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20 June 2019 06:50 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,50426,46638.000.153.21
S&P 5002,9262,9189.000.303.04
NASDAQ7,9877,95433.000.423.70
FTSE 100 Index7,4047,443-40.00-0.531.27
DAX 3012,3090-23.00-0.192.22
CAC 40 Index5,5185,5109.000.162.98
Nikkei 225 (Japan)21,33420,973361.001.720.15
HKSE28,20227,499703.002.561.49
SSE Composite Index2,9182,89028.000.961.64
S&P/TSX Composite Index16,51216,5038.000.050.67
NZ 5010,33310,30528.000.270.97
US Volatility (Vix)14
Overseas Market Report

The US Federal Reserve Open Market Committee (FOMC) left the federal funds target at 2.25-2.50%. The FOMC flagged a possible rate cut ahead by saying that "uncertainties" have increased about the economic outlook. "In light of these uncertainties and muted inflation pressures, the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective."

US sharemarkets posted modest gains after traders digested the latest interest rate decision. Healthcare rose 1% but banks lost 0.9%. The Dow Jones index rose by 38 points or 0.2%. The S&P500 index lifted by almost 9 points or 0.3% and the Nasdaq rose by 33 points or 0.4%. 

Global oil prices fell by up to 0.5% on Wednesday. According to the US Energy Information Administration, crude stocks fell 3.1 million barrels last week, compared with analysts' expectations for a draw of 1.1 million barrels. But traders said that softer equities markets ahead of the US rate decision weighed on sentiment in energy markets. The Brent crude price fell by US 32cents or 0.5% to US$61.82 a barrel. And the US Nymex fell by US14 cents or 0.3% to US$53.76 a barrel. 

Base metal prices were mixed on Wednesday. Nickel rose 1.3% and aluminium rose 0.3% but other metals fell by between 0.5% to 1.4%. Tin fell the most while copper fell the least. 

The gold futures price fell by US$1.90 an ounce or 0.1% to US$1,348.80 an ounce. The spot gold price was trading near US$1,352 an ounce in late US trade. Iron ore rose by US$2.25 or 2.0% to US$114.25 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent61.8262.14-0.32-0.51-14.39
Oil - West Texas crude54.2253.760.460.86-14.07
Gold Spot $/OZ1,359.001,360.00-1.10-0.086.38
Silver Spot $/OZ15.2015.200.00-0.034.72
Iron Ore105.60104.700.900.9014.19
Thermal Coal Newcastle70.6070.80-0.20-0.28-16.05
APAC Hard Coking Coal FOB194.00192.002.001.04-4.43
Aluminium ($US/t)1,7571,7526.000.31-2.75
Copper Mar-18 ($US/lb)2.702.681.500.56-1.48
Lead ($US/t)1,8931,916-23.00-1.214.38
Nickel ($US/t)12,02111,871150.001.260.16
Zinc ($US/t)2,5942,630-36.00-1.35-5.67
Tin ($US/t)18,95519,230-275.00-1.43-3.73
Uranium ($US/lb)24.0024.000.000.00-0.81
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,7296,64881.001.212.50
S&P/ASX 2006,6486,57078.001.192.66
ASX 24 Futures6,664
Australian Market Report

Wednesday 19 June - close. Local shares advanced to fresh 11.5 year highs on Wednesday, with the ASX 200 closed at 6648 after a gain of 1.2% or 78 points. The resolve of buyers was clear, with ASX 200 trading within sight of session highs for much of the day, before closing at the best levels of the day. Several factors conspired to give buyers more confidence. In broad terms the supportive sentiment for equities at present reflects the co-ordinated reduction in interest rates by global central banks. The RBA is at the forefront of this trend, with the minutes from the recent policy setting meeting suggesting lower rates in the near term. Market participants are pricing in two more rate cuts between now and the end of the year locally.

Ashanti Headlines

Independence Group NL: (IGO.ASX, 468cps, m.cap A$2,763m with 590.5m SOI, Cash $257m, Diversified / Base Metals Producer)

  • IGO has completed the expenditure requirement to increase its interest in the Plumridge Nickel Project to 90%
  • Under the farm-in agreement, IGO had the right to increase its interest in the Project from 51% to 90% through the expenditure of $5 million within four years from 31 January 2018. 
  • IGO met the expenditure requirement at the Project in 17 months by completing: 
    • Project-wide aircore drilling programmes (3km x 800m spacing); 
    • SPECTREM airborne electromagnetic (AEM) surveys; and  
    • Ground moving loop EM (MLEM) surveys over target areas to define bedrock conductors.
  • IGO has also commenced drilling of four bedrock targets that have been identified using the aircore drilling, AEM and MLEM datasets. The targets are considered prospective for Nova-style magmatic sulphide mineralisation (Ni-Cu) and Andromeda-style volcanogenic massive sulphide mineralisation (Cu-Zn).
  • JV Partner Arrow Minerals Limited has a residual 10% interest in the Project and can maintain its interest through contributing pro-rata to the joint venture.

Invictus Energy Limited: (IVZ.ASX, 4.1 cps, m.cap A$16.8m with 365.7m SOI, Cash ~$3.1m, O&G Explorer) 

  • Ashanti is pleased to be hosting the Zimbabwe Minister of Mines and Mining Development Hon. Winston Chitando in Perth next week. 
  • We will be holding select meetings for investors with Hon. Winston Chitando who will provide valuable insight into the current economic & political climate in Zimbabwe
  • Please reach out to the desk on +61 8 6319 7807 if you wish to arrange a meeting.

Have a question? admin@ashanticapital.com.au

ERA Communications