GMN	Gold Mountain Ltd	0.002	33%	296327	$8,429,639
AYT	Austin Metals Ltd	0.005	25%	198136	$6,296,765
BYH	Bryah Resources Ltd	0.005	25%	818236	$3,479,814
EAT	Entertainment	0.005	25%	23175	$5,235,144
MQR	Marquee Resource Ltd	0.01	25%	1874067	$4,466,420
PRX	Prodigy Gold NL	0.0025	25%	1000000	$6,350,111
RGL	Riversgold	0.005	25%	228348	$6,734,850
RLG	Roolife Group Ltd	0.005	25%	7657763	$6,371,125
RNX	Renegade Exploration	0.0025	25%	750000	$2,576,727
VRC	Volt Resources Ltd	0.005	25%	2214605	$18,739,112
WBE	Whitebark Energy	0.005	25%	100006	$2,749,334
NHE	Nobleheliumlimited	0.011	22%	787895	$5,395,725
RML	Resolution Minerals	0.017	21%	8629662	$7,361,016
LKY	Locksleyresources	0.08	21%	44328092	$9,680,000
OLL	Openlearning	0.018	20%	145461	$7,240,120
AZL	Arizona Lithium Ltd	0.006	20%	10117519	$26,351,572

Making news…

Mining media company Aspermont (ASX:ASP) has clocked up its 35th straight quarter of subscription growth, with subs now making up 75% of total revenue. Recurring subscription revenue hit $11.2 million, up 4% year-on-year, while overall group revenue dipped 6% to $6.7 million. EBITDA was negative, but the company is still debt-free and sitting on $700k in cash.

Renegade Exploration (ASX:RNX) has acquired four new gold-silver and base metal projects in the Nevada Walker Lane trend, in the US state of Nevada. With gold prices still hovering around US$3,300 an ounce, the company snapped up the licences for just US$150k, in an area responsible for 70% of domestic gold production in the US.

ASX SMALL CAP LAGGARDS

Today’s worst performing small cap stocks:

Security	Name	Last	% Change	Volume	Market Cap
BLZ	Blaze Minerals Ltd	0.002	-33%	142857	$4,700,843
ICU	Investor Centre Ltd	0.002	-33%	1056	$913,534
KPO	Kalina Power Limited	0.004	-33%	2520373	$17,597,818
MSG	Mcs Services Limited	0.004	-33%	550000	$1,188,598
OEL	Otto Energy Limited	0.004	-33%	19939911	$28,770,059
AOA	Ausmon Resorces	0.0015	-25%	357633	$2,622,427
BMO	Bastion Minerals	0.0015	-25%	1000000	$1,807,255
OB1	Orbminco Limited	0.0015	-25%	13220340	$4,795,136
AVE	Avecho Biotech Ltd	0.004	-20%	1994020	$15,867,318
C7A	Clara Resources	0.004	-20%	145000	$2,558,021
WNX	Wellnex Life Ltd	0.31	-19%	115162	$26,092,038
MGA	Metalsgrovemining	0.066	-19%	150000	$8,539,020
PLC	Premier1 Lithium Ltd	0.009	-18%	1932229	$4,048,666
DBO	Diabloresources	0.014	-18%	265439	$2,296,970
BIT	Biotron Limited	0.0025	-17%	210802	$3,981,738
BP8	Bph Global Ltd	0.0025	-17%	392643	$3,152,954
DAF	Discovery Alaska Ltd	0.01	-17%	25000	$2,810,816
EE1	Earths Energy Ltd	0.005	-17%	100000	$3,179,785
JAV	Javelin Minerals Ltd	0.0025	-17%	2850000	$18,138,447
TEG	Triangle Energy Ltd	0.0025	-17%	500999	$6,267,702
CML	Connected Minerals	0.13	-16%	36159	$6,410,523
CDX	Cardiex Limited	0.042	-16%	616975	$20,303,194
T88	Taitonresources	0.08	-16%	12500	$7,073,451
TG1	Techgen Metals Ltd	0.023	-15%	1341405	$4,283,974
ADG	Adelong Gold Limited	0.006	-14%	70299873	$9,782,403

IN CASE YOU MISSED IT

Stockhead’s Tylah Tully looks at White Cliff Minerals’ (ASX:WCN) exploration at Danvers, where continuous, high-grade copper and silver mineralisation at surface has been confirmed.

Tylah also breaks down the latest from West Coast Silver (ASX:WCE),which has started drilling to test extensions of known high-grade mineralisation at its Elizabeth Hill project in Western Australia.

Trading halts

Nico Resources (ASX:NC1) – cap raise
Pacific Edge (ASX:PEB) – cap raise
Patrys (ASX:PAB) – operations update

At Stockhead, we tell it like it is. While White Cliff Minerals and West Coast Silver are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Closing Bell: ASX dodges negative sentiment to climb 0.3pc as gold stocks rally