Market Update & Important Indicators
Wall Street was closed on Friday for a public holiday.
Europe's main stock markets slipped with all eyes on Greece's weekend referendum on its bailout terms and future place in the eurozone. In the eurozone, the CAC 40 in Paris closed down 0.57 per cent to 4,808.22 points on Friday and Frankfurt's DAX 30 declined 0.37 per cent to 11,058.39 points amid the uncertainty over the outcome of the Greek referendum which the latest opinion polls say is too close to call. Outside the eurozone, London's benchmark FTSE 100 index of top companies fell 0.67 per cent to end the day at 6,585.78 points. The euro dropped below $US1.10 earlier before recovering slighting to $US1.1098 from $US1.1086 late in New York on Thursday.Asian markets mostly retreated ahead of the weekend's Greek referendum that could decide its eurozone future, with Shanghai plunging almost six per cent. Seoul on Friday dropped 0.14 per cent, or 2.92 points, to end at 2,104.41 and Sydney fell 61.5 points, or 1.1 per cent, to 5,538.3. Hong Kong fell 0.83 per cent, or 218.21 points, to 26,064.11. Shanghai tumbled 7.13 per cent at one point in the morning and Shenzhen slumped 6.96 per cent, with mainland markets pummelled by profit-taking and margin traders calling in their bets. Despite a mild recovery in early afternoon exchanges the two indexes closed sharply lower again. Shanghai slid 5.77 per cent, or 225.85 points, to 3,686.92, giving up 12.07 per cent since last Friday. Shenzhen sank 5.30 per cent, or 117.33 points, to 2,098.48 – losing 16.16 per cent over the week. However, Tokyo reversed morning losses to end marginally higher, adding 17.29 points to 20,539.79.
The S&P/NZX 50 Index edged back 0.58 points, or 0.01 per cent, to 5840.89.
The Australian market looks set to open lower with European markets slipping ahead of Greece's referendum on its bailout and future in the eurozone. At 0810 AEST on Monday, the September share price index futures contract was down seven points at 5,480. US markets were closed on Friday for a public holiday. In local economic news on Monday, the TD Securities-Melbourne Institute inflation gauge for June is due out as is the ANZ job advertisements series for the same month. No major equities news is expected. However, former Westpac Home Finance manager David St Pierre faces court over a $2.5 million fraud. In Australia, the market on Friday fell one per cent ahead of Greece's referendum on bailout conditions. The benchmark S&P/ASX200 index was down 61.5 points, or 1.1 per cent, at 5,538.3. The broader All Ordinaries index lost 59.9 points, or 1.07 per cent, at 5,528.0.
Base metals were down across the board on the LME overnight, with Lead and Nickel the biggest losers down 1.2% and 1.6% respectively. Gold slipped 0.2% to $1,166/oz, while Brent crude dipped 1.1% to $59.66/bbl.
In This Issue
Buru Energy Limited (BRU) | BUY | Grant of Production Licences for Ungani Oil Field
The Buru Energy/Mitsubishi Corporation Joint Venture has been granted the Production Licences for its Ungani oil field in WA’s Kimberley region. The grant of the two production licences covering the field follows the execution of Native Title Agreements with the Nyikina Mangala, Karajarri Yanja and Yawuru people. The production licences authorise the joint venture to produce oil from the Ungani field and will remain in force indefinitely, subject to the usual conditions applying to these types of licences, including the requirement to pay a net wellhead royalty to the State.
The field facility upgrades required for the start of commercial oil production are nearing completion, and the approval of the final documentation required by the Western Australia Department of Mines and Petroleum in WA (DMP) is also anticipated shortly, with the startup of production on track for mid-July. Buru Energy Executive Chairman, Eric Streitberg, thanked the Government and the Native Title parties for their support, saying that production from the field would deliver significant benefits to all stakeholders.
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