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16 November 2018 07:43 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average25,28925,080209.000.83-1.97
S&P 5002,7302,70229.001.06-2.84
NASDAQ7,2597,136123.001.72-5.05
FTSE 100 Index7,0387,0344.000.06-0.30
DAX 3011,35411,413-59.00-0.52-3.59
CAC 40 Index5,0345,069-35.00-0.70-2.70
Nikkei 225 (Japan)21,80421,846-43.00-0.20-3.31
HKSE26,10325,654449.001.752.52
SSE Composite Index2,6682,63236.001.364.78
S&P/TSX Composite Index15,14515,13312.000.08-2.79
NZ 508,8338,8267.000.080.33
US Volatility (Vix)20
Overseas Market Report

US sharemarkets remained volatile over the Thursday session. Shares lifted from lows after Financial Times reported that US Trade Representative Robert Lighthizer told industry executives that the next round of tariffs on Chinese imports has been put on hold. Shares in retailers were mixed after reporting third-quarter results with Walmart down 2.0%, JC Penney up 11.5% and Dillard's down 14.9%. At the close of trade, the Dow Jones was up by 209 points or0.8% after tracking a 567 point range. The S&P500 index was up by 1.1% and the Nasdaq index was higher by 123 points or 1.7%.

Global oil prices rose on Thursday with some investors believing the sell-off over the past three weeks had been overdone. There are still doubts about how oil producers will respond to fears of a supply glut. Analysts largely shrugged off data from the US Energy Information Administration that showed crude inventories rose by10.3 million barrels last week (forecast +3.2 million barrels). Brent crude rose by US50 cents or 0.8% to US$66.62 a barrel and the US Nymex price rose by US21 cents or 0.4% to US$56.46 a barrel.

Base metal prices were mixed on Thursday with zinc, copper and tin up by as much as 3.2% with zinc leading the way. Other metals fell up to 1%.

The gold futures price rose by US$4.90 an ounce or 0.4% to $1,215 an ounce. The spot gold price was trading near US$1,213 an ounce in late US trade. Iron ore fell by US40 cents or 0.5% to US$74.15 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent66.6266.120.500.76-17.53
Oil - West Texas crude56.5856.460.120.21-21.33
Gold Spot $/OZ1,214.001,213.000.700.06-0.88
Silver Spot $/OZ14.3014.300.00-0.01-2.52
Iron Ore73.3073.300.000.008.80
Thermal Coal Newcastle104.20103.300.800.77-4.67
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,9081,926-18.00-0.95-5.83
Copper Mar-18 ($US/lb)2.752.75-0.10-0.04-1.22
Lead ($US/t)1,9121,932-20.00-1.01-8.64
Nickel ($US/t)11,18211,230-48.00-0.42-10.79
Zinc ($US/t)2,6492,56782.003.200.86
Tin ($US/t)19,40119,32477.000.401.36
Uranium ($US/lb)29.0029.000.000.006.19
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords5,8335,8258.000.14-2.42
S&P/ASX 2005,7455,7369.000.15-2.13
ASX 24 Futures5,755
Australian Market Report

Thursday 15 November - close. A rally in the final hour of trade wiped out heavy afternoon losses on the Australian share market as the ASX narrowly avoided a third straight session in the red. The benchmark S&P/ASX200 index closed up 3.2 points, or 0.06 per cent, at 5,736.0 on Thursday, while the All Ordinaries was up 2.9 points at 5,825.2. The share market looked to have run out of steam after it had sat flat at midday, dumping as much as 0.9 per cent in the afternoon. But bargain hunters swooped in over the final hour of trade to wipe out the losses and leave the headline indices essentially where they had been at the close on Wednesday.

Ashanti Headlines

MOD Resources Limited (MOD.ASX, 34cps, m.cap A$78.7m with 231.5m SOI, Cash $12.8m, Copper Explorer /Developer)

  • MOD Resources has announced that it has completed the acquisition of MTR's 30% stake in the T3 Copper Project (now 100% owner of the T3 Copper Project) and rights to purchase, at MOD's election, MTR's 30% interest in all other JV Exploration Assets that reach scoping study level, or after three years from completion of this transaction (November 2021).
  • 100% ownership provides MOD with full control of funding and/or strategic considerations enabling the accelerated financing and development of the T3 Project
  • Exploration at JV licenses will continue to be co-funded by MOD and MTR 70/30 enabling the JV to maintain the current high level of exploration activity
  • MOD's MD Julian Hanna commented, “This is a landmark transaction for MOD and its shareholders. With full ownership of the T3 copper mine and processing plant, MOD has laid the foundations to grow into a mid-tier copper producer, centering its operations around the T3 hub in the central Kalahari Copper Belt... Additionally, as part of MOD’s growth strategy, the Company has secured a very flexible arrangement to acquire the remaining JV Exploration Assets, in the MOD/MTR portfolio, if they reach scoping study level within three years, and a right for MOD to acquire all MTR’s interests in the JV Exploration Assets by November 2021. This allows MOD’s shareholders to gain maximum exposure to the upside of all future discoveries at the Company’s discretion.”
  • As part of the conditions precedent, 18 prospecting licences excluding the T3 Project (the JV Exploration Assets) are in the process of being transferred into a new Botswana registered joint venture company, Tshukudu Exploration (Pty) Ltd, which is owned 70% by MOD and 30% by MTR. Eight key licences have already been transferred (refer ASX announcement on 26 October 2018) and the remaining ten are well advanced in this process. MOD and MTR have waived the transfer of these licences as condition precedent to completion of the transaction and remain committed to securing their transfer as soon as reasonably practicable.
  • As part of the transaction:
    • MOD has issued MTR 17,090,000 shares and 40,673,566 unquoted options with a nil exercise price and expiring on 15 November 2021; and
    • Mr Michael McNeilly has been appointed to the board of MOD as a nominee of MTR
  • Please contact the desk on +61 8 6169 2668 should you wish to discuss further

Have a question? admin@ashanticapital.com.au

ERA Communications