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17 April 2019 06:51 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,45326,38568.000.262.34
S&P 5002,9072,9061.000.053.00
NASDAQ8,0007,97624.000.304.05
FTSE 100 Index7,4707,43733.000.443.34
DAX 3012,101081.000.673.56
CAC 40 Index5,5295,50920.000.362.28
Nikkei 225 (Japan)22,22222,16953.000.243.59
HKSE30,13029,811319.001.073.85
SSE Composite Index3,2543,17876.002.397.67
S&P/TSX Composite Index16,50216,515-13.00-0.082.24
NZ 509,9279,90818.000.194.79
US Volatility (Vix)12
Overseas Market Report

US sharemarkets rose on Tuesday. Shares in chipmaker Qualcomm rose 23.2% after it agreed with Apple to end the contract dispute that had been expected to be played out in the courts. Shares in Bank of America ended up 0.1% after data showed that earnings had beaten expectations. Shares in Blackrock (+3.1%) and Johnson & Johnson (+1.1%) also gained after their earnings surpassed forecasts. The Dow Jones rose by 68 points or 0.3%. The S&P500 index rose by 0.1%. And the Nasdaq index rose by 24 points or 0.3%.

Global oil prices rose on Tuesday. The focus was on near-term supplies. Military action between the National army and the government continues in Libya while sanctions are limiting oil output in Iran and Venezuela. But Reuters reported: "Gazprom Neft, the oil arm of Russian gas giant Gazprom, expects the global oil deal between OPEC and its allies to end in the first half of the year, a company official said on Tuesday." Brent crude rose by US54 cents or 0.8% to US$71.72 a barrel and US Nymex rose by US65 cents or 1.0% to US$64.05 a barrel.

Base metal prices fell by between 0.2-2.9% on Tuesday. Tin and nickel fell the least with zinc down the most. Copper was the exception, up 0.3%.

The gold futures price fell by US$14.10 an ounce or 1.1% to $1,277.20 an ounce. The spot gold price was near US$1,277 an ounce in late US trade. Iron ore fell by US$1.50 or 1.1% toUS$94.30 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent71.7271.180.540.766.79
Oil - West Texas crude64.3364.050.280.449.93
Gold Spot $/OZ1,276.001,277.00-0.40-0.04-2.00
Silver Spot $/OZ15.0015.000.00-0.03-1.94
Iron Ore87.8087.700.000.038.57
Thermal Coal Newcastle84.1084.30-0.30-0.30-10.39
APAC Hard Coking Coal FOB199.00197.002.001.02-1.00
Aluminium ($US/t)1,8381,848-10.00-0.55-1.97
Copper Mar-18 ($US/lb)2.932.930.400.141.07
Lead ($US/t)1,9001,935-34.00-1.77-7.07
Nickel ($US/t)12,86812,908-40.00-0.310.18
Zinc ($US/t)2,8992,986-87.00-2.902.42
Tin ($US/t)20,65020,690-40.00-0.19-2.23
Uranium ($US/lb)26.0026.000.000.00-4.95
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,3726,34824.000.381.71
S&P/ASX 2006,2776,25126.000.421.66
ASX 24 Futures6,252
Australian Market Report

Tuesday 16 April - close. Australian shares have closed higher, with the banking and health care sectors offsetting a dour day for energy and telecom stocks. The benchmark S&P/ASX200 index closed up 26 points, or 0.42 per cent, to 6,277.4 points at 1615 AEST on Tuesday, while the broader All Ordinaries rose 24.4 points, or 0.38 per cent, to 6,372.3.

Ashanti Headlines

AuMake International Ltd (AU8.ASX, 21cps, m.cap A$69.9m with 332.9m SOI, Cash $15.0m (Post Placement, Consumer Discretionary)

  • AuMake has announced that it has executed a binding agreement to acquire 100% of the business assets of affiliated inbound Chinese tourist retail network (“Broadway”) for total consideration of $14.2 million (plus GST and stock) (Acquisition).
  • The Company has completed a heavily oversubscribed placement to Institutional and Sophisticated investors to raise A$7 million (“Equity Raising”) to fund the Acquisition and provide additional working capital. Ashanti Capital acted as Lead Manager for the placement.

Highlights

Acquisition of affiliated inbound Chinese tourist retailer network (“Broadway”)

—Eight (8) stores across the east coast of Australia and New Zealand, increasing AuMake’s total retail footprint to twenty-five (25) offline stores

— Retention of highly skilled management team with over 20 years of experience in the Australian Chinese tourism industry

— Strong financial performance with growth opportunities and synergies with existing AuMake business

— Highly attractive acquisition terms that aligns Broadway with existing AuMake shareholders

Financial and Operational commentary

— Significant opportunities to materially increase sales and profitability for FY20, including:

  • Implementation of online sales functionality – Broadway currently does not provide online sales functionality to its 30,000 customers p.a.
  • Increase in owned brand product sales – Capitalising on Chinese tourists’ appetite for new brands and products which carry high gross margins
  • Increased number of Chinese tourists visiting Broadway affiliated and AuMake stores (both offline and online) – Aspirational target of 70,000 Chinese tourists for FY20 (35,000 FY19)
  • Decreased operational costs and cost of goods sold as a result of synergies and increased purchasing power

Please contact your adviser or the desk on +61 8 6169 2668 should you wish to discuss the acquisition in further detail.


Have a question? admin@ashanticapital.com.au

ERA Communications