WHILE it may not have seemed like it in the junior oil and gas space, July 2016 saw a second wave of “significant” share prices among ASX Resource Companies, according to a report by Austex news.
The study found that 104 companies has their share price rise 50% or more as against 60 to 70 companies for most other months this year. The only comparable month is April when 102 companies rose by 50% or more.
Austex also reported that 57 companies which recorded “Significant Rise” in July jumped on the basis of positive news about their existing projects, as compared to 72 companies in April.
At the same time 17 companies with a “Significant Rise” announced new resource projects in both July and April.
The positive news for the oil and gas space was the fact that the biggest change over the three months recorded “Significant Rises” in that space went from five in April to 10 in July, and coal five in April to 9 in July, reflecting a growing early support for energy stocks.
On the other hand nickel and graphite numbers have fallen over the thre months.
But with nickel being the fastest rising metal price in July (13.8 per cent rise) Austex said there is an expectation that situation to change going forward.
Austex also reported that there were 30 Companies with “Significant Rise” that it felt were directly related to either existing or new projects, compared to 19 in April.
It said that nine of the July companies completed successful capital raising, and are expected to put the fund into new or existing projects going forward. Five other companies sorted out management and legal issues and may advance existing or new projects in the near future, while a further seven are either seeking new opportunities or clearing the decks of old projects ahead of a new challenge.