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11 February 2020 07:57 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average29,27729,103174.000.601.57
S&P 5003,3523,32824.000.732.66
NASDAQ9,6289,521108.001.134.90
FTSE 100 Index7,4477,467-20.00-0.27-1.86
DAX 3013,49413,514-20.00-0.150.08
CAC 40 Index6,0166,030-14.00-0.23-0.36
Nikkei 225 (Japan)23,68623,828-142.00-0.60-0.69
HKSE27,24127,404-163.00-0.59-4.88
SSE Composite Index2,8902,87615.000.51-6.53
S&P/TSX Composite Index17,74117,65585.000.482.94
NZ 5011,78611,70383.000.712.03
US Volatility (Vix)15
Overseas Market Report

US sharemarkets rose on Monday. The S&P 500 and Nasdaq closed at record highs. Investors continued to monitor coronavirus news. Also investors prepared for more earnings reports and testimony to Congress from the Federal Reserve chair. Of the 324 S&P 500 companies that have reported quarterly results so far, about 71% have beaten earnings estimates, which is above the long-term average of 65%, according to IBES data from Refinitiv. At the close of trade the Dow Jones index finished just off session highs, up 174 points or 0.6% after being down 107 points. The S&P500 index rose by 0.7% and the Nasdaq index rose 108 points or 1.1%. 

Global oil prices eased by 1.5-2.5% on Monday. Reuters reported that "an OPEC/non-OPEC technical panel has recommended extending a current oil supply cut pact until the end of 2020 and more output reductions due to the impact of the coronavirus on oil demand, Algeria's oil minister said in a statement." Russia still isn't convinced that further output cuts are warranted. Brent crude fell by US$1.20 or 2.2% to US$53.27 a barrel. The US Nymex price fell by US75 cents or 1.5% to US$49.57 a barrel. 

Base metal prices were mixed on Monday. Nickel, tin and copper rose up to 0.9% while other metals fell up to 1.4%. 

The gold futures price rose by US$6.10 an ounce or 0.4% to US$1,574.70 an ounce. Spot gold was trading near US$1,573 an ounce in late US trade. Iron ore fell by US95 cents or 1.1% to US$81.70 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent53.2754.47-1.20-2.20-18.02
Oil - West Texas crude49.7549.570.180.36-15.74
Gold Spot $/OZ1,572.001,572.000.000.000.63
Silver Spot $/OZ17.8017.800.000.02-1.90
Iron Ore76.2076.60-0.30-0.42-13.46
Thermal Coal Newcastle68.1068.50-0.40-0.58-3.95
APAC Hard Coking Coal FOB150.50150.000.500.33-1.63
Aluminium ($US/t)1,6741,698-24.00-1.41-5.98
Copper ($US/lb)2.562.550.500.22-9.15
Lead ($US/t)1,7961,821-25.00-1.36-6.14
Nickel ($US/t)12,80012,687113.000.89-9.33
Zinc ($US/t)2,1262,140-15.00-0.68-10.96
Tin ($US/t)16,32016,174146.000.90-5.17
Uranium ($US/lb)25.0025.000.00-0.810.20
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords7,1447,10836.000.511.45
S&P/ASX 2007,0477,01334.000.491.70
ASX 24 Futures6,984
Australian Market Report

Monday 10 February 2020 - close. The Australian share market has closed lower after global concerns about the coronavirus outbreak caused falls in most sectors. After being down as many as 40 points in the morning, the S&P/ASX200 benchmark index rebounded somewhat in the afternoon to finish Monday down just 10.1 points, or 0.14 per cent, at 7,012.5. The broader All Ordinaries index dropped 13.4 points, or 0.19 per cent, to 7,108.

Ashanti Headlines

Southern Gold Limited (SAU.ASX, 16cps, m.cap A$24.4m with 152.6m SOI, Cash $11.5m (post placement), Base Metals Explorer)

  • SAU has received binding commitments from sophisticated and institutional investors in respect of a placement of 71,428,571 ordinary shares in the Company at $0.14 per share to raise $10m million, subject to shareholder approval (‘Placement’). The objective of the Placement is to lift the Company’s gold exploration effort in South Korea to a more significant level, including a doubling of the field teams and diamond drilling rate. 
  • Metal Tiger PLC (‘Metal Tiger’), has subscribed for a cornerstone position in the Placement under a subscription agreement. The agreement provides the right for Metal Tiger to nominate one Director to the Company for so long as Metal Tiger holds an interest in the Company of at least 10%. Prominent geologist, Mr Terry Grammer has been nominated under this provision.
  • Also joining the Southern Gold Board, effective immediately, is world-renowned economic geologist, Mr Douglas Kirwin. Mr Kirwin has been acting in a technical advisory capacity for Southern Gold but now steps up into a much more prominent role as non-Executive Director of the Company.
  • The share offering was also supported by the company’s four largest shareholders and several of the directors.
  • The new share issuance will be subject to shareholder approval at a general meeting of shareholders to be held in early to mid-March with a Notice of Meeting expected to be shortly forwarded to shareholders. 
  • Ashanti Capital Pty Ltd acted as Lead Manager and Bookrunner to the raising. 
  • Southern Gold Managing Director, Mr Simon Mitchell commented, “This is a truly transformative transaction as it injects significant project advancement funding that can immediately lift the exploration work rate across our South Korea gold holdings. Metal Tiger, as a new cornerstone investor, is technically sophisticated and highly selective. Its investment is an important vote of confidence in Southern Gold’s ability to leverage this unique position in South Korea into one of advanced discovery and value uplift. This is reinforced by the appointment to the Board of two industry-leading geologists, Douglas Kirwin and Terry Grammer, both with enviable discovery records, are top tier area-selection geologists and who appreciate what we are uncovering in South Korea.”
  • Please see link to full announcement here
  • Please contact your adviser or the desk on +61 8 6319 7807 should you wish to discuss further.

Have a question? admin@ashanticapital.com.au

ERA Communications