After closing in the red on Monday despite a strong opening, the Australian market is making another attempt to reach new heights today. By 12:30 PM AEDT, the ASX 200 had surged to 7,365, the highest level since 20 January 2022, gaining a decent 1.19%.
Coming to small caps, investors are also adding them to their portfolios, however, enthusiasm is not as strong as for frontline stocks, as geo-political tensions are not seeming to fade anytime soon. The ASX Small Ordinaries index (ASX:XSO) was seen 0.49% up at 3,293.2, by 12:30 PM AEDT, still struggling to break previous day’s high, unlike the frontline ASX 200 index. Nonetheless, a few ASX penny stocks are cheering investors with their massive intraday gains. Let us have a look at three such stocks.
ResApp Health Limited (ASX:RAP)
ResApp is a healthcare technology company, developing smartphone applications for the diagnosis and management of respiratory diseases. The company’s shares have been on a tear since the morning after the company announced positive results for a new novel cough audio-based COVID-19 screening test.
The results showcased a 92% sensitivity for detecting COVID-19 and it only uses a smartphone for testing. RAP shares have skyrocketed to a 52-week high of AU$0.105 and they are currently trading at AU$0.098, gaining 58.06% by 12:30 PM AEDT. The volume for the day has also been a massive 26.3 million shares, the highest one-day volume since March 2020.
Riversgold Limited (ASX:RGL)
Riversgold is an ASX-listed mining company, currently focused on the Pilbara and Yilgarn cratons in Western Australia. The company has a market capitalisation of AU$16.7 million and has been continuously minimising losses for last few years – from a loss of AU$3.86 million in FY19 to AU$1.66 million in FY20 to AU$1.63million last year.
The year 2022 has proven to be a great year for RGL shares. The stock is up 170.58%, including today’s 25% rally to AU$0.045, by 12:30 PM AEDT. Investors were on a buying spree after the company confirmed multiple lithium-bearing pegmatite dykes at the Tambourah Lithium Project. These initial rock chip results from Tambourah have proven to be highly encouraging for investors.
Noxopharm Limited (ASX:NOX)
The last stock on our list is a New South Wales-based biotechnology company Noxopharm, having a market capitalisation of AU$93.5 million. The company is actively developing its lead drug candidate Veyonda® for the treatment for cancer. Today, Veyonda® has been granted the Orphan Drug Designation by the United States Food and Drug Administration for its use in the treatment of soft tissue sarcoma.
This cheerful news has worked as a catalyst for investors’ demand for NOX shares, leading to a price surge of 21.88% to the last traded price of AU$0.39 by 12:30 PM AEDT. The volume for the day was recorded at over 628.5K shares.
Bottom Line
Investors should not get carried away after getting lucrative returns from penny stocks. Although these stocks are famous for delivering windfall returns on some occasions such as an earnings announcement, making a consistent return from this space is not easy money. Therefore, investors must do their own due diligence before investing.
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