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28 April 2020 06:51 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average24,13423,775359.001.5111.54
S&P 5002,8782,83742.001.4713.26
NASDAQ8,7308,63596.001.1116.37
FTSE 100 Index5,8475,75295.001.646.11
DAX 3010,66010,336324.003.1310.67
CAC 40 Index4,5054,393112.002.553.53
Nikkei 225 (Japan)19,78319,262521.002.712.03
HKSE24,28023,831449.001.883.39
SSE Composite Index2,8152,8097.000.251.56
S&P/TSX Composite Index14,64214,420222.001.5415.40
NZ 5010,61010,419190.001.8311.02
US Volatility (Vix)33
Overseas Market Report

US sharemarkets rose on Monday as investors were buoyed by the possibility of a reopening of the economy after the virus outbreak. Several US states are beginning to allow restaurants and other establishments to serve customers. Retail and travel stocks lifted with Kohl’s (+17.7%), Gap (+12.9%), MGM Resorts (+9.3%) and Walt Disney (+4.8%) leading the way. Shares of Tesla rose by 10.2% on plans to call some workers back to its California vehicle assembly plant next week. The Dow Jones index rose by 358 points or 1.5%. The S&P500 index also rose by 1.5% and the Nasdaq index rose by 95 points or 1.1%.

Global oil prices fell on Monday after the United States Oil Fund (an ETF) said it would sell out of its June US Nymex futures position and move into later-dated contracts. The global oil market is also on track to test storage capacity within 3 weeks, according to Goldman Sachs analysts. The Brent crude price fell by US$1.45 or 6.8% to US$19.99 a barrel. The US Nymex price fell by US$4.16 or 24.6% to US$12.78 a barrel. 

Base metal prices mostly rose on the London Metal Exchange on Monday. Sentiment was boosted by news that Chinese province Yunnan will help local firms build stockpiles of metals. Tin (+3.9%) rose the most, but aluminium fell by 0.6%. 

The gold futures price fell by US$11.60 or 0.7% to US$1,711.90 an ounce. Spot gold was near US$1,714 an ounce in late US trade. Iron ore fell by US50 cents or 0.6% to US$83.40 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent19.9921.44-1.45-6.76-19.82
Oil - West Texas crude13.1212.780.342.66-39.01
Gold Spot $/OZ1,712.001,714.00-2.20-0.135.14
Silver Spot $/OZ15.2015.200.00-0.274.84
Iron Ore82.2082.80-0.60-0.762.73
Thermal Coal Newcastle50.5052.50-2.10-3.90-24.23
APAC Hard Coking Coal FOB116.00124.00-8.00-6.45-22.15
Aluminium ($US/t)1,4701,478-8.00-0.56-3.02
Copper ($US/lb)2.342.35-0.70-0.306.65
Lead ($US/t)1,6141,59420.001.22-4.72
Nickel ($US/t)12,17612,180-4.00-0.037.77
Zinc ($US/t)1,8941,87321.001.121.42
Tin ($US/t)15,56014,970590.003.948.70
Uranium ($US/lb)32.0032.000.000.4718.57
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords5,3885,30188.001.6510.55
S&P/ASX 2005,3215,24379.001.509.89
ASX 24 Futures5,313
Australian Market Report

Monday 27 April 2020 - close. The Australian share market has rallied on hopes that coronavirus lockdowns will be eased, even as banks weighed on the market following poor results by NAB. The S&P/ASX200 benchmark index finished Monday 78.8 points higher, or 1.5 per cent, at 5,321.4, while the All Ordinaries index rose 87.6 points, or 1.65 per cent, at 5,388.3. All sectors were higher except for energy, which was flat, and financials, which declined 0.15 per cent as institutional investors reshuffled their portfolios to participate in NAB's $3.5 billion capital raising. The bank also slashed its interim dividend and announced its half-year net profit was down by more than half. CBA shares were flat at $58.88 and NAB's were frozen, while ANZ dropped 2.3 per cent to $15.65 and Westpac fell 4.4 per cent to $14.66. But there was strength in the midcap and small cap space, said SG Hiscock Australian equities portfolio manager Hamish Tadgell. The ASX20 list of Australia's biggest 20 companies gained just 0.9 per cent while the Small Ordinaries index of Australia's 200th to 300th biggest companies gained 2.7 per cent.

Ashanti Headlines

Cobre Ltd: (CBE.ASX, 15.5 cps, m.cap A$15m with 96.8m SOI, Cash $10m, Base Metals Explorer)

  • Cobre agrees to acquire the 20% (free carried) minority stake in its 80%-owned subsidiary Toucan Gold Pty Ltd (Toucan), which is the 100% holder of the high-grade Perrinvale VHMS Project located in Western Australia. 
  • Consideration for the 20% stake in Toucan consists of a cash payment of $527,900 plus 6,160,000 CBE shares, with the final share purchase agreement to be completed by 30 June 2020. 
  • Subject to shareholder approval at the AGM later this year, CBE will also issue 1,550,000 new shares to the Company’s largest shareholder, Metal Tiger, at an issue price of $0.20 per share for $310,000 under a private placement. This will enable CBE to reduce its net cash outlay as part of the consideration for the Toucan stake to $217,900. 
  • Project Accretive acquisition for all existing shareholders leading into future exploration activities. 
  • Commenting on the binding LOI and proposed future share placement to Metal Tiger, Cobre’s Managing Director and Executive Chairman, Martin Holland said: “The Cobre Board believes the acquisition of the 20% minority shareholding in Toucan will create longterm value for the Company’s shareholders via 100% ownership and control of Toucan and the high-grade Perrinvale VHMS Project. The structure of the consideration allows Cobre to preserve its cash on hand for ongoing exploration activities, with the Vendors’ shareholding in Cobre expected to increase by less than 6% following the expanded shares on issue in Cobre at completion of the Transaction. The Board is also pleased with the support shown by Cobre’s largest shareholder, Metal Tiger, which has demonstrated its confidence in both the Company and the Perrinvale Project with their commitment to subscribe for additional CBE shares under the placement. We will continue to update shareholders on the progress of the Transaction as we work towards completion, as well as our ongoing exploration activities on the ground at Perrinvale.”
  • 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.

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