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21 August 2019 06:51 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average25,96226,136-173.00-0.66-4.39
S&P 5002,9012,924-23.00-0.79-2.56
NASDAQ7,9498,003-54.00-0.68-2.43
FTSE 100 Index7,1257,190-65.00-0.90-5.11
DAX 3011,6510-64.00-0.55-4.97
CAC 40 Index5,3455,372-27.00-0.50-3.74
Nikkei 225 (Japan)20,67720,563114.000.55-3.68
HKSE26,23226,292-60.00-0.23-8.81
SSE Composite Index2,8802,883-3.00-0.11-1.51
S&P/TSX Composite Index16,21316,304-91.00-0.56-1.65
NZ 5010,64610,804-158.00-1.46-1.00
US Volatility (Vix)18
Overseas Market Report

US sharemarkets fell in thin trade on Tuesday. US President Trump spoke on a range of issues including calling for the Federal Reserve to cut the federal funds rate by 100 basis points over time. President Trump is also considering a cut in payroll taxes. Investors look ahead to a speech from Federal Reserve chair, Jerome Powell, on Friday. Shares in home improvement retailer, Home Depot, rose 4.4% after its quarterly earnings beat market forecasts. A 10.4% fall in the Merval share index in Argentina weighed on sentiment. The Dow Jones fell by 173 points or 0.7% with the S&P500 lower by 0.8%, while the Nasdaq fell by 54 points or 0.5%. 

Global oil prices rose by up to 0.5% as investors continued to monitor comments by US President Trump on a range of issues including interest rates, payroll taxes and the possibility of a trade deal with China. The Brent crude price rose by US29 cents or 0.5% to US$60.03 a barrel. And the US Nymex price rose by US13 cents or 0.2% to US$56.34 a barrel. 

Base metal prices were mixed on the London Metal Exchange on Tuesday. Lead rose 0.3% and tin was flat but other metal prices fell by up to 1.5% with zinc down the most and copper down 1.1%. 

The gold futures price rose by US$4.10 or 0.3% to US$1,515.70 an ounce. The spot gold price was trading near US$1,507 an ounce in late US trade. Iron ore fell by US25 cents or 0.3% to US$88.45 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent60.0359.740.290.49-3.91
Oil - West Texas crude56.1156.13-0.02-0.040.86
Gold Spot $/OZ1,506.001,507.00-0.90-0.065.68
Silver Spot $/OZ17.1017.200.00-0.165.74
Iron Ore92.6092.600.100.08-22.13
Thermal Coal Newcastle66.0066.30-0.40-0.60-11.00
APAC Hard Coking Coal FOB157.50155.002.501.61-9.48
Aluminium ($US/t)1,7521,763-12.00-0.65-3.96
Copper Mar-18 ($US/lb)2.582.58-0.10-0.04-6.10
Lead ($US/t)2,0582,0516.000.300.65
Nickel ($US/t)15,87815,943-65.00-0.408.16
Zinc ($US/t)2,2162,250-34.00-1.51-8.16
Tin ($US/t)16,48016,4800.000.00-7.29
Uranium ($US/lb)25.0025.000.000.200.00
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,6276,55077.001.17-2.34
S&P/ASX 2006,5456,46778.001.20-2.32
ASX 24 Futures6,454
Australian Market Report

Tuesday 20 August - close. The Australian share market has enjoyed strong gains for a second straight day, with every sector advancing. The benchmark S&P/ASX200 index finished Tuesday up 77.6 points, or 1.2 per cent, to 6,545 points, while the broader All Ordinaries was up 76.9 points, or 1.17 per cent, to 6,627.4 points.

Ashanti Headlines

MOD Resources Limited (MOD.ASX, 39.5cps, m.cap A$118.7m with 303.7m SOI, Cash c$8.2m, Copper Explorer /Developer)

  • MOD has provided an update on the proposal from Sandfire Resources NL to acquire 100% of the issued shares of the Company by way of Scheme of Arrangement
  • First Court Hearing: On 20 August 2019, the Supreme Court of Western Australia approved the dispatch of the Company's Scheme Booklet (“Scheme Booklet”) and has ordered that the Company convene a meeting (“Scheme Meeting”) of its shareholders to consider and, if thought fit, approve the Scheme. 
  • Approval from Competition Authority of Botswana: The Competition Authority of Botswana have provided approval for the Scheme, which is necessary to implement the Scheme.
  • Release of Scheme Booklet: The Scheme Booklet, a personalised proxy form, election forms and notice for the Scheme Meeting will be released on the relevant stock exchanges following registration with the Australian Securities and Investments Commission and will also be available on the Company's website at www.modresources.com.au. The Scheme Booklet will be printed and mailed to shareholders.
  • Scheme Meeting: The Scheme Meeting, to approve the Scheme, will be held at 1304 Hay Street, West Perth, Western Australia on 1 October 2019 at 11:00am Western Standard Time (“WST”). If the Scheme is implemented, MOD shareholders (other than European shareholders, ineligible foreign shareholders and MOD shareholders who hold an unmarketable parcel) will receive scrip consideration of 0.0664 new Sandfire shares for every 1 MOD share held. Alternatively, MOD shareholders (other than European shareholders and ineligible foreign shareholders) may make an election to receive cash consideration of A$0.45 per MOD Share up to a maximum aggregate cash consideration of A$41.6 million. Eligible shareholders that do not make a valid cash election by 5:00pm WST on 19 September 2019 (or such later date agreed by MOD and Sandfire) will not receive cash consideration and will be issued Sandfire shares if the Scheme becomes effective.
  • Second Court Hearing: In the event that the Scheme is approved at the Scheme Meeting and all relevant conditions of the Scheme are satisfied or waived, the Company will apply to the Court for orders approving the Scheme.
  • Scheme Timetable:

  • General Meeting: MOD will also hold a General Meeting of shareholders at 10:00am WST on the same date and at the same place as the Scheme Meeting for shareholders to consider a resolution relating to MOD's acquisition of Metal Tiger Plc's 30% interest in certain exploration assets on the Kalahari Copper Belt. A notice of General Meeting to enable shareholders to consider the resolution put forward at the General Meeting will be dispatched with a copy of the Scheme Booklet on or around 27 August 2019.

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ERA Communications