Morning Notes

26/09/2017 Argonaut Morning Note

Market Update & Important Indicators
Major U.S. stock indexes fell Monday, weighed down by losses in shares of technology companies. Stocks that have helped lead the market higher this year, including Facebook and several chip-makers, were among the day's biggest decliners. Some traders also attributed Monday's slide in major U.S. stock indexes to comments from North Korea's foreign minister, who said Monday that President Donald Trump's latest comments on the country constituted a declaration of war. An exchange of threats between North Korea and the U.S. has pressured major indexes and sent assets considered havens like gold and government bonds higher a few times over the summer. The stock market has largely been quiet in recent weeks, with major indexes sticking to a narrow range and trading volumes mostly hovering below their averages for the year. The Dow Jones Industrial Average fell 0.3%. The S&P 500 lost 0.3% and the Nasdaq Composite slipped 1.1%. Technology stocks fell Monday, with Facebook shedding 4.6%, among the biggest decliners in the S&P 500 technology sector and the broader index. Meanwhile, shares of energy companies rose with oil prices. The S&P 500 energy sector added 1.6% overnight. The U.S. gold price traded higher overnight, bouncing 1.0% to close at 1,2310.30 US$/oz.

European stocks ticked slightly higher Monday as investors digested the outcome of Germany's general election, which delivered a win for Chancellor Angela Merkel's conservative alliance but signaled potential turbulence ahead. The Stoxx Europe 600 index added 0.2% to close at 383.90. On Friday, the index ended up by 0.1% and marked a weekly advance of 0.7%. German stocks reached for a small gain. In Frankfurt, the DAX 30 closed marginally higher at 12,594.81, but had opened in the red. The victory of Merkel's center-right bloc over the center-left Social Democrats all but assures a fourth term for the Chancellor.

Asian stock markets finished mostly down, with Hong Kong's Hang Seng Index off 1.4% as property developers slid, hit by a widening set of measures from Beijing to control home prices. The stock benchmark in Taiwan, home to many Apple suppliers, was off 1.1% following Friday's 1.2% drop. South Korea's Kospi was also down 0.4%. Japanese stocks were outperformers, helped by weaker currencies. Japan's Nikkei Stock Average closed up 0.5%, with a softer yen boosting the export-heavy market.

Australian stocks outperformed throughout today's trading, but afternoon selling briefly sent the market lower and resulted in a flat finish. The S&P/ASX 200 ended up 1.6 points at 5683.7, held back by a 1.1% drop in Commonwealth Bank following early strength. The beaten-up stock had been rebounding of late, but with today's drop is flat for September. Rio Tinto also pulled back; after early 1%+ gains it finished up just 0.1%.

The London Metal Exchange’s 3-month copper contract traded lower overnight, losing 0.11% to finish at $6,450/t. The other base metals finished mixed. Nickel prices rebounded 1.4% to 10,491/t, while aluminium prices lost 0.5% to close at 2,125/t. Lead prices fell 0.6% to close at 2,472/t, whilst Zinc prices were strongest, adding 2.8% to 3,163/t. Tin prices were higher again overnight, gaining 0.9% to finish at 20,925/t.

In this issue
Gage Roads (GRB) | Name in lights | BUY
Market Cap $62m | Current Price $0.072 | Valuation $0.078

Effective January 2018, GRB has been awarded an exclusive beer and cider supply contract with the new Perth Stadium, a deal which will ensure exceptional brand and product exposure. Meeting strategic goals requires quality product and sound marketing; in our view ongoing awards and significant new deals tick these boxes and reduce execution risk. We maintain a buy call on a revised valuation of $0.078 (prior $0.066).

Recent Contacts & Presentations
MZI Resources Ltd (MZI), Gascoyne Resources ltd (GCY), NTM Gold Ltd (NTM), Novo Resources Ltd (NVO:TSX), Alice Queen Ltd (AQX), Melbana Energy Ltd (MAY), TOX Free Solutions Ltd (TOX), Artemis Resources Ltd (ARV), Apollo Consolidated Ltd (AOP), Vault Intelligence Ltd (VLT), Fleetwood Corp Ltd (FWD), DTI Group Ltd (DTI), Calima Energy Ltd (CE1), Austal Ltd (ASB), Indoor Skydive Australia (IDZ), OZ Minerals Ltd (OZL), NorWest Energy Ltd (NEW), Berkut Minerals Ltd (BMT), Draig Resources Ltd (DRG), Minotaur Exploration Ltd (MEP), Ausdrill Ltd (ASL), Neometals Ltd (NMT), PNX Metals Ltd (PNX), Northern Minerals Ltd (NTU), New Century Zinc Ltd (NCZ), Metal Bank Ltd (MBK), Rift Valley Resources Ltd (RVY), Panoramic Resources Ltd (PAN)

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