ASX stocks slide: Bio-Gene, Novatti, and Light & Wonder among 20 biggest losers on 8 May 2025

Australian equities experienced a volatile session on Thursday, 8 May 2025, as investors sold down riskier stocks in response to lingering inflation, weak global demand indicators, and uncertainty around the upcoming federal budget. The most significant declines were observed in the small-cap and microcap segments, where companies from the Basic Materials, Technology, and Healthcare sectors posted double-digit losses. Bio-Gene Technology Ltd, Novatti Group Ltd, and Light & Wonder Inc were among the most notable names on the list of 20 top losers, all of which suffered substantial percentage declines.

Why Did Bio-Gene Technology Stock Drop Over 16%?

Bio-Gene Technology Ltd led the day’s losses, falling by 16.67 percent to close at AUD 0.025. The agritech company, which develops insecticide technologies derived from natural compounds, is facing prolonged commercialisation delays and increased market scepticism regarding its go-to-market strategy. With only AUD 928 in turnover for the day and a market capitalisation of approximately AUD 5.03 million, the stock is trading at a fraction of its 2023 valuation. Its year-on-year performance has deteriorated by 58.33 percent, with investors appearing to lose confidence in the company’s ability to scale its technology and secure significant licensing deals.

What’s Driving the Selloff in ABX Group?

ABX Group Ltd, a junior miner focusing on rare earths and bauxite, dropped by 13.04 percent to AUD 0.04, reflecting broader weakness across the Australian exploration space. Turnover was light at AUD 15,389, with the company’s market cap slipping to just above AUD 10 million. While rare earths remain a strategically important category in Australia’s resource policy framework, subdued demand from China and limited progress in project development have weighed on investor sentiment. Over the past year, ABX shares have declined 33.33 percent as sentiment around early-stage resource plays continues to deteriorate.

Why Did Novatti Shares Drop 12%?

Novatti Group Ltd recorded a 12.00 percent decline to finish at AUD 0.022, with trading volume of AUD 49,338. The digital payments company has lost 57.69 percent of its value over the past year and is facing increasing pressure from both local and global fintech competitors. Despite attempts to pivot toward digital banking and transaction processing, Novatti has struggled to build scale and sustainable revenue. In a rising rate environment, investors are placing less value on unprofitable growth stories, leading to renewed selling in speculative technology names.

Did Profit-Taking Trigger Light & Wonder’s Sharp Drop?

Light & Wonder Inc experienced an 11.95 percent decline, closing at AUD 128.04 on AUD 20.58 million in turnover. As a U.S.-based gaming and entertainment technology provider with an active ASX listing, the company has attracted investor attention for its strong IP portfolio and global gaming system deployments. However, Thursday’s selloff appeared driven by profit-taking and broader weakness in consumer cyclical stocks, particularly those exposed to discretionary entertainment spending. Despite being one of the larger names on the top losers list, its one-year performance remains down 14.36 percent, reflecting ongoing revaluation pressure on high-multiple names.

Which Other Materials Stocks Were Hit Hard?

Paterson Resources Ltd declined by 10.53 percent to AUD 0.017 despite delivering positive one-year returns of 13.33 percent. Investor appetite appears to be waning for low-liquidity exploration firms, especially those without defined near-term drilling results. Cambium Bio Ltd fell 9.52 percent to AUD 0.19, extending its one-year decline to a staggering 76.25 percent. Cambium operates in the pre-commercial biotech space, where delays in clinical development and funding shortfalls continue to weigh heavily on market value.

Orion Minerals Ltd shed 8.33 percent to end the session at AUD 0.011, taking its one-year loss to 38.89 percent. The company is working to advance its copper project in South Africa, but political risks and capital market constraints are making progress difficult. Voltaic Strategic Resources Ltd also dropped 8.33 percent to AUD 0.011, although turnover was negligible at just AUD 113. With a market cap of AUD 6.24 million and a one-year loss of over 35 percent, the stock’s weakness underscores the broader lack of conviction in early-stage battery metals exploration.

CGN Resources Ltd lost 8.00 percent to AUD 0.115, and Aeris Resources Ltd fell 7.90 percent to AUD 0.175. Aeris, a copper-gold producer, remains under pressure due to higher input costs and operational complexity across its portfolio. Kuniko Ltd slipped 7.69 percent to AUD 0.12, reflecting ongoing development risks across its European battery metals exploration licenses. Investors are increasingly concerned about the ability of these firms to raise capital without aggressive dilution.

Are Healthcare and Green Hydrogen Stocks Losing Momentum?

Cambium Bio was not the only life sciences stock to falter. GREENHY2 Ltd declined 8.33 percent to AUD 0.011 as enthusiasm for hydrogen-focused industrial startups continues to wane. While the company has articulated long-term ambitions aligned with Australia’s clean energy roadmap, delays in pilot-scale deployment and a lack of commercial partnerships have eroded short-term investor interest.

What Happened to Nanoveu, Kuniko, and Marvel Gold?

Nanoveu Ltd closed down 8.57 percent at AUD 0.032 despite remaining up 88.24 percent year-on-year. The stock had previously rallied on the back of its nanotechnology-based screen protection business, but investors appear to be booking profits amid broader weakness in tech microcaps. Marvel Gold Ltd lost 7.14 percent to finish at AUD 0.013, but still retains a 44.44 percent gain over the past year, supported by favourable assay results and a rising gold price. Nevertheless, gold juniors have come under pressure from capital flight away from risk-heavy assets.

New Frontier Minerals Ltd also fell by 7.14 percent to AUD 0.013, reversing part of its impressive 160 percent year-on-year gain. The company, which has exploration activities in base metals, appears to be a casualty of generalised sector weakness rather than stock-specific news.

Why Are Battery Metal Stocks Like PMT and CR3 Losing Steam?

Patriot Battery Metals Inc declined 7.55 percent to AUD 0.245 on AUD 117,333 in turnover. Despite being positioned as a key player in the lithium exploration space, recent price softness in spodumene and investor caution around EV demand forecasts have created headwinds. Core Energy Minerals Ltd dropped 6.67 percent to AUD 0.014, continuing a year-long slump now totalling 65 percent. These moves reflect growing scepticism around the timelines and funding needs for battery metal development projects.

Bass Oil Ltd fell 6.82 percent to AUD 0.041 despite stable crude benchmarks. The stock remains down over 43 percent year-on-year as investors question the company’s long-term viability in Indonesia’s maturing fields.

What Broader Market and Policy Trends Are Impacting ASX Microcaps?

The top losers list was dominated by thinly traded microcap names, many of which are reliant on future capital raises to maintain operations. With inflation remaining sticky and the Reserve Bank of Australia holding interest rates at 4.35 percent, the cost of capital is unlikely to decline soon. Meanwhile, investor attention is turning to the federal budget, where proposed reforms to mining royalties and export taxation could further dampen sentiment in the materials sector.

China’s weaker-than-expected import-export data for April 2025 has also rattled commodities markets, undermining demand projections for iron ore, copper, and lithium. Against this backdrop, speculative ASX stocks—particularly those with exploration-stage assets or pre-revenue tech—are experiencing sustained devaluation.

What Does Sentiment Analysis Indicate for ASX Small Caps?

Institutional flows have clearly rotated away from the speculative end of the market. The absence of meaningful turnover in many of the worst-hit names suggests that retail traders are exiting positions, while fund managers reallocate toward dividend-paying, capital-efficient large caps. Small-cap ETFs have recorded net outflows for a third consecutive week, while liquidity in microcap names has dried up. The risk-off bias continues to deepen across financials, energy, and materials sectors that rely on long-duration capital investments.