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03 September 2018 07:35 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average25,96525,987-22.00-0.091.97
S&P 5002,9022,9010.000.012.15
NASDAQ8,1108,08821.000.263.81
FTSE 100 Index7,4327,516-84.00-1.11-2.96
DAX 3012,36412,494-130.00-1.04-2.00
CAC 40 Index5,4075,478-71.00-1.30-1.32
Nikkei 225 (Japan)22,86522,870-4.00-0.021.51
HKSE27,88928,164-276.00-0.980.77
SSE Composite Index2,7252,738-12.00-0.46-0.55
S&P/TSX Composite Index16,26316,372-109.00-0.66-0.96
NZ 509,2259,313-88.00-0.954.07
US Volatility (Vix)13
Overseas Market Report

US sharemarkets were mixed on Friday after the US and Canada failed to reach a trade agreement by month's end. There was light trading volume ahead of a holiday weekend. Shares in Apple rose by 1.2% to record highs. The Dow Jones index fell by 22 points or 0.1%. The S&P 500 index rose by less than 0.1% and the Nasdaq rose by 21 points or 0.3%. Over the week the Dow rose by 0.7%, the S&P 500 rose by 0.9% and the Nasdaq rose by 2.1%. Over the month the Dow rose by 2.2%, the S&P 500 rose by 3% and the Nasdaq rose by 5.7%.

Global oil prices fell on Friday. While trade war fears dominated there was also profit-taking ahead of a US holiday weekend. The number of oil rigs operating in the US rose by 2 last week. Brent crude fell by US35 cents or 0.5% to US$77.42 a barrel and the US Nymex price fell by US45 cents or 0.6% to US$69.80 a barrel. Over the week Brent rose by US$1.60 or 2.1%. Nymex rose by US$1.08 or 1.6%. Over the month Brent rose by 4.3% and Nymex rose by 1.5%.

Base metal prices ended weaker by between 0.5-3.7% on the London Metals Exchange (LME) on Friday with nickel down the most. But lead bucked the trend, up 0.1%. Over the week metals fell by up to 4.7% (nickel) but tin rose 0.1% and aluminium rose by 1.4%.

The gold futures price rose by US$1.70 an ounce or 0.1% to $1,206.70 an ounce. The spot gold price was trading near US$1,201 an ounce in late US trade. Over the week gold fell by US$6.60 or 0.5% and fell by 2.2% in August. Iron ore rose by US40 cents or 0.6% to US$66.15 a tonne. Over the week iron ore fell by US25c or 0.4%. Over the month iron ore fell by US$1.40 or 2.1%.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent77.7177.640.070.096.15
Oil - West Texas crude69.8869.800.080.112.03
Gold Spot $/OZ1,199.001,201.00-2.00-0.17-1.18
Silver Spot $/OZ14.5014.500.00-0.12-5.77
Iron Ore62.0061.200.801.361.42
Thermal Coal Newcastle115.20115.50-0.30-0.30-2.00
Coking Coal FOB ECP AUS182.20182.200.000.006.74
Aluminium ($US/t)2,1022,112-10.00-0.471.98
Copper Mar-18 ($US/lb)2.652.65-4.20-1.54-6.45
Lead ($US/t)2,0582,0552.000.11-3.88
Nickel ($US/t)12,70813,200-492.00-3.73-8.83
Zinc ($US/t)2,4622,474-13.00-0.52-8.01
Tin ($US/t)19,05219,270-218.00-1.13-5.56
Uranium ($US/lb)26.0026.000.000.192.32
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,4286,461-33.00-0.511.60
S&P/ASX 2006,3196,352-32.00-0.511.36
ASX 24 Futures6,330
Australian Market Report

Friday 31 August - close. The Australian share market has closed lower on the last major day of the profit reporting season, dragged down by the telecommunications sector as well as the miners after a dip in iron ore prices. The benchmark S&P/ASX200 index was 32.3 points, or 0.51 per cent, lower at 6,319.5 points on Friday, while the broader All Ordinaries index was down 32.7 points, or 0.51 per cent, at 6,427.8 points.

