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23 March 2020 07:45 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average19,17420,087-913.00-4.55-33.87
S&P 5002,3052,409-104.00-4.34-30.94
NASDAQ6,8807,151-271.00-3.79-28.16
FTSE 100 Index5,1915,15239.000.76-29.89
DAX 308,9298,610319.003.70-34.25
CAC 40 Index4,0493,856193.005.01-32.85
Nikkei 225 (Japan)16,55316,727-174.00-1.04-29.50
HKSE22,80521,7091.005.05-16.49
SSE Composite Index2,7462,70243.001.61-9.67
S&P/TSX Composite Index11,85212,171-319.00-2.62-33.58
NZ 508,4139,196-783.00-8.51-30.31
US Volatility (Vix)66
Overseas Market Report

US sharemarkets fell by 3.8-4.6% on Friday. New York joined California in ordering non-essential workers to stay at home. Investors await a US$1 trillion stimulus package that may be voted on, on Monday. After trading in a 1,437-point range the Dow Jones index closed lower by 913 points or 4.6%. The S&P500 index fell by 4.3% and the Nasdaq lost 271 points or 3.8%. Major indexes posted their biggest weekly falls since October 2008. Last week the Dow fell by 17.3%, the S&P 500 fell by 15% and the Nasdaq lost 12.6%. 

Global oil prices fell by as much as 10.7% on Friday. Reuters said hedge funds and other money managers rushed to get out of the Nymex contract on the final day of trade. Officials in Washington said an envoy would head to Saudi Arabia to deal with fallout of a Saudi-Russia oil price war. Brent crude fell by US$1.49 or 5.2% to US$26.98 a barrel. The US Nymex price fell by US$2.69 or 10.7% to US$22.53 a barrel. Over the week Brent fell by US$6.87 or 20.3%. Nymex fell by US$9.20 or 29% - the biggest weekly fall since January 1991. 

Base metal prices were mixed on Friday. Aluminium, copper and nickel fell by up to 3.0% with aluminium down most. Other metals rose up to 2% with lead up the most. Over the week metals fell between 5.3-12.3% with lead down the least and tin down the most. 

The gold futures price rose by US$5.40 an ounce or 0.4% to US$1,484.00 an ounce. Spot gold was trading near US$1,498 an ounce in late US trade. Over the week gold fell by US$31.70 or 2.1%. Iron ore fell by US$3.95 or 4.4% to US$86.55 a tonne. Over the week iron ore fell by US$4.45 or 4.9%.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent24.7126.98-2.27-8.41-57.76
Oil - West Texas crude20.8522.63-1.78-7.87-60.94
Gold Spot $/OZ1,490.001,499.00-8.30-0.56-9.32
Silver Spot $/OZ12.4012.60-0.20-1.67-32.90
Iron Ore83.0085.20-2.20-2.581.16
Thermal Coal Newcastle66.3066.200.100.23-3.35
APAC Hard Coking Coal FOB149.00152.00-3.00-1.97-7.45
Aluminium ($US/t)1,5591,608-49.00-3.05-7.55
Copper Mar-18 ($US/lb)2.192.20-0.90-0.43-15.36
Lead ($US/t)1,6431,61232.001.97-15.01
Nickel ($US/t)11,15511,174-19.00-0.17-11.33
Zinc ($US/t)1,8451,8378.000.44-12.13
Tin ($US/t)13,98013,91070.000.50-15.63
Uranium ($US/lb)24.0024.000.000.21-2.03
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords4,5484,854-306.00-6.30-37.09
S&P/ASX 2004,5194,817-298.00-6.19-36.70
ASX 24 Futures4,450
Australian Market Report

Friday 20 March 2020 - close. The Australian share market has finished its worst week since October 2008 with a modest daily gain. The benchmark S&P/ASX200 finished Friday up 33.7 points, or 0.7 per cent, at 4,816.6, while the broader All Ordinaries index gained 44.9 points, or 0.93 per cent, to 4,854.3. The market gained on the open and was up as much as 4.8 per cent around lunchtime but sunk lower as the afternoon wore on.

Ashanti Headlines

Southern Gold Limited (SAU.ASX, 11.5cps, m.cap A$12.83m with 128.33m SOI, Cash $5.7m (post placement), Gold Explorer)

  • Due to changing market and business conditions the Company is withdrawing the placement offer made to institutional investors announced to ASX on 11 February 2020. 
  • An alternative offer has been made and commitments received for the subscription of 40,000,000 Southern Gold Ltd ordinary shares at 10c per share, to raise $4 million (before costs). 
  • AIM listed investment specialist, Metal Tiger PLC, has strongly supported the equity raising and has subscribed for 22,000,000 shares for $2.2 million. 
  • Metal Tiger nominee, Terry Grammer, will join the Southern Gold board as part of the transaction as originally outlined in the ASX release dated 11 February 2020. 
  • Post transaction cash balance will be ~$5.5 million and support a minimum of 12 months field campaign, including the diamond drilling of multiple projects, targeting significant news flow in 2020-21 
  • MD Simon Mitchell commented, “We are in unprecedented markets – perhaps a 1 in 100-year event – and this has clearly had an impact on our ability to execute the original equity raising. However, it is times like these that good supportive major shareholders, a solid new cornerstone investor such as Metal Tiger PLC and the backing of an excellent broker in Ashanti Capital, have all contributed to pulling together $4 million in the most difficult of markets. While we will be prudent with expenditure going forward, the raising enables Southern Gold to continue to maintain momentum in our field programmes and drilling, perhaps the most critical factor in a junior explorer’s ability to survive downturns. We have a brilliant team in South Korea that has stepped up to the task and is executing the drilling at Beopseongpo where we are already seeing some excellent drill core come from the Hand of Faith target. We await the assays from this most recent work very eagerly!”
  • 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