Market Update & Important Indicators:
U.S. stocks retreated broadly, with all 11 sectors in the S&P 500 falling. The day's moves put the index on course to close lower after rising in the previous three trading sessions. Some investors and analysts have said the 2017 stock rally could stall in the second half of the year, especially if borrowing costs rise but economic growth is mediocre. In recent weeks, government bond yields have climbed as central banks have signalled the end of monetary stimulus is coming. The Dow Jones Industrial Average shed 158 points or 0.7% to finish at 21,320. The S&P 500 fell 0.9% and the Nasdaq Composite shed 0.8%, pressured by declines in technology and biotech shares. Energy stocks, the worst-performing sector in the S&P 500 in 2017, fell 1.6%. Oil prices have weighed on shares of energy companies, pulling them down 15% in the S&P 500 so far this year. Consumer-discretionary shares lost 0.8% in the S&P 500. The U.S. gold price also lost ground overnight, shedding 0.1% to finish at 1,225.00 US$/oz.
European stocks ended firmly lower on Thursday, with minutes from the European Central Bank and Federal Reserve fuelling fears among traders that the era of ultra-loose monetary policy is coming to an end. The Stoxx Europe 600 index fell 0.7%, after notching a second straight day of gains on Wednesday. The FTSE 100 fell 0.4%, the French CAC dropped 0.5% and Germany’s DAX fell 0.6%.
Asian shares were lacking direction at the closing bell, as investors showed caution ahead of upcoming market-moving events, though India's benchmark Sensex index rose 0.4% to finish at yet another record. U.S. jobs data, worries about North Korea and the G-20 meeting Friday were key points of focus that market participants were awaiting. Still, few major indexes moved more than 0.4% in either direction. Japan's Nikkei Stock Average fell 0.4% after the yen strengthened against the dollar, pressuring the export-heavy index. Hong Kong's Hang Seng Index eased 0.2% even as index heavyweight Tencent inched higher, while the Shanghai Composite Index added 0.2%.
Australian shares inched lower Thursday as further losses by the major banks and energy companies countered pockets of buying in the market. The modest fall added to the previous decline and further eroded Tuesday's rally, the biggest single-day gain in eight months as financial stocks rebounded. After a choppy session, the S&P/ASX 200 finished down less than 0.1%. For the day, 2.19 billion shares were traded worth 5.4 billion Australian dollars (US$4.11 billion), Commonwealth Securities said. The four biggest banks, which carry a heavy weight in the index, declined by between 0.3% and 0.9%. Oil futures rebounded somewhat during Asian trading from sharp losses overnight on renewed worries about the global supply glut.
The London Metal Exchange's three-month copper contract rose 0.17% overnight to close at $5,851/t. The other base metals finished mostly higher. Aluminium prices rose 0.7% to 1,933/t, lead prices rose 0.5% to 2,265/t, tin prices rose 1.3% to 20,090/t whilst zinc prices jumped 0.1% to 2,783/t. Nickel prices bucked the trend falling 0.9% to finish at 9,037/t.
In this Issue:
CTI Logistics (CLX) | Patience will be rewarded | BