It’s been another wild day of trading for the Hawsons Iron Ltd (ASX: HIO) share price. Yesterday, we covered how this little-known iron ore explorer had rocketed from 29 cents a share in early April to the $1.06 it recorded yesterday. That comes on top of an eye-watering 603% year to date return it was sitting at yesterday. Not to mention the stupendous 2,397% gain for the preceding 12 months.
However, those figures don’t come without some neck-cracking volatility. Monday saw Hawsons Iron shares add more than 18% to their value. But this was quickly taken down a notch yesterday when the company gave up almost 20% of its share price. As it stands today, the Hawsons Iron share price is down another 11.11%, closing at 64 cents a share after travelling as low as 60 cents and as high as 80 cents during the course of today’s trading session. How’s that for volatility.
Hawsons Iron share price redefines volatility
Hawsons Iron shares have also traversed between $1.06 a share and 57 cents a share over just the past five trading days. We now have a 52-week range of between 3.9 cents per share and $1.06 per share. What’s even more perplexing is that these moves are occurring despite no new news or announcements from Hawsons over May thus far.
The company’s last major release was a quarterly cash flow report released on 29 April. This could be feeding into the volatility we are seeing, despite the fact it did not contain any blockbuster numbers or announcements.
However, we have seen some major macroeconomic developments in recent days that could be feeding into market-wide volatility. The most significant was the announcement yesterday that the Reserve Bank of Australia (RBA) would be increasing the cash rate for the first time in 11 years. We’ve also seen a not-insignificant fall in the iron ore price over the past week or so.
But despite these developments, it has certainly been a rather remarkable journey that this company’s shares have been on in recent days.
At today’s closing Hawsons Iron share price, this ASX iron ore share has a market capitalisation of $457 million.