Closing Bell: ASX clings to gains as initial trade talk optimism wears thin

The ASX crept up less than 0.10pc in trade on Monday, wary of a lack of substance in US-China trade talks. Strength in Energy kept the bourse afloat.

The ASX managed to hold onto gains by its fingertips, lifting just 0.08pc despite touching a new 20-day average earlier in the day. Pic: Getty Images

• ASX jumped 0.5pc just before midday but pared back to just 0.03pc

• US-China trade negotiation announcement due this evening

• Energy sector once again leads gains as Healthcare falls

While the first word out of the US-China trade negotiations has been a positive one, it’s also been empty of substance.

Both parties made a lot of noise about how optimistic they were on the progress already made, but neglected to detail any of that alleged development.

Still, investors seem pretty desperate for any sign things will improve – the US market futures are looking very optimistic, up between 1.09% and 1.96% for the three major indices.

A break in mounting hostilities between India and Pakistan might have something to do with that.

The two nuclear-capable nations are now in a ceasefire after exchanging blows on the Kashmir border over the last four days, offering some hope the conflict will not continue to escalate.

With something approaching calm settling over international relations – however briefly – oil has begun to climb and gold has started to sink.

Brent added 1.67%, climbing to $63.91 a barrel, while gold slipped 1.57% to US$3274.18 an ounce.

ASX holds onto gains… by the fingertips

The ASX jumped about 0.5% in the first hour of trading this morning, but wasn’t able to hold onto those gains, falling back to lift just 0.03%.

Investors were initially keen, lifting seven sectors higher, but have since re-evaluated.

Source: Market Index

In fact, the market was threatening to go negative in the last hour of trade, managing to cling to gains only through a strong showing from the Energy sector and strength in the ASX200 Resources and All Technology indices.

Source: Market Index

Perhaps tonight's announcement will offer a little more substance.

Onto today's leaders and laggards.

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

Security	Name	Last	% Change	Volume	Market Cap
EDE	Eden Inv Ltd	0.002	100%	1725001	$4,109,881
CZN	Corazon Ltd	0.003	50%	2828544	$2,369,145
QXR	Qx Resources Limited	0.005	43%	3839576	$4,586,151
MHC	Manhattan Corp Ltd	0.024	41%	44668632	$3,993,281
CUF	Cufe Ltd	0.008	33%	2964390	$8,079,449
DTM	Dart Mining NL	0.004	33%	8868350	$3,594,167
RGT	Argent Biopharma Ltd	0.15	30%	30458	$8,301,063
HCT	Holista CollTech Ltd	0.056	30%	1359267	$12,287,969
ANX	Anax Metals Ltd	0.009	29%	2551369	$6,179,653
BKT	Black Rock Mining	0.025	25%	9779497	$29,388,798
LCY	Legacy Iron Ore	0.01	25%	2293122	$78,096,341
TFL	Tasfoods Ltd	0.005	25%	715317	$1,748,382
TYX	Tyranna Res Ltd	0.005	25%	1157211	$13,151,701
SMM	Somerset Minerals	0.021	24%	25468332	$7,186,472
WMG	Western Mines	0.21	24%	859939	$15,360,068
PUA	Peak Minerals Ltd	0.016	23%	79418905	$36,495,177
VRX	VRX Silica Ltd	0.07	23%	5401812	$42,596,287
VRL	Verity Resources	0.027	23%	7442119	$5,438,421
BEL	Bentley Capital Ltd	0.011	22%	285826	$685,151
PHO	Phosco Ltd	0.066	22%	1007879	$23,669,359
BMR	Ballymore Resources	0.175	21%	818272	$25,625,935
EXR	Elixir Energy Ltd	0.03	20%	7738444	$34,990,553
MTC	Metalstech Ltd	0.15	20%	400157	$26,090,203
BPP	Babylon Pump & Power	0.006	20%	2000000	$12,497,745
EM2	Eagle Mountain	0.006	20%	527069	$5,675,186

Making news…

Manhattan Corp (ASX:MHC) said it was snapping up the Hook Lake project in Nunavut, Canada, home to the high-grade Turquetil Lake gold deposit and a bunch of other promising gold and VMS (volcanogenic massive sulphide) prospects.

The project hasn’t been touched since 1988, when a “foreign” estimate (not JORC-compliant) clocked in at 3.4 million tonnes grading 2.38g/t for around 285,000 ounces of gold. The project’s sitting in a prime spot in Nunavut’s Greenstone Belt, not far from Agnico Eagle’s massive Meladine mine.

