Argent Biopharma and Galan Lithium soar as ASX defies Trump tariffs with surprise stock rally

On April 3, 2025, the Australian Securities Exchange (ASX) was rocked by a sharp selloff triggered by escalating global trade tensions. US President Donald Trump’s announcement of sweeping new tariffs—including a 10% levy on key Australian exports such as beef, pharmaceuticals, and steel—sent shockwaves across the market. Billions of dollars were wiped from the ASX’s overall valuation within hours, and investor sentiment took a decisive bearish turn. Despite the macroeconomic headwinds, a surprising cohort of microcap and small-cap companies defied the downtrend with double-digit percentage gains, driven by sector-specific catalysts, deal rejections, regulatory wins, and growing investor appetite for speculative plays.

Among the top ASX gainers of the day was Argent Biopharma Limited, which surged by an impressive 53.85%, closing at AUD 0.20. The healthcare firm, focused on cannabinoid-based therapies, revealed that its flagship treatment, Cannepil, had received regulatory approval for prescription in Germany. This development marked a pivotal step in the company’s broader European expansion strategy, positioning Argent as a niche player in the global medicinal cannabis market. The news sparked renewed investor interest despite the stock having been down over 50% year-on-year prior to the rally.

Why did Galan Lithium’s rejection of a $150 million offer spark a rally?

Another standout performer was Galan Lithium Limited, which recorded a 42.86% gain, closing at AUD 0.15. The lithium exploration and development firm rejected a AUD 150 million acquisition proposal from a consortium including Zhejiang Huayou Cobalt Co. and Renault Group. The bid, which targeted Galan’s lithium brine assets in Argentina, was dismissed by the company’s board as significantly undervaluing its portfolio. This stance resonated with investors, particularly in light of increasing global demand for battery metals and ongoing concerns over supply chain security in the electric vehicle (EV) industry.

The lithium sector has experienced significant volatility over the past year, with commodity prices cooling from record highs seen in 2022–2023. However, sentiment around lithium has been buoyed in recent months by policy incentives in the United States and Europe aimed at accelerating EV adoption. Galan’s Argentine assets, located in the Lithium Triangle, are considered highly prospective and strategically vital for future supply chains. The company’s willingness to rebuff takeover attempts was interpreted by investors as a sign of strong internal confidence in future valuations.

What other sectors showed surprising strength?

The strength in select ASX stocks extended beyond lithium and biotech. Renewable energy firm GREENHY2 Ltd climbed 27.27% to AUD 0.014, supported by positive sentiment surrounding clean hydrogen initiatives in Australia’s energy transition roadmap. Backed by government policies aimed at reducing emissions and increasing investment in hydrogen hubs, microcap firms like GREENHY2 have become speculative darlings for investors seeking early exposure to emerging technologies.

In the basic materials sector, Culpeo Minerals Ltd gained 25.00% to AUD 0.015, and Astral Resources NL added 9.09% to close at AUD 0.18, continuing its strong one-year upward trajectory of over 190%. Astral has benefited from rising gold prices, which are often viewed as a hedge during geopolitical instability. Gold’s safe-haven status is being reaffirmed as global equity markets digest the implications of Trump’s protectionist agenda and its potential to destabilize global trade flows.

Healthcare player Cann Group Limited rallied 21.74% to AUD 0.028, with investors speculating on the expansion of its export pipeline and opportunities in European medicinal cannabis markets. Cann, like Argent, has seen a steep one-year decline of over 50%, but the April 3 surge indicated renewed confidence from retail investors chasing undervalued therapeutic stocks.

How did tech and energy names respond to market volatility?

Technology stocks also had moments of strength. X2M Connect Ltd, which provides smart device connectivity for utilities and municipalities, rose 16.67% to AUD 0.021, while Icetana Ltd, an AI-based video analytics company, added 12.50% to reach AUD 0.018. Both companies have seen significant corrections over the past year but remain in focus as artificial intelligence, automation, and smart infrastructure continue to dominate global tech narratives.

Meanwhile, ADX Energy Ltd, an oil and gas exploration firm, posted a 10.35% gain to close at AUD 0.032, despite enduring a steep 72.17% drop over the previous 12 months. The energy sector’s recovery is likely linked to short-term oil price volatility and speculative interest in smaller producers as geopolitical risks intensify globally.

Consumer and industrial names such as Stealth Group Holdings Ltd and Ntaw Holdings Ltd each rose 11.11%, to AUD 0.80 and AUD 0.25, respectively. Stealth Group, which has recorded a 196.30% one-year return, operates in wholesale distribution and industrial supply chains and has capitalized on post-COVID infrastructure spending. The company’s ability to grow earnings in a high-interest rate environment has attracted investor attention.

Are rare earths and critical minerals stocks regaining favour?

Rare earths and critical minerals stocks were also well-represented among the top gainers. RareX Ltd rose 14.71%, White Cliff Minerals Ltd gained 13.33%, and Peak Minerals Ltd added 9.09%, closing at AUD 0.012 with an eye-popping 397.83% one-year gain. These companies are increasingly seen as strategic plays as governments across Australia, Europe, and North America push for more diversified and domestic sources of supply for high-tech manufacturing and defense applications.

Investors also bid up shares in Peregrine Gold Ltd, Thunderbird Resources Ltd, and Metal Hawk Ltd. Metal Hawk’s stock, in particular, gained 8.89% to AUD 0.49, representing a staggering 600.00% year-on-year increase—a rare feat in the microcap resource space. The surge is largely attributed to its high-grade nickel and gold discoveries in Western Australia, alongside management’s disciplined capital deployment and exploration outcomes.

Gratifii Ltd, a customer engagement technology firm, rose 8.89% to AUD 0.098, with investors increasingly optimistic about its loyalty platform integrations across retail and hospitality clients. The convergence of digital engagement and customer retention technologies continues to offer upside for small tech firms with scalable solutions.

What does this divergence signal for the broader ASX outlook?

The sharp gains in these small-cap names occurred even as macroeconomic indicators signalled deepening headwinds. With Trump’s tariff announcement sending the Australian dollar lower and prompting fears of retaliatory trade measures, the broader ASX recorded widespread losses. Economists and analysts now expect the Reserve Bank of Australia to respond with up to four interest rate cuts in 2025 to cushion the domestic economy from external shocks and protect employment and consumption.

This divergence—where microcaps rally despite broader market turmoil—highlights the power of company-specific catalysts to override macro pressures in the short term. It also underscores the increased appetite for speculative positioning, especially in volatile market conditions where traditional large-cap investments may offer limited upside.

While many of these stocks remain risky due to limited liquidity and fundamental uncertainties, the April 3 gains illustrate how investor psychology is shifting. There is growing interest in sectors aligned with future megatrends: clean energy, rare earths, AI, medicinal cannabis, and electrification.

As global markets digest the implications of a new protectionist wave under President Trump and prepare for potentially looser monetary policy in Australia, investor focus may increasingly gravitate toward nimble, innovation-driven companies capable of executing against long-term macro tailwinds.