The Australian small-cap market had a very strong month with the S&P/ASX Small Ordinaries Accumulation Index up 6.0% and the S&P/ASX Small Industrials Accumulation Index up 5.9%.
The strength in the index was not broad-based with a number of ‘hot’ sectors driving the overall benchmark, in particular China-facing consumer stocks, cobalt and lithium stocks and tech plays.
The prevailing mood in small caps at present is very much ‘risk on’ and some stocks and sectors have become quite momentum driven with prices reaching new highs almost every day.
IPOs on the rise
The IPO market has sprung back to life and there are several new investment opportunities we are analysing at present including Wagners, a Queensland-based building materials company, Riverlea, the largest domestic pork producer, New Energy, a solar company, and workforce provider, Tandem.
View October 2017 reports