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24 July 2019 06:50 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average27,34927,172177.000.652.33
S&P 5003,0052,98520.000.682.04
NASDAQ8,2518,20447.000.583.07
FTSE 100 Index7,5577,51542.000.561.89
DAX 3012,4910201.001.641.76
CAC 40 Index5,6185,56751.000.921.75
Nikkei 225 (Japan)21,62121,417204.000.951.57
HKSE28,46628,37195.000.34-0.16
SSE Composite Index2,9002,88713.000.45-3.60
S&P/TSX Composite Index16,57316,51954.000.330.30
NZ 5010,88910,86722.000.204.82
US Volatility (Vix)13
Overseas Market Report

US sharemarkets lifted on Tuesday. Bloomberg reported that US Trade Representative Robert Lighthizer will head to China for talks on Monday. A debt ceiling and budget deal between US President Trump and US Congress also buoyed sentiment. Coca-Cola shares rose by 6.1% to a record high after the drink maker beat quarterly earnings expectations and raised its full-year organic revenue forecast. Shares of United Technologies rose by 1.5% after raising its full-year profit and sales outlook. The Dow Jones rose by 177 points or 0.7%. The S&P500 lifted by 0.7% and the Nasdaq gained 47 points or 0.6%. 

Global oil prices rose on US-China trade optimism and lower expected US crude supplies on Tuesday. US crude oil stockpiles likely fell for a sixth consecutive week, dropping by 4 million barrels, a Reuters poll showed. The Brent crude price rose by US57 cents or 0.9% to US$63.83 a barrel. And the US Nymex price rose by US55 cents or 1.0% to US$56.77 a barrel. 

Base metal prices were mixed on the London Metal Exchange on Tuesday. Lead (+1.4%) and zinc (+1.1%) lifted, but tin (-1.2%), copper (-0.9%) and nickel (-0.9%) all fell.

The gold futures price fell by US$5.20 or 0.4% to US$1,421.70 an ounce. The spot gold price was trading near US$1,417 an ounce in late US trade. Iron ore was unchanged at US$118.10 a tonne according to Reuters.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent63.8363.260.570.90-2.10
Oil - West Texas crude57.1256.770.350.62-1.35
Gold Spot $/OZ1,417.001,418.00-0.80-0.06-0.19
Silver Spot $/OZ16.4016.400.00-0.166.02
Iron Ore118.30117.600.700.598.92
Thermal Coal Newcastle73.9074.50-0.70-0.873.58
APAC Hard Coking Coal FOB172.00174.00-2.00-1.15-10.65
Aluminium ($US/t)1,7881,789-1.00-0.032.63
Copper Mar-18 ($US/lb)2.692.71-2.10-0.76-0.39
Lead ($US/t)2,0302,00228.001.407.01
Nickel ($US/t)14,13114,256-125.00-0.8817.58
Zinc ($US/t)2,4312,40427.001.12-4.54
Tin ($US/t)17,66517,885-220.00-1.23-7.37
Uranium ($US/lb)26.0025.000.000.993.45
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,8126,78131.000.460.99
S&P/ASX 2006,7256,69133.000.500.89
ASX 24 Futures6,691
Australian Market Report

Tuesday 23 July - close. The Australian share market has finished broadly higher with all sectors posting gains. The benchmark S&P/ASX200 index was up 33.4 points, or 0.5 per cent, to 6,724.6 points at 1615 AEST on Tuesday, while the broader All Ordinaries was up 31.3 points, or 0.46 per cent, to 6,812.5 points.

Ashanti Headlines

AuMake International Ltd (AU8.ASX, 15cps, m.cap A$47.3m with 312.1m SOI, Cash c$12.5m (Consumer Discretionary)

  • AuMake has advised that the acquisition of Broadway has now settled, with the Company assuming full operational control
  • As detailed in the acquisition announcement on the 17 April 2019, AuMake issued 17.2m ordinary shares at $0.151 per share (voluntary escrow two years) and paid $2.8m in cash, as the first tranche of consideration for the Broadway business. The acquisition of Broadway is integral to AuMake’s platform which consists of offline and online stores and a strategic partnership with JD.com. Broadway is expected to significantly improve financial performance (material earnings in FY20) while enhancing AuMake’s ability to incubate new brands for the Chinese market.
  • Overview of the Broadway business: Broadway has over 20 years’ experience in the Chinese tourism industry and is a market leader in Australia and New Zealand (ANZ) with their ability to attract Chinese tour groups to their retail stores where they are able to purchase ANZ brands and products. Chinese tourists are highly open to new ANZ brands and spread brand awareness.
  • Integration of Broadway business: AuMake has begun the process of expanding Broadway’s product mix (including AuMake’s owned brands), providing online services to allow for repeat purchases and increase the number of tour groups that visit the Broadway and AuMake offline stores.
  • Significant increase in July performance: To date during July, the Broadway business has experienced an 80% increase year-on-year (YoY) in tour group visitation and revenue which is expected to continue in the coming months. Performance is anticipated to improve further as the market moves towards high season (October to March) in line with further increases in tour group visitation from both existing and new Chinese travel agencies.
  • A link to the full announcement can be found here
  • Please contact your adviser of the desk on +61 8 6319 7807 should you wish to discuss further

Have a question? admin@ashanticapital.com.au

ERA Communications