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24 March 2020 06:51 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average18,59219,174-582.00-3.04-33.51
S&P 5002,2372,305-68.00-2.93-30.64
NASDAQ6,8616,880-19.00-0.27-25.60
FTSE 100 Index4,9945,191-197.00-3.79-30.22
DAX 308,7418,929-188.00-2.10-32.94
CAC 40 Index3,9144,049-134.00-3.32-32.42
Nikkei 225 (Japan)16,88816,553335.002.02-27.79
HKSE21,69622,805-1.00-4.86-19.11
SSE Composite Index2,6602,746-85.00-3.11-12.24
S&P/TSX Composite Index11,22811,852-623.00-5.26-36.07
NZ 508,5088,4999.000.11-28.25
US Volatility (Vix)62
Overseas Market Report

US sharemarkets were weaker on Monday. The latest initiatives by the Federal Reserve failed to lift investor spirits. Maryland, Ohio, Louisiana and Delaware joined New York and California in issuing 'stay at home' orders. Congress was still struggling to come up with a stimulus package. Shares in Boeing rose by 11.2% after Goldman Sachs put a 'buy' rating on the stock. Shares in Amazon rose by 3.1% on solid demand for online purchases. The Dow Jones index fell by 582 points or 3.0% after being down 907 points. The S&P500 index lost 2.9% and the Nasdaq fell by 19 points or 0.3%. 

Global oil prices rallied into the close of trade on hopes that travel restrictions could stem virus infection and death rates across the globe. But investors focussed on global oil oversupply with Texas reportedly considering cutting production for the first time in 50 years. Brent crude rose by US5 cents or 0.2% to US$27.03 a barrel after being down 5%. The US Nymex price rose by US73 cents or 3.2% to US$23.36 a barrel. But US gasoline futures closed down by 32% - the largest percentage decline on record. 

Base metal prices fell by 1.9-4.6% on Monday with zinc down the least and copper down the most. 

The gold futures price rose by US$83.00 an ounce or 5.6% to US$1,567.00 an ounce. Spot gold was trading near US$1,553 an ounce in late US trade. Iron ore fell by US$6.35 or 7.3% to US$80.20 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent27.0326.980.050.19-53.79
Oil - West Texas crude24.0923.360.733.13-53.16
Gold Spot $/OZ1,565.001,553.0012.000.78-5.67
Silver Spot $/OZ13.4013.300.201.32-27.88
Iron Ore83.0083.000.000.01-0.67
Thermal Coal Newcastle66.0066.30-0.30-0.38-2.72
APAC Hard Coking Coal FOB149.00152.00-3.00-1.97-7.45
Aluminium ($US/t)1,5271,559-32.00-2.04-9.60
Copper ($US/lb)2.122.19-7.10-3.24-18.73
Lead ($US/t)1,5951,643-49.00-2.95-14.75
Nickel ($US/t)10,80611,155-349.00-3.13-13.17
Zinc ($US/t)1,8111,845-34.00-1.86-13.61
Tin ($US/t)13,33513,980-645.00-4.61-19.80
Uranium ($US/lb)24.0024.000.001.04-1.02
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords4,5644,854-290.00-5.98-35.40
S&P/ASX 2004,5464,817-271.00-5.62-34.85
ASX 24 Futures4,522
Australian Market Report

Monday 23 March 2020 - close. The Australian share market has dived to an almost eight-year low as borders close and businesses shut in efforts to slow the spread of the coronavirus. The benchmark S&P/ASX200 finished Monday down 270.6 points, or 5.62 per cent, to 4,546, while the All Ordinaries index plunged 290.2 points, or 5.98 per cent, to 4475.8. The index has now dropped 36.8 per cent in the 22 trading sessions since February 20, and closed on Monday at its lowest level since December 6, 2012. Some businesses have closed, as have state and territory borders along with stricter measures to control the pandemic.

