Which small cap ASX shares were the best performers in October?

Small cap ASX shares typically do not move in tandem with the general market. This is due to the market’s size, liquidity and the standalone nature of its speculative businesses. Despite the S&P/ASX 200 Index (ASX: XJO) nosediving in the latter half of October, many small cap ASX shares continued to deliver eyewatering returns. Here are the best performing small cap ASX shares this month. 

1. E2 Metals Ltd (ASX: E2M) 

The E2 Metals share price spiked 200% in October after exceptional gold and silver drill results at its Mia prospect, Conserrat project, located in the Santa Cruz province of Argentina. Moving forward, the company has planned for further drilling to better define the structural context and controls on mineralisation. 

2. Pioneer Credit Ltd (ASX: PNC) 

Pioneer Credit is a financial services provider involved in acquiring and servicing unsecured retail debt portfolios. The company was involved in a controversial trading halt late 2019 after being in breach of debt and other covenants due to its accounting methods. This involved financiers acquiring the company’s debt and new replacement debt facilities coming into play to save the company. 

This month’s quarterly update highlighted what could be the beginning of a recovery story with the company highlighting a successful refinance and improved market conditions. The Pioneer Credit share price has increased 135% in October. 

3. Kleos Space SA (ASX: KSS) 

Kleos is a space-powered Radio Frequency Reconnaissance data-as-a-service (DaaS) company to clients in the defence, commercial and regulatory sectors. The Kleos Space share price increased 142% this month following a series of announcements regarding satellite contracts and launches.

On 22 October, the company announced the signing of four satellites for the Polar Vigilance Mission to increase its global coverage and broaden revenue opportunities. And on October 29, the company announced the final preparations before the launch of its scouting mission satellites scheduled for 7 November. The satellites will collect data over crucial areas of interest such as the Strait of Normuz, South China Sea, East/West Africa, Southern Sea of Japan and Northern Australian coast.  

4. Weebit Nano Ltd (ASX: WBT) 

The Weebit Nano share price has cooled off in recent days after delivering a peak return of almost 200% in October. The company develops next generation memory technology and plans to become a key player in this market. Weebit focuses on producing Resistive Random-Access-Memory (ReRAM) technology that is 1000 times faster and uses 1000 times less power than flash. 

Its shares have attracted significant trading volumes in the last three months which is likely to assist in its share price outperformance. The company’s quarterly update was also significant with highlights including a key productisation milestone, progressing embedded memory module development, filing three new patents and progressing discussions with potential production partners and customers. 

More reading

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• ASX 200 Weekly Wrap: ASX 200 has another shocker as US election approaches
• 5 things to watch on the ASX 200 on Monday
• These were the worst performing shares on the ASX 200 in October
• Is it time to buy ASX gold shares?

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. 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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