Peak Minerals (ASX:PUA) reckons it’s discovered a rutile province in Cameroon, hitting natural titanium (rutile) mineralisation in all 12 holes drilled at the Minta rutile project and averaging 63.2% rutile in the discovery hole.

The company says the results from this first round of drilling are “exceptional”, grading up to 4m at 2.9% – and that’s without taking into account the presence of oversized rutile nuggets which could materially add to the overall grade of 304 pending drill assays.

Black Rock Mining (ASX:BKT) has signed two big agreements with Tanzania’s TANESCO for its Mahenge graphite project. Faru, its 84%-owned subsidiary, will build a new 220kV power line connecting Mahenge to hydro-powered electricity.

Faru will get back the construction costs from TANESCO over four years of mine production. On top of that, the Tanzanian Mining Commission has lifted a default notice on Mahenge’s licence, clearing the way for Black Rock to get things moving.

ASX SMALL CAP LAGGARDS

Today’s worse performing small cap stocks:

Security	Name	Last	% Change	Volume	Market Cap
LSR	Lodestar Minerals	0.009	-50%	21095361	$5,731,629
CP8	Canphosphateltd	0.016	-47%	50000	$9,202,816
SRH	Saferoads Holdings	0.11	-37%	293257	$7,648,446
PAB	Patrys Limited	0.002	-33%	2354606	$6,172,342
VML	Vital Metals Limited	0.002	-33%	30000	$17,685,201
VPR	Voltgroupltd	0.001	-33%	511548	$16,074,312
DY6	Dy6Metalsltd	0.099	-27%	2455652	$7,902,337
1AD	Adalta Limited	0.003	-25%	313019	$2,572,891
GGE	Grand Gulf Energy	0.003	-25%	32438765	$11,201,549
BYH	Bryah Resources Ltd	0.004	-20%	2436170	$4,349,768
JAV	Javelin Minerals Ltd	0.002	-20%	31642241	$15,115,373
MRD	Mount Ridley Mines	0.002	-20%	1038245	$1,946,223
RLG	Roolife Group Ltd	0.004	-20%	511000	$7,480,156
TEM	Tempest Minerals	0.004	-20%	389556	$3,672,649
VHM	Vhmlimited	0.265	-18%	741426	$71,223,734
8IH	8I Holdings Ltd	0.009	-18%	45185	$3,829,769
FGH	Foresta Group	0.009	-18%	2740289	$29,181,971
RR1	Reach Resources Ltd	0.009	-18%	949349	$9,618,745
ENV	Enova Mining Limited	0.0075	-17%	11199012	$12,721,507
ASP	Aspermont Limited	0.005	-17%	16000	$14,820,070
ERL	Empire Resources	0.005	-17%	2292630	$8,903,479
MEM	Memphasys Ltd	0.005	-17%	385909	$11,901,589
MTB	Mount Burgess Mining	0.0025	-17%	324577	$1,055,108
PLC	Premier1 Lithium Ltd	0.01	-17%	1122120	$4,416,727
TEG	Triangle Energy Ltd	0.0025	-17%	58910	$6,267,702

IN CASE YOU MISSED IT

Maronan Metals (ASX:MMA) has tapped mining engineer Matthew Hine as non-executive director, effective today. Hine has 20 years’ operational and technical experience spanning underground and open pit operations across Australia, New Zealand and Europe.

He’s previously held senior roles as chief operating officer at Adriatic Metals (ASX:ADT), general manager for OceanaGold (ASX:OGC) Waihi and Macraes operations and manager mining at Evolution Mining (ASX:EVN) Mungari operation.

In the path to mine approval for the Tumblegum South gold project in WA, Star Minerals (ASX:SMS) has appointed ResourcesWA as a consultant. They will assist with all aspects of the mine approval process, including environmental.

“At this time of robust gold prices, it is fantastic to have a resource on granted mining tenure that we can progress toward production,” Star Minerals MD Ashley Jones said. “Star Minerals’ goal is to transition to gold producer in early 2026, generating cash flows.”

Trading Halts

Ridley Corporation (ASX:RIC) – cap raise
Peak Rare Earths (ASX:PEK) – cap raise

At Stockhead, we tell it like it is. While Maronan Metals and Star Minerals 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.