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21 April 2020 09:32 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average23,65024,242-592.00-2.4423.35
S&P 5002,8232,875-51.00-1.7922.48
NASDAQ8,5618,650-89.00-1.0324.44
FTSE 100 Index5,8135,78726.000.4511.98
DAX 3010,67610,62650.000.4719.57
CAC 40 Index4,5284,49929.000.6511.84
Nikkei 225 (Japan)19,46419,669-205.00-1.0417.59
HKSE24,33024,380-50.00-0.216.69
SSE Composite Index2,8532,83814.000.503.89
S&P/TSX Composite Index14,38814,36028.000.2021.40
NZ 5010,69610,763-66.00-0.6216.31
US Volatility (Vix)44
Overseas Market Report

US sharemarkets fell on Monday as crude oil prices plunged, while investors turned cautious over what is expected to be a disappointing week for earnings and economic data. Energy sector shares fell by 3.3%, led lower by Exxon Mobil (-4.7%) and Chevron (-4.1%). Boeing (-6.8%) was the worst performer on the Dow Jones Index. Shares of United Airlines fell by 4.4% after it warned of a US$2.1 billion pre-tax loss in the first quarter. But "stay-at-home" stocks Amazon.com (+0.8%), Netflix (+3.4%) and Roku (+2.6%) all climbed. The Dow Jones index closed lower by 592 points or 2.4%. The S&P500 index fell by 1.8% and the Nasdaq index fell by 89 points or 1.0%. 

US crude oil futures turned negative on Monday for the first time in history, ending the day at -US$37.63 a barrel as traders sold crude heavily due to rapidly filling storage space at the key Cushing, Oklahoma hub. The May contract is due to expire on Tuesday. Brent crude - the global benchmark - fell by US$2.51 or 8.9% to US$25.57 a barrel. The May US Nymex price plunged by US$55.90 or 306% to -US$37.63 a barrel. The June US Nymex contract - traded more actively - settled at a much higher level of US$20.43 a barrel, but was still down by 18%.

Base metal prices were mixed on the London Metal Exchange on Monday. Nickel rose by 3.9% as the Chinese stainless steel market showed signs of recovering. Lead and tin rose by 0.9%, but copper (-0.7%) and zinc (-0.6%) fell the most. 

The gold futures price rose by US$12.40 an ounce or 0.7% to US$1701.60. Spot gold was trading near US$1,695 an ounce in late US trade. Iron ore rose by US75 cents or 0.9% to US$86.20 a tonne after Vale cut its output target for 2020.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent26.1625.570.592.31-3.04
Oil - West Texas crude1.75-37.6339.38104.65-92.20
Gold Spot $/OZ1,691.001,696.00-5.10-0.3012.80
Silver Spot $/OZ15.3015.300.00-0.0421.35
Iron Ore83.3083.100.200.26-1.68
Thermal Coal Newcastle61.5062.00-0.50-0.81-7.24
APAC Hard Coking Coal FOB130.50130.500.000.00-17.92
Aluminium ($US/t)1,4641,470-5.00-0.37-6.07
Copper ($US/lb)2.312.32-1.30-0.565.32
Lead ($US/t)1,6671,65314.000.861.47
Nickel ($US/t)12,44711,977470.003.9311.58
Zinc ($US/t)1,9361,948-13.00-0.644.93
Tin ($US/t)15,22815,090138.000.918.93
Uranium ($US/lb)33.0032.000.000.1535.06
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords5,3945,415-21.00-0.3911.11
S&P/ASX 2005,3365,353-17.00-0.3210.78
ASX 24 Futures5,329
Australian Market Report

Monday 20 April 2020 - close. Australian stocks have suffered their worst loss in three weeks after the US oil benchmark was smashed to its lowest level since 1999. The S&P/ASX200 benchmark index finished Monday down 134.5 points, or 2.45 per cent, to 5,353 points, while the All Ordinaries index was closed down 130 points, or 2.34 per cent, to 5,414. The plunge wiped out last week's gains and was the ASX200's worst loss since a 5.3 per cent plunge on March 27.

Ashanti Headlines

AuMake International Ltd (AU8.ASX, 5.8cps, m.cap A$19.3m with 332.4m SOI, Cash $10m (Consumer Discretionary)

  • AU8 released its March quarterly report this morning. Highlights below:
  • Business response to COVID-19 
    • Securing and investing into growth of online revenue streams 
    • Reduced operating cost base by 70%, including suspension of trading at all offline stores on 30 March 2020 
  • Financial 
    • Cash receipts - $13.3m 
    • Revenue – $11.2m 
    • Gross margin – 35.4% 
    • Cash at bank at end of March quarter – $10.0m. Nil debt. 
      • Material improvement in cashflow towards end of March quarter due to effective cost management and success in growing online sales 
  • Significantly leaner business (management anticipates a 70% reduction in total operating cost base) with new growth in online sales channels and exceptionally well positioned to benefit from the return of tourists from Asia 
  • Management have suggested the potential for offline sales to resume relatively soon and remain optimistic they have done enough at the cost line to navigate further disruptions if the lockdown remains in place.
  • Please see link to full announcement here.
  • Please reach out to 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