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24 October 2019 07:49 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,83426,78846.000.170.10
S&P 5003,0052,9969.000.281.28
NASDAQ8,1208,10415.000.191.58
FTSE 100 Index7,2617,21248.000.67-0.42
DAX 3012,79812,75544.000.343.99
CAC 40 Index5,6535,658-4.00-0.080.45
Nikkei 225 (Japan)22,62522,54976.000.342.38
HKSE26,56726,786-219.00-0.821.09
SSE Composite Index2,9422,954-13.00-0.43-1.46
S&P/TSX Composite Index16,33616,392-56.00-0.34-2.75
NZ 5010,86110,8547.000.070.02
US Volatility (Vix)14
Overseas Market Report

US sharemarkets were modestly higher on Wednesday as investors digested earnings reports and broker updates. Shares in Apple rose by 1.3% after favourable comments by Morgan Stanley. After earnings results, shares in Caterpillar rose by 1.2% while shares in Texas Instruments fell by 7.5%. The Dow Jones rose by 46 points or 0.2% after trading in a 152-point range. The S&P500 index rose by 0.3% with the Nasdaq up by 15.5 points or 0.2%. 

Global oil prices were firmer by up to 2.7% on Wednesday. US crude inventories surprisingly fell in the past week. The Energy Information Administration reported that stocks fell by 1.7 million barrels. Analysts had expected a 2.2m barrel lift in stocks. Gasoline stocks also fell and there were smaller-than-expected net oil imports. Brent crude rose by US$1.47 or 2.5% to US$61.17 a barrel. And the US Nymex price rose by US$1.49 or 2.7% to US$55.97 a barrel. 

Base metal prices were generally higher on the London Metal Exchange on Wednesday, lifting by up to 1.2% with copper doing best. But tin fell by 1.8%.

The gold futures price rose by US$8.20 or 0.6% to US$1,495.70 an ounce. Spot gold was trading near US$1,492 an ounce in late US trade. Iron ore rose by US95 cents or 1.1% to US$86.95 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent61.1759.701.472.46-5.56
Oil - West Texas crude55.7555.97-0.22-0.39-2.69
Gold Spot $/OZ1,492.001,492.000.300.02-2.58
Silver Spot $/OZ17.6017.600.000.04-5.60
Iron Ore85.2086.40-1.10-1.31-9.46
Thermal Coal Newcastle67.0067.50-0.50-0.672.52
APAC Hard Coking Coal FOB155.00157.00-2.00-1.2716.54
Aluminium ($US/t)1,7211,71011.000.63-2.48
Copper Mar-18 ($US/lb)2.672.67-0.20-0.073.09
Lead ($US/t)2,2412,2338.000.378.21
Nickel ($US/t)16,56016,49170.000.42-5.88
Zinc ($US/t)2,5042,4986.000.226.92
Tin ($US/t)16,50716,806-299.00-1.78-0.10
Uranium ($US/lb)24.0025.000.00-0.81-5.24
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,8146,77836.000.53-0.62
S&P/ASX 2006,7106,67337.000.55-0.58
ASX 24 Futures6,690
Australian Market Report

Wednesday 23 October 2019 - close. The Australian share market has finished flat following a sluggish day amid more uncertainty over Brexit negotiations. The benchmark S&P/ASX200 index finished Wednesday up 0.9 points, or 0.01 per cent, to 6,673.1 points , while the broader All Ordinaries was down 0.4 points, or 0.01 per cent, to 6,778.2 points.

Ashanti Headlines

AuMake International Ltd (AU8.ASX, 12cps, m.cap A$39.9m with 332.4m SOI, Cash c$9.6m (Consumer Discretionary)

  • AU8 have announced strong results delivered during the September quarter. Highlights include:
  • Impressive financial performance:
    • Revenue – up 42% to $18.5 million (June 19 quarter: $13.0 million)
    • Gross margin – up 17.0% to 17.2% (June 19 quarter: 14.7%)
    • Gross profit – up 68% to $3.2 million (June 19 quarter: $1.9 million)
    • Owned brand revenue – up 67% to $1.0 million (June 19 quarter: $0.6 million)
    • Online sales – up 11% to $3.9 million (June 19 quarter: $3.6 million)
  • Tour group visitation is expected to significantly increase during the December quarter
  • Positive operating cashflow of $3.5 million
  • Organisational review and synergies realised during September quarter as AuMake matures into a sustainable high growth and profitable business.

Financial performance during the quarter improved materially due to the acquisition of Broadway as well as an improvement in general trading conditions. Financial performance is anticipated to improve with the transition into the high season (summer months) and as additional synergies between AuMake and Broadway are realised.

A link to the full announcement can be found here.

A call has been arranged with Executive Chairman Keong Chan tomorrow at 8am Perth / 11am Sydney time 25th October. Please reach out to your adviser or contact the desk on +61 8 6319 7802 for call details.

Completion of MOD Resources Acquisition

  • Sandfire Resources NL has announced that implementation of the Scheme of Arrangement (Scheme) for the acquisition of all the issued shares in MOD Resources Ltd was completed on 23 October 2019.
  • Sandfire now holds a 100 per cent interest in MOD’s key copper exploration and development assets in Botswana through its in-country subsidiaries, Tshukudu Metals and Tshukudu Exploration. These include the advanced T3 Copper-Silver Project and an extensive belt-scale exploration portfolio spanning ~11,700km2 in the Kalahari Copper Belt.
  • Sandfire has commenced optimisation of the current Feasibility Study for the T3 Project (refer MOD ASX Release, titled 'Feasibility Study Confirms Outstanding Project Economics for T3 Copper Mine', dated: 28 March 2019) and expects to publish an updated Feasibility Study and Ore Reserve in the June 2020 Quarter ahead of a Decision to Mine.
  • The Company has also recently appointed highly experienced mining executive Ian Kerr as T3 Mine Project Director, to manage all studies and development of the T3 Mine in Botswana and all associated infrastructure. This includes completion of the Feasibility Study, management of the final design and engineering, regulatory approvals, contractor selection, construction, commissioning and handover to the operational team.
  • In parallel, Sandfire will progress the permitting activities for T3 with approval of the Environmental and Social Impact Assessment (ESIA) document expected in the December 2019 Quarter, triggering a public review period and subsequent Mining Licence Application expected towards the end of this year.


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ERA Communications