Ashanti Headlines

Greenland Minerals and Energy Limited: (GGG.ASX, 8.2cps, m.cap A$90.7m with 1,106.3m SOI, Cash $9.4m, Rare Earth's Developer)

  • Environmental Impact Assessment for the Kvanefjeld Project lodged with Greenland Government 
  • Follows extensive reviews by Greenland’s Environmental Agency for Mineral Resource Activities (EAMRA) and their advisory bodies since draft EIA was submitted in late 2015 
  • Consistent and constructive dialogue with EAMRA and their advisory groups has provided guidance to effectively address reviews and recommendations   
  • EIA draws on contributions from many international, independent specialist consultancies to ensure a rigorous, thorough and objective evaluation of the Kvanefjeld Project 
  • The Social Impact Assessment (SIA) was lodged in July, so the two key documents as a prerequisite to mining license are now within the ministerial system. In Greenland, the bulk of requirements on this permitting process is completed up front, the EIA will now be translated prior to a public consultation period. 
  • John Mair is in Greenland this week on a number of advancements including seeking to pull together more definitive timing on delivery of the mining license. Over the past weeks, the Shenghe Agreement has provided a timeline to definitive offtake and joint venture agreement. The submission of the EIA means the company has turned the final corner to Environmental license being issued. The IAEA will provide any required feedback on uranium production within two months. We will have more clarity on exact timing over the coming week, the last months of 2018 are shaping as key for project development going forward. 

  • A link to the full announcement can be found here

  • Please contact the desk on +61 8 6169 2668 should you wish to discuss further

AuMake International Ltd (AU8.ASX, 27cps, m.cap A$89.8m with 332.5m SOI (fully diluted), Cash $10.7m, Consumer Discretionary)

  • AU8 has this morning announced the execution of an exclusive sales agreement with Anhui Tiantong Renhe Culture Communication Co., Ltd for distribution of AuMake product via its network of media channels in China
  • JiaJia Shopping Co., Ltd will initially work with AuMake under the Agreement:
    • 24-hour TV shopping channel, e-commerce platform and distribution network with viewership of 385 million people across China and forecast sales of 1.5 billion in FY2018
    • Actual sales 2017 - 1.3 billion RMB (Forecast sales 2018 - 1.5 billion RMB)
    • JiaJia Shopping Co,. Ltd focuses on the aged population in China in line with AuMake's current marketing strategy
  • An initial range of AuMake owned brand and exclusive products are being processed for broadcast in mid-September 2018
  • Anticipated gross profit margins consistent with current AuMake owned brand products
  • Ongoing discussions with several other interested Chinese distributors
  • Executive Chairman Keong Chan commented "“AuMake’s decision to work with Tiantong and JiaJia was heavily influenced by their ability to specifically target and promote products to China’s ageing population, a growing market segment, and one that AuMake has identified as part of its existing business and marketing strategy. We are also extremely pleased with AuMake’s growing reputation with large Chinese distributors as a trusted partner for the promotion of new Australian products in China. This recognition comes from AuMake’s ability to promote new brands within the daigou and Chinese tourist markets in Australia, the scale of our operations, and the credibility and transparency that comes from being an ASX listed company. The number of opportunities and significant interest in AuMake from China is extremely exciting for the Company. In addition, AuMake is able to leverage these opportunities with minimal investment, as marketing costs in China will be borne by our Chinese partners and for these partners they also benefit from not having to expend large amounts of resources and capital in Australia given our existing presence in the local market. The Sales Agreement with Tiantong and JiaJia is our initial foray into the Chinese market and we will continue to grow our relationship with them and explore other distribution opportunities, providing AuMake with exponential financial and brand equity growth potential in China.”
  • A link to the full announcement can be found here
  • Please contact your advisor on +61 8 6169 2668 should you wish to discuss further

Have a question? admin@ashanticapital.com.au

ERA Communications