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23 January 2020 06:50 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average29,18629,196-10.00-0.032.57
S&P 5003,3223,3211.000.033.12
NASDAQ9,3849,37113.000.145.14
FTSE 100 Index7,5727,611-39.00-0.51-0.14
DAX 3013,51613,556-40.00-0.301.48
CAC 40 Index6,0116,046-35.00-0.58-0.18
Nikkei 225 (Japan)24,03123,865167.000.700.88
HKSE28,34127,985356.001.271.56
SSE Composite Index3,0613,0529.000.283.31
S&P/TSX Composite Index17,60017,57228.000.162.81
NZ 5011,90311,89013.000.113.08
US Volatility (Vix)13
Overseas Market Report

US sharemarkets were mixed on Wednesday. Investors monitored news of the spread of the Wuhan coronavirus in China. The number of deaths from the virus has lifted to 17 with 550 cases reported. In response to earnings, shares in IBM rose by 3.0% but shares in Netflix fell by 2.9%. Shares in Boeing fell by 1.9%, up from the lows but acting as a drag on the Dow Jones index. Shares in Tesla rose by 3.5%. At the close of trade the Dow Jones index was down by 10 points or less than 0.1%. The S&P500 index rose by 1 point or less than 0.1% but the Nasdaq index was up by 13 points or 0.1%. 

Global oil prices eased by 2-3% on Wednesday after the head of the International Energy Agency said that he expected the global oil market to be in surplus by 1 million barrels per day in the first half of the year. Also the US Energy Information Administration expects US crude production from shale deposits to be at record highs in February. The Brent crude price fell by US$1.38 or 2.1% to US$63.21 a barrel. And the US Nymex price fell by US$1.64 or 2.8% to US$56.74 a barrel. 

Base metal prices fell by up to 2.8% on the London Metal Exchange on Wednesday with zinc down the most and aluminium down by 1%. But lead bucked the trend, up by 1.7%. 

The gold futures price fell by US$1.10 or 0.1% to US$1,555.30 an ounce. Spot gold was trading near US$1,557 an ounce in late US trade. Iron ore fell by US20 cents or 0.3% to US$95.40 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent62.6464.59-1.95-3.02-5.29
Oil - West Texas crude56.7458.38-1.64-2.81-6.12
Gold Spot $/OZ1,559.001,559.000.000.004.91
Silver Spot $/OZ17.8017.800.000.002.22
Iron Ore89.3089.300.000.005.59
Thermal Coal Newcastle67.9069.00-1.10-1.672.34
APAC Hard Coking Coal FOB153.00153.000.000.005.15
Aluminium ($US/t)1,7971,814-17.00-0.951.31
Copper ($US/lb)2.772.79-2.90-1.02-1.64
Lead ($US/t)1,9911,95833.001.673.77
Nickel ($US/t)13,56013,584-25.00-0.18-6.29
Zinc ($US/t)2,4082,478-70.00-2.812.75
Tin ($US/t)17,37017,525-155.00-0.880.14
Uranium ($US/lb)24.0025.000.00-0.20-2.97
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords7,2497,18168.000.955.14
S&P/ASX 2007,1337,06666.000.945.12
ASX 24 Futures7,061
Australian Market Report

Wednesday 22nd January - close.  Aussie shares shook off a weak lead from Wall Street and a slow start to the session, with the ASX 200 surging by 0.94 per cent or 66.4pts to 7,132.7. The gains were broad as the index easily cracked through 7100pts just days after breaking 7000pts for the first time. The improvements were easily enough to recoup Tuesday’s falls and keeps the market on track to have its best month in more than eight years and its best start to a year in over 30 years. The low interest rate environment and a US-China trade deal have helped push markets higher. 

Ashanti Headlines

AuMake International Ltd (AU8.ASX, 12cps, m.cap A$39.3m with 332.4m SOI, Cash $12.1m (Consumer Discretionary)

  • AU8 released its December quarterly report this morning. A significant improvement in the underlying performance of both the Broadway and AuMake businesses has delivered financial results beyond the traditional positive impact of high season. This improvement in underlying operational performance has resulted in the Company’s first anticipated positive EBITDA quarter (subject to audit). 
  • Highlights:
  • New record for financial performance delivered during the December 2019 quarter: 
    • Revenue – up 120% pcp* $26.0 million (December 18 quarter: $11.8 million) 
    • Gross margin – up 144% pcp to 51.9% (December 18 quarter: 21.2%) 
    • Gross profit – up 440% pcp to $13.5 million (December 18 quarter: $2.5 million) 
  • Material improvement in underlying growth drivers: 
    • Broadway – Record tour group visitation up 120% pcp 
    • AuMake – Same store revenue up 22% pcp 
  • Owned brand product revenue up 112% pcp 
  • Online sales up 18% to $4.6 million (September 2019 quarter: $3.9 million).  
  • Additional marketing revenue stream 
    • $0.5 million for December 2019 quarter ($0.3 million for September 2019 quarter) 
  • Second consecutive quarter of positive operating cashflow (+$2.7 million) with $12.1 million cash at bank and stronger than anticipated EBITDA performance vs prior quarter 
  • December quarter anticipated to be first quarter of positive operating EBITDA (subject to audit) 
  • Positive growth outlook to further increase share of inbound Asian tourist retail market
  • A link to the full announcement can be found here
  • Please contact your adviser or the desk on +61 9 6319 7807 should you wish to discuss further


Have a question? admin@ashanticapital.com.au

ERA Communications