Ashanti Headlines

AuMake International Ltd (AU8.ASX, 3.6cps, m.cap A$12m with 332.4m SOI, Cash $12.1m (Consumer Discretionary)

  • On 28 January 2020, the Company identified the potential disruptive impact of novel coronavirus on travel of Chinese tourists and immediately invested additional resources to grow its online channels to reach customers in China. 
  • The result of this investment has seen the Company’s average daily online sales increase steadily with a one day record of $237,000 in online sales achieved on 19 March 2020 (the previous record of $173,000 was achieved on 2 February 2020). Owned and exclusive brand online sales have also grown materially during this period delivering higher margins. 
  • The increase in online sales has materially offset the reduction in offline sales with the temporary closure of all but four AuMake stores, which remain trading at pre-COVID-19 sales levels. 
  • Through an analysis of sales data over the last three months, consultation with the Company’s network in China and a favourable AUD/RMB exchange rate, Chinese demand for Australian health related products is observed to be robust, providing a level of insulation against the domestic retail environment in Australia. 
  • In recognition of the increasingly important role of online, AuMake has also assessed existing physical channels to China in consultation with its logistics providers and confirms that these channels remain open for the foreseeable future. 
  • AuMake is closely monitoring the rapidly changing environment and has put in place mitigation strategies across its supply chain to allow the business to respond dynamically in the event of material change. As an example, a large proportion of the Company’s offline customers are being transferred to its online database to allow those customers to continue purchasing online should there be a requirement to temporarily close the remaining four stores during the COVID-19 crisis. With its strong balance sheet, operational flexibility and continued performance of online sales, the Company reconfirms its ability to navigate the remainder of CY20 and will continue to update the market as necessary. 
  • Please contact your adviser or the desk on +61 8 6319 7807 should you wish to discuss further.

ResApp Health Ltd: (RAP.ASX, 8.8cps, m.cap A$61.7m with 726m SOI, Cash $7.9m, Healthcare and Equipment Services) 

  • ResApp and Phenix Health Pty Ltd, mobile clinic software developers and providers of an online virtual clinic, have entered into a joint development agreement (JDA) to integrate ResApp’s acute respiratory diagnostic test, ResAppDx-EU into Phenix’s telehealth smartphone app. 
  • Respiratory disease is involved in up to half of all telehealth consultations and ResAppDx-EU is the only solution for accurately diagnosing respiratory disease during a telehealth consultation that does not require additional hardware. “Telehealth is emerging as a key tool in tackling the COVID-19 pandemic and Phenix Health is well positioned to provide a valuable service to the Australian community,” said Dr Gillian Alexis, CEO and founder of Phenix Health. “Phenix provides video consultations to patients across Australia and, since the beginning of this crisis, we have seen a 30% month-on-month increase in the number of consultations. Our virtual clinic can be accessed nationwide through HealthEngine or directly via our downloadable app, and for patients told to self-isolate for possible COVID-19, these consultations are reimbursable under the MBS scheme. 
  • Phenix knows that implementing a telehealth service for patients must go beyond the limits of consumer video chat platforms like Skype which is why we are working with ResApp to bring their advanced diagnostic tool to our platform.” 
  • Tony Keating, CEO and Managing Director of ResApp, added, “We are excited to be working with Phenix to enhance their service. ResAppDx-EU offers the only solution to accurately diagnose respiratory conditions through telehealth and will provide telehealth clinicians with a remote testing capability to help manage the COVID-19 pandemic. By assisting general practitioners (GPs) to evaluate patient symptoms during a telehealth consultation, in particular if an infection has reached the patient’s lungs, GPs will be better able to determine whether a patient should attend a hospital or clinic for additional care, conserving strained healthcare resources.” 
  • Phenix and ResApp will work together under the JDA for the next three months to integrate ResAppDx-EU into Phenix’s telehealth app. During this time, ResApp and Phenix will negotiate the specifics of the fee-per-test payment model of using ResAppDx-EU on the Phenix App. 

Have a question? admin@ashanticapital.com.au

ERA Communications