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30 August 2019 06:51 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,36226,036326.001.25-3.07
S&P 5002,9252,88837.001.27-2.94
NASDAQ7,9737,857117.001.48-3.63
FTSE 100 Index7,1847,11570.000.98-6.05
DAX 3011,8390138.001.18-2.54
CAC 40 Index5,4505,36981.001.51-1.11
Nikkei 225 (Japan)20,46120,479-18.00-0.09-5.75
HKSE25,70425,61588.000.34-8.68
SSE Composite Index2,8912,894-3.00-0.10-2.08
S&P/TSX Composite Index16,38416,272113.000.69-0.50
NZ 5010,65310,58073.000.69-2.08
US Volatility (Vix)18
Overseas Market Report

US sharemarkets rose on Thursday in response to indications that US-China trade talks could resume. Shares of retailer Dollar General rose 10.7% on a upbeat full-year profit forecast. But shares in Best Buy fell 8% and shares in Abercrombie & Fitch fell 15.1% in response to profit updates. The Dow Jones rose by 326 points or 1.3%, after being up 383 points. The S&P500 index rose by 1.3% and the Nasdaq gained 116.5 points or 1.5%. 

Global oil prices rose by 1.0-1.7% on Thursday. Reuters reported that stocks at the Cushing delivery hub for WTI futures have dropped 300,000 barrels since last week. Traders also watched the progress of Hurricane Dorian towards Florida and the potential to affect output of offshore US producers. Brent crude price rose by US59 cents or 1.0% to US$61.08 a barrel. And the US Nymex price rose by US93 cents or 1.7% to US$56.71 a barrel. 

Base metal prices were mostly higher on the London Metal Exchange on Thursday. Prices generally rose 0.2-0.7% but nickel rose 2.3%. However lead lost 0.3% 

The gold futures price fell by US$12.20 or 0.8% to US$1,536.90 an ounce. The spot gold price was trading near US$1,527 an ounce in late US trade. Iron ore fell by US$2.05 or 2.5% to US$81.45 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent61.0860.490.590.98-4.13
Oil - West Texas crude56.6156.71-0.10-0.18-2.48
Gold Spot $/OZ1,528.001,528.00-0.100.006.76
Silver Spot $/OZ18.2018.300.00-0.1610.08
Iron Ore87.2087.90-0.70-0.83-24.55
Thermal Coal Newcastle65.3065.60-0.30-0.46-8.80
APAC Hard Coking Coal FOB152.00148.004.002.70-7.32
Aluminium ($US/t)1,7231,7158.000.47-3.58
Copper Mar-18 ($US/lb)2.562.550.500.22-5.54
Lead ($US/t)2,0572,064-7.00-0.340.76
Nickel ($US/t)16,54916,182367.002.2715.53
Zinc ($US/t)2,2752,25817.000.73-8.51
Tin ($US/t)15,79815,76038.000.24-10.26
Uranium ($US/lb)25.0025.000.000.00-0.59
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,6066,6015.000.07-4.66
S&P/ASX 2006,5076,5017.000.10-4.93
ASX 24 Futures6,528
Australian Market Report

Thursday 29 August - close. The Australian share market has finished flat as traders wait for the other shoe to drop on the US-China trade war. The benchmark S&P/ASX200 index finished Thursday up 6.8 points, or 0.1 per cent, to 6,507.4 points, while the broader All Ordinaries was up 4.9 points, or 0.07 per cent, to 6,605.7 points.

Ashanti Headlines

AuMake International Ltd (AU8.ASX, 13cps, m.cap A$43.2m with 312.1m SOI, Cash c$9.9m (Consumer Discretionary)

  • AuMake released an impressive set of numbers for FY19 this morning. Highlights include:
  • Total sales were up 107% YoY to $44.3 million with 107% compound annual growth (CAGR) from FY17
  • Gross profit increased by 143% YoY to $7.6 million with gross margin of 17.2%, up from 14.7% in FY18
  • Significant consistent growth of owned brand products, with a CAGR of 269% from FY17, demonstrates AUMake's ability to promote and sell new high margin brands
  • Decreasing normalised operating expenses as a percentage of sales indicates a trend towards profitability
  • During FY19 AuMake acquired Broadway, a Chinese tourist focused business with over 20 years' experience adding an additional eight stores along Australia's eastern seaboard and New Zealand ensuring Aumake is now represented in all strategically relevant locations. Broadway’s existing relationships with Chinese travel agencies and in turn Chinese tour groups, presents a good opportunity to broaden the reach of AuMake owned brand and high margin, low profile ANZ products. 
  • AuMake also formed an exclusive strategic partnership with JD Worldwide, one of China's largest e-commerce platforms which allows the Company to leverage JD's online and logistics capability.
  • Outlook for FY20: AuMake expects to continue to increase its share of the daigou market, which continues to rationalise and consolidate. Significant growth is anticipated from the Broadway acquisition with substantial benefits to be gained from expanding Broadway’s product mix (including AuMake’s owned brands), providing online services to allow for repeat purchases and increasing the number of tour groups that visit the Broadway and AuMake offline stores. The AuMake team continues to work with JD Worldwide to further expand AuMake’s reach on the JD platform and build on the existing strong growth. New initiatives planned over the company year will further leverage the incredible opportunity for AuMake and our suppliers to take advantage of JD.com’s substantial resources, which would otherwise be unavailable to individual suppliers, to mutually incubate and build brands with a view towards significant volume and profitability. AuMake has set a $100m aspirational sales target of $100m+, increasing gross margin and material EBITDA for FY20.
  • Please see link to full FY19 report here
  • Please contact your adviser or the desk on +61 8 6319 7806 should you wish to discuss further.

Have a question? admin@ashanticapital.com.au

ERA Communications