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03 October 2018 07:50 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,77426,651123.000.463.12
S&P 5002,9232,925-1.00-0.040.76
NASDAQ8,0008,037-38.00-0.47-1.36
FTSE 100 Index7,4757,496-21.00-0.28-0.40
DAX 3012,28812,339-51.00-0.42-0.48
CAC 40 Index5,4685,507-39.00-0.711.00
Nikkei 225 (Japan)24,27124,24625.000.106.88
HKSE27,12627,789-662.00-2.38-2.12
SSE Composite Index2,8212,79230.001.063.53
S&P/TSX Composite Index16,01716,104-87.00-0.54-1.51
NZ 509,3159,327-12.00-0.120.62
US Volatility (Vix)12
Overseas Market Report

US sharemarkets were mixed on Tuesday. Utilities and consumer staples were favoured over technology due to the attraction of dividends. Boeing (+1.1%) and Caterpillar (+1.7%) gained in response to the new North American trade agreement. But shares in Facebook fell by 1.9%. The Dow Jones index finished up by 123points or 0.5% to record highs after being up 173 points in afternoon trade. The S&P 500 index was down by less than 0.1% and the Nasdaq lost 38 points or 0.5%.

Global oil prices were little-changed on Tuesday. Analysts polled by Reuters forecast that US crude stocks rose about 2 million barrels last week ahead of data from industry group, the American Petroleum Institute. Brent crude fell by US18 cents or 0.2% to US$84.80 a barrel and the US Nymex price fell by US7 cents or 0.1% to US$75.23 a barrel.

Base metal prices were generally higher on the London Metals Exchange on Tuesday with aluminium up 1.5% and lead up 1.3%. But zinc lost 0.5% and tin lost 0.1%.

The gold futures price rose by US$15.30 an ounce or 1.3% to $1,207.00 an ounce. The spot gold price was trading near US$1,203 an ounce in late US trade. Iron ore rose US10 cents or 0.1% to US$69.60 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent84.8084.98-0.18-0.219.53
Oil - West Texas crude75.1875.23-0.05-0.077.71
Gold Spot $/OZ1,205.001,203.001.400.120.31
Silver Spot $/OZ14.7014.700.000.231.52
Iron Ore65.3065.000.300.385.32
Thermal Coal Newcastle114.10114.60-0.50-0.48-3.35
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)2,1022,07131.001.470.01
Copper Mar-18 ($US/lb)2.802.80-0.30-0.095.85
Lead ($US/t)2,0422,01626.001.26-0.78
Nickel ($US/t)12,42112,40615.000.12-2.26
Zinc ($US/t)2,6852,700-15.00-0.549.07
Tin ($US/t)18,94618,970-24.00-0.13-0.56
Uranium ($US/lb)28.0027.000.000.364.16
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,2466,293-47.00-0.74-2.66
S&P/ASX 2006,1266,172-46.00-0.75-2.93
ASX 24 Futures6,126
Australian Market Report

Tuesday 02 October - close. The Australian share market has closed lower, dragged down by banking and health care stocks while the Australian dollar has fallen after the Reserve Bank held the cash rate at 1.5 per cent for the 26th straight month. The benchmark S&P/ASX200 index was down 46.1 points, or 0.75 per cent, to 6126.2 points on Tuesday, while the broader All Ordinaries index was 46.9 points, or 0.75 per cent, lower at 6245.8 points.

Ashanti Headlines

AuMake International Ltd (AU8.ASX, 34cps, m.cap A$89.6m with 271.5m SOI, Cash $10.7m, Consumer Discretionary)

  • Ashanti will be hosting an investor information session for AuMake International Ltd at Steve's cellar in Nedlands on Friday 12th October from 2pm
  • Please reach out to Laura Cameron, lc@ashanticapital.com.au should you wish to attend

  • AuMake International Limited is an ASX listed retail company connecting Australian suppliers directly with daigou and Chinese tourists. AuMake engages with the growing and influential daigou and Chinese tourist markets, by offering a one-stop-shop retail network. This includes a range of Australian products across four main categories including: 

    – healthcare (supplements and food) 

    – skin, body care and cosmetics 

    – dairy products and baby food (including infant formula) 

    – wool and leather products. 

  • Quarterly Highlights:
    •  Sales of $7.04m - up 37% from the March quarter ($5.13m)
    •  Gross Profit of $1.08m - up 31% ($820,000)
    •  Gross margin of 15.4% -3.75% (16%). The month of June had a gross margin of 16.7%
    •  Owned Brand Sales of $374,000 - up 37% ($273,000)
    •  Operating expenditure declined 44% from $3.05m in the March quarter to $1.71m. Current trend indicating total operational cost breakeven during FY19 
    •  Strong financial position with $10.7m cash at bank and $3.6m in inventory 

  • Commentary and Catalysts:
    • AuMake are in discussions with JD.com on a wider collaboration 
    • Negotiations with a number of significant China based distributors are in advanced stages for distribution of AuMake owned brand products in China - This being an important step in achieving further margin growth.
    • FY18 full year results to be released late August. Year on year this will read well however the recent quarterly has shed light on what to expect here.
    • AuMake still have a strong cash position and are another step closer to operational breakeven.

Have a question? admin@ashanticapital.com.au

ERA Communications