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27 November 2018 08:33 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average24,64024,286354.001.46-0.19
S&P 5002,6732,63341.001.550.56
NASDAQ7,0826,939143.002.06-1.19
FTSE 100 Index7,0366,95383.001.201.39
DAX 3011,35511,193162.001.451.38
CAC 40 Index4,9954,94748.000.970.56
Nikkei 225 (Japan)21,89321,81281.000.373.34
HKSE26,37625,928449.001.736.71
SSE Composite Index2,5762,579-4.00-0.14-0.89
S&P/TSX Composite Index15,01315,0112.000.010.84
NZ 508,6848,66221.000.251.35
US Volatility (Vix)19
Overseas Market Report

US sharemarkets were firmer on Monday. Oil prices lifted 3% from 13-month lows, boosting the energy sector. And expectations of strong 'Cyber Monday' sales lifted the consumer discretionary sector. Shares in Amazon were up by 5.3%. Shares in General Motors lifted by 4.8% after announcing cuts to production and its workforce. GM's North American salaried workforce, including engineers and executives, will shrink by 15%, or about 8,000 jobs. At the close, the Dow Jones was up by 354 points or 1.5%.The S&P500 index was up by 1.6% and the Nasdaq index was higher by 143 points or 2.1%.

Global oil prices rebounded by around 2-3% on Monday after falling by between 6-8% on Friday. Helping sentiment was a lift inequities in both the US and Europe. Investors are focussed on a US China trade meeting later in the week and a December 6 meeting of OPEC oil producers. Brent crude rose by US$1.68 or 2.9% to US$60.48 a barrel and the US Nymex price rose by US$1.21 or2.4% to US$51.63 a barrel.

Base metal prices were weaker by up to 2.4% on the London Metal Exchange on Monday with zinc down the most. But tin rose 0.4% and aluminium rose by 0.1%.

The gold futures price fell by US80 cents an ounce or 0.1% to $1,222.40 an ounce. The spot gold price was trading near US$1,223 an ounce in late US trade. Iron ore fell by US$4.20 or 6.1% to US$64.70 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent60.4858.801.682.86-22.08
Oil - West Texas crude51.5751.63-0.06-0.12-23.70
Gold Spot $/OZ1,222.001,222.00-0.100.00-0.88
Silver Spot $/OZ14.3014.200.000.17-2.97
Iron Ore71.5073.10-1.60-2.191.92
Thermal Coal Newcastle101.40101.80-0.30-0.34-7.52
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,9401,9382.000.12-2.08
Copper Mar-18 ($US/lb)2.752.75-0.80-0.290.24
Lead ($US/t)1,9201,943-23.00-1.17-3.24
Nickel ($US/t)10,80410,849-46.00-0.42-8.71
Zinc ($US/t)2,5502,614-64.00-2.43-5.70
Tin ($US/t)18,88918,82069.000.37-2.36
Uranium ($US/lb)29.0029.000.000.344.49
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords5,7585,7509.000.15-0.02
S&P/ASX 2005,6805,6729.000.150.26
ASX 24 Futures5,685
Australian Market Report

Monday 26 November - close. The Australian share market suffered broad-based losses but it was the commodity-related stocks bleeding red which was the biggest drag on the indices. The benchmark S&P/ASX200 index was down 44.6 points, or 0.78 per cent, at 5671.6 on Monday, while the broader All Ordinaries was down 0.76 per cent at 5,749.6. 

Ashanti Headlines

OZ Minerals Limited (OZL.ASX, 8.51cps, m.cap A$2.75B with 322.9m SOI, Cash $454m, Copper Explorer /Developer)

Ashanti is pleased to be road-showing OZ Minerals (ASX.OZL) next week in Hong Kong next Wednesday 5th December and Singapore Thursday 6th December. Please be in contact if you would like to arrange a meeting ASAP.

OZ Minerals offers quality copper exposure and the company is entering an exciting growth phase. Highlights below;

  • Carrapateena development underway and on schedule for first production in 2019Q4.
  • OZ recently deployed around $400m of capital into acquiring their Brazilian portfolio via the acquisition of Avanco (ASX.AVB) earlier this year. Oz Minerals is excited about the potential of the Carajas province to host large IOCG ore bodies. OZ is the 2nd largest tenement owner after Vale in what is a very prospective but underdeveloped region. 
  • We are particularly excited by OZ's partnership (OZ earning up to 70%) with Cassini Resources (ASX.CZI) on the West Musgrave Joint Venture. A PFS is due for release on this project in Q2 CY19.
  • Consensus FY19 EBITDA of A$498M, FCF of -A$259 Yield 2.6%
  • OZL remains our favoured large cap exposer to Copper.  
  • Please contact the desk on +61 8 6169 2668 should you wish to discuss further.


Have a question? admin@ashanticapital.com.au

ERA Communications