The ASX was higher this morning with the S&P/ASX200 gaining 15.90 points or 0.22% to 7,327.60 and crossing above its 125-day moving average.
Over the last five days, the index is virtually unchanged, but is currently 4.00% below its 52-week high.
HUB24 Limited was again one of the strongest performers on the index up 5.73%, with ARB CORPORATION LIMITED (ASX:ARP) not far behind rising 5.71%.
Macquarie Group surged 3.7% to a record high of $189.22.
With NSW saying it will fling open borders to the double vaccinated, the travel sector soared.
Flight Centre rose 4.5%, Webjet gained 3.7% and Qantas rose 2.1%.
It wasn’t all good news though, Treasury Wine was the biggest drag, down 5.5% on a weak trading update which we reported this morning. As stated though, TWE isn’t in a bad position at all with a positive long-term outlook and plan.
- IAG fell 3.2% after ASIC launched court action over unpaid NRMA customer discounts.
- Pendal Group dived 11% after reporting a heavy outflow of funds under management.
- Platinum dived 6.5% after a major shareholder sell down.
- CBA turned down 0.3%.
ASIC takes aim at 'Pump and Dump' chat group
A private chat group received a rude awakening when they realised one of their members was none other than ASIC.
Revelations came to light on Monday that a group of 288 Australians using secure messaging app Telegram, were using the service to facilitate 'pump and dump' trades.
One of the members, however, was corporate watchdog the Australian Securities & Investments Commission (ASIC), which sent the group a not-so-subtle message telling the aptly named 'Pump and Dump Organisation' that all was not well with them.
ASIC warned the group that their activities were illegal and some members may be under investigation.
The group looks to have had an influence on small cap player YPB Group Ltd (ASX:YPB).
“YPB Group is the latest stock to be subjected to the pump and dump strategies of retail investors as it rose 250% in seven trading days. On Monday, October 4, shares in YPB Group opened at just $0.02 and by Tuesday, October 12, the stock had risen 250% to a high of $0.07," Wealth Within founder and analyst Dale Gillham said.
"During that time, the volume of shares traded rose from an average of around 4 million shares per day to a staggering 326 million shares by Friday, October 8.
“Let’s put this into perspective. Four million shares at $0.02 is $8,000 but 326 million shares at $0.04, which was the price of YPB on October 8 is $1.3 million. These figures are important for two reasons: the first is the low dollar value of trading shows that it is retail traders moving the price of YPB and secondly, how dangerous this type of trading is if retail traders can move a stock this fast.”
Pump and Dump Organisation facilitated the pumping of YPB shares via a Telegram chat room, however, the backfire was immense. Not only was ASIC in the chatroom, it had been watching YPB’s shares for several months.
The illegal activity by Pump and Dump Organisation could result in fines of more than $1 million or even jail time.
“What many involved in these chat forums, and indeed most investors don’t understand is that ASIC has sophisticated systems to monitor all trading including any suspicious trading,” Gillham said.
“ASIC also knows who is behind every share bought and sold on the stock market and they have recently made it very clear that they are targeting these chat forums, as well social media fin-influencers who talk about financial products including stocks.
“So, if you are visiting chat forums or other social media platforms and following or perpetuating talk about a stock or other financial product, you may be subjecting yourself to scrutiny by ASIC.”
On the small cap front
Corazon Mining Ltd (ASX:CZN) was up 8.11% at time of writing having completed its due diligence and exercised an option to acquire the Miriam Nickel Sulphide Project in Western Australia’s Goldfields region.
Alchemy Resources was up 7.69%. ALY notched up a hat-trick of highly sought-after tenement ballots at the Lake Rebecca Project in the Goldfields region of Western Australia.
Chase Mining Corporation Ltd (ASX:CML) was up 5.88%. Investee Red Fox Resources (ASX:FXR) Pty Ltd has applied for three exploration permits adjoining the Mt Carol exploration permit in the Selwyn district, 120 kilometres south of Cloncurry in northwest Queensland.
Piedmont Lithium Inc (ASX:PLL, NASDAQ:PLL, XETRA:) was up 3.05% following the appointment of Krishna McVey as vice president of human resources, adding further expertise to its leadership team.
Boadicea Resources Ltd (ASX:BOA) was up 2.94%, riding the wave of yesterday’s announcement that it was encouraged by the positive progress of IGO Ltd within the joint venture properties in Western’s Australia’s Fraser Range that has led IGO to intensify exploration activities.
Maximus Resources Limited was up 1.25% with diamond drilling now underway at its Hilditch West nickel target.