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7 roaring ASX mid-cap shares last week

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Many ASX mid-cap shares have been on a tear over the past week. There were a couple of stand out performers in the aviation space, as well as the iron ore mining space. However, last week belonged predominantly to the ASX gold miners.

This is a reinforcement of just how uncertain the market is as Australia moves from lockdown. Fears over global trade and tensions, concerns over economic forecasts, and uncertainty about potential second wave infections are driving safe-haven investing. 

ASX mid-cap movers

The Regional Express Holdings Ltd (ASX: REX) share price rose an impressive 21.5% last week. On Wednesday, the company’s shares jumped by 38.3%. This was after deputy chairman John Sharp on Tuesday told ABC radio the airline was planning a domestic service similar to one that Virgin Australia had operated. Normally, such claims would be laughed off. However, REX runs a very tight ship and is talking about an achievable $200 million investment. 

The Champion Iron Ltd (ASX: CIA) share price popped to 15.26% up from Monday’s open. This was a recognition of the value of its 66.5% iron ore concentrate from its Bloom Lake operations in Canada. Iron ore has been remarkably resilient during the COVID-19 pandemic. Iron ore contract prices were up by 7% last week.

Resolute Mining Limited (ASX: RSG) saw its share price rise by 14.2%. Resolute is a well-performing gold mining company. In part, it has benefited by investor sentiment over gold. However, it also announced the success of the second tranche of its ~$195 million equity raising launched in January 2020. It also maintained FY20 guidance despite COVID-19 constraints.

Other gold miners that saw their shares rise last week include Silver Lake Resources Limited (ASX: SLR), which rose by 9.14% over the week, and Perseus Mining Limited (ASX: PRU), which saw its share price rise by 5.1%. Also, the Gold Road Resources Ltd (ASX: GOR) share price rose by 7.1%.

In the industrial sector, shipbuilder Austal Limited (ASX: ASB) saw its share price jump by 4.4% over the week. This is recognition of the solid management, consistent contract wins, and the defensive nature of the share. 

Foolish takeaway

The mid-cap shares on the ASX are very volatile. When things go well, they can jump several times more than their large-cap stablemates. However, when things go badly, they tend to fall by greater percentages as well.

Last week’s share price movements underscore the uncertainty in the market, yet there are still opportunities for discerning investors. For instance, Champion Iron should provoke interest in mid-cap iron ore miners.

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Daryl Mather owns shares of Austal Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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