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15 October 2018 08:02 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average25,34025,053287.001.15-3.11
S&P 5002,7672,72839.001.42-4.75
NASDAQ7,4977,329168.002.29-6.41
FTSE 100 Index6,9967,007-11.00-0.16-4.22
DAX 3011,52411,539-16.00-0.13-4.95
CAC 40 Index5,0965,106-10.00-0.20-4.79
Nikkei 225 (Japan)22,69522,591104.000.46-1.73
HKSE25,80125,266535.002.12-5.44
SSE Composite Index2,6072,58323.000.91-2.79
S&P/TSX Composite Index15,41415,31797.000.63-3.74
NZ 508,9048,84360.000.68-3.96
US Volatility (Vix)21
Overseas Market Report

US sharemarkets rose on Friday by over 1%. Technology stock sled the gains with both Apple and Microsoft lifting by over 3.5%. In response to earnings results JPMorgan Chase fell by 1.1%,Citigroup rose by 2.1% and Wells Fargo rose by 1.3%. The Dow Jones rose by 287 points or 1.2% after holding in a 467 point range. The S&P500 index lifted by 1.4% and the Nasdaq index gained 168 points or 2.3%. Over the week the Dow lost 4.2% with the S&P 500 down 4.1% and the Nasdaq lost 3.7%.

Global oil prices rose modestly on Friday. The International Energy Agency said that the market looked "adequately supplied for now" and trimmed forecasts for global oil demand. Brent crude rose by US17 cents or 0.2% to US$80.43 a barrel and the US Nymex price rose by US37 cents or 0.5% to US$71.34 a barrel. Over the week Brent fell by US$2.29 or 2.8% and Nymex fell by US$1.91 or 2.6%.

Base metal prices were generally firmer on the London Metals Exchange on Friday. Lead rose by 2.7% and zinc rose by 1.6%. But tin lost 1.6% and nickel lost 0.2%. Over the week all metals rose except aluminium (-4.4%). Lead rose by 4.6%.

The gold futures price fell by US$5.60 an ounce or 0.5% to $1,222.00 an ounce. The spot gold price was trading near US$1,217 an ounce in late US trade. Over the week gold rose by US$16.40 or 1.4%. Iron ore rose by US45 cents or 0.6% to US$71.50 a tonne. Over the week iron ore rose by US$1.90 or 2.7%.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent81.7780.431.341.674.71
Oil - West Texas crude72.2971.340.951.334.78
Gold Spot $/OZ1,219.001,218.001.500.122.17
Silver Spot $/OZ14.6014.600.000.164.10
Iron Ore67.3067.300.000.036.57
Thermal Coal Newcastle109.20108.700.500.46-5.08
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)2,0342,01321.001.030.42
Copper Mar-18 ($US/lb)2.812.811.400.527.14
Lead ($US/t)2,0682,01554.002.663.33
Nickel ($US/t)12,57912,602-23.00-0.180.29
Zinc ($US/t)2,6762,63442.001.6013.42
Tin ($US/t)19,11319,262-149.00-0.770.23
Uranium ($US/lb)28.0028.000.000.001.85
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords5,9546,007-53.00-0.88-5.14
S&P/ASX 2005,8415,896-54.00-0.92-5.26
ASX 24 Futures5,824
Australian Market Report

Friday 12 October - close. The Australian share market has finished flat after its worst trading week in almost three years. The benchmark S&P/ASX200 index was up 11.9 points, or 0.2 per cent, at 5,895.7 points at 1630 AEDT on Friday, while the broader All Ordinaries was up 13 points, or 0.22 per cent, at 6006.5.

Ashanti Headlines

Berkeley Energia Ltd: (BKY.ASX, 49cps, m.cap A$126.6m with 258.4m SOI, Cash $101m, Uranium Developer)

Highlights:

  • Strong and growing local support for the Salamanca Project
    • The ‘Sí a la Mina’ campaign now has over 1,600 signatures; and
    • To date, the Company has received over 22,850 job applications with 400 of those coming from villages surrounding the mine and of those, over 116 from Villavieja alone, which represents 25% of the permanent population of the village.
  • Permitting Update
    • The Company is working closely with its legal advisors and the relevant authorities as it continues to seek an express resolution from the local municipality on the award of the Urbanism Licence, however there remains two items outstanding for the licence which the Company has now responded to;
    • A new general secretary to the municipality has been appointed following a temporary vacancy in the position;
    • The Company will issue a further update in due course regarding the likely timing of the commencement of construction; and
    • In the absence of certainty over the timing of the award of the Urbanism Licence which will allow the Company to commence construction the company is initiating a programme to reduce local and corporate costs.
  • Uranium market:
    • The uranium price continued to strengthen during the quarter, ending at US$27.38, up 21% since 30 June;
    • The Company has received a number of enquiries from the US, China and India for substantial term contract offtake commitments during the quarter;
    • The fundamentals for uranium remain very strong and in the opinion of many market observers has now reached a tipping point;
    • The Company has 2.75 million pounds of U3O8 under contract for the first six years, with a further 1.25 million pounds of optional volume, at an average price above US$42, compared with a spot price of US$27.38 per pound; and
    • The Company will continue to progressively build its offtake book and has granted the Oman sovereign wealth fund the right to match any future long term offtake transactions.

MD and CEO Mr Paul Atherley commented, “Over the past decade we have invested over €70 million into the Salamanca mine which is located in a region suffering from some of the highest levels of youth unemployment within the European Union. Our future €250 million investment requires no government subsidy, will potentially generate over 2,500 direct and indirect jobs, will stimulate the return of services such as schools, petrol stations and transport to the local villages and has the potential to bring back some of the 120,000 mainly young people who have left the area over the last few years to look for employment. We are firmly committed to developing the mine however continued investment is dependent on the company receiving the necessary approvals for the commencement of construction. We are working closely with the relevant authorities and are confident that with due process these approvals will be forthcoming however, in the meantime, we are taking the necessary steps to reduce costs.”

The Company will host a call for investors and analysts at 9.00 am BST (which is 7pm AEST) on Tuesday 16 October 2018. Paul Atherley, Managing Director and CEO, and Sean Wade, Chief Commercial Officer, will give a short presentation followed by a Q&A.

Dial in Details UK Toll Number: +44 (0)203 428 1542 UK Toll-Free Number: 0808 237 0040 Spain Toll Number: 911 143 608 Spain Toll-Free Number: 800 300 981 Australian Toll Number: +61 (0)2 9253 5844 Australian Toll-Free Number: 1800 389 368 Portugal Toll Number: 021 060 9104 Portugal Toll-Free Number: 800 855 623

PIN: 38494281#

Replay details (available until 10am BST on 17 October 2018):

Australia Toll Number: +61 (0)2 9273 4283 UK Toll Number: +44 (0)20 3426 2807 

UK Toll-Free Number: 0808 237 0026 

US Toll- Free Number: +18665358030 

Conference Number: 699821#


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ERA Communications