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10 July 2018 07:42 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average24,77724,456320.001.31-2.13
S&P 5002,7842,76024.000.880.18
NASDAQ7,7567,68868.000.881.45
FTSE 100 Index7,6887,61870.000.920.09
DAX 3012,54412,49648.000.38-1.74
CAC 40 Index5,3985,37622.000.42-0.96
Nikkei 225 (Japan)22,05221,788264.001.21-2.83
HKSE28,68828,316373.001.32-7.33
SSE Composite Index2,8152,74768.002.47-8.22
S&P/TSX Composite Index16,45216,37281.000.491.54
NZ 509,0739,06211.000.121.50
US Volatility (Vix)13
Overseas Market Report

US sharemarkets increased on Monday as investors continued to focus on Friday's positive jobs report, while looking ahead to the beginning of an expected strong quarterly earnings season. The S&P500 Banks index rose by 2.7% with JPMorgan (+3.1%), Wells Fargo (+1.6%) and Citigroup (+2.7%) all scheduled to report on Friday. Industrial bellwether Caterpillar's shares (+4.1%) boosted the Dow. But Twitter shares fell 5.4% on reports that it suspended more than 70 million fake accounts in May and June, which could be negative for user growth. The Dow Jones rose by 320 points or1.3%. The S&P 500 index rose by 0.9% and the Nasdaq rose by almost 68 points or 0.9%.

Global oil prices increased on Monday due to the ongoing supply outages at Syncrude's oil sands facility in Canada. Producer Suncor said that production is expected to resume this month, but full production is not expected until September. Looming US sanctions on Iran, the world's fifth largest oil producer, threatens to further disrupt global supply. Brent crude rose by US96 cents or 1.2% to US$78.07 a barrel and the US Nymex rose by US5 cents or 0.1% toUS$73.85 a barrel.

Base metal prices mostly rose on the London Metal Exchange (LME) on Monday. S&P Global raised its copper and nickel price forecasts through to 2020. Nickel (+1.9%) was the strongest performer, but zinc fell by 1.7%.

The gold futures price rose by US$3.80 an ounce or 0.3% to $1,259.60 an ounce. The spot gold price was trading near US$1,257 an ounce in late US trade. Iron ore rose by 60 cents or 1.0% to US$63.25 a tonne. S&P Global forecast the iron ore market to be "slightly oversupplied" in 2019 and 2020.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent78.0777.110.961.242.11
Oil - West Texas crude73.9773.850.120.1612.52
Gold Spot $/OZ1,258.001,258.000.700.06-3.15
Silver Spot $/OZ16.1016.100.000.03-4.04
Iron Ore58.5057.900.601.11-7.07
Thermal Coal Newcastle116.10116.100.000.001.98
Coking Coal FOB ECP AUS202.20195.806.403.271.35
Aluminium ($US/t)2,1462,11036.001.69-6.55
Copper Mar-18 ($US/lb)2.842.842.600.92-13.97
Lead ($US/t)2,3322,3275.000.20-4.88
Nickel ($US/t)14,11813,850268.001.93-8.06
Zinc ($US/t)2,7162,763-47.00-1.70-15.80
Tin ($US/t)19,67019,393277.001.43-7.67
Uranium ($US/lb)23.0023.000.000.00-2.77
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,3666,35611.000.173.40
S&P/ASX 2006,2866,27214.000.223.98
ASX 24 Futures6,267
Australian Market Report

Monday 9 July - close. The Australian share market has closed higher for a third straight trading session, buoyed by mining and financial stocks. The materials sector was the main contributor to the gains on the broader market with BHP Billiton (BHP) climbing 2.1% on unconfirmed media reports that BP had offered more than US$10 billion for BHP’s US onshore shale oil and gas assets. BHP alone contributed roughly half of the entire markets gains. Other major miners, Rio Tinto (RIO) and South32 (S32) were also both higher by 1.5% and 0.8% respectively.The benchmark S&P/ASX 200 index closed up 13.7 points, or 0.22 per cent at 6,286 points on Monday at a fresh 10 1/2-year high, while the All Ordinaries index gained 10.7 points, or 0.17 per cent, at 6,366.4 points.

Ashanti Headlines

Alliance Mineral Assets Limited - Merger update and amended SIA

Under a Scheme Implementation Agreement ("SIA") dated 5 April 2018 between Tawana and Alliance, Alliance has proposed a merger of equals with Tawana to be implemented pursuant to a Tawana scheme of arrangement ("Scheme") under which, if implemented, Tawana shareholders will receive 1.1 new Alliance shares for every 1 Tawana share held at the Scheme record date, and Tawana shareholders and Alliance shareholders will each collectively hold an approximately 50% interest in the combined Alliance / Tawana group ("Merged Group"). The SIA has been amended to address the following matters:

  • in consultation between Tawana and the JSE it has been determined that Tawana shareholders with a registered address in South Africa will be treated as ineligible shareholders for the purposes of the Scheme, and will receive the net proceeds from the sale of the Alliance shares which they would have otherwise received (after deducting any applicable brokerage, stamp duty and other selling costs, taxes and charges) in lieu of receiving Alliance shares under the Scheme;
  • the timetable for the Scheme has been updated following receipt by Alliance of the ‘no objection’ ruling from the Singapore Exchange Securities Trading Limited (SGX-ST) (as announced on 12 June 2018) and to account for additional time taken to prepare Tawana’s Scheme documentation;
  • provision for the cancellation of A$0.50 Tawana options with an expiry date of 6 April 2021 for 354,196 Alliance shares; and
  • other technical and minor consequential amendments.

A conformed, consolidated version of the amended SIA is attached to this announcement.

The parties are working towards the following updated indicative timetable for the Merger:

All dates are indicative only and subject to change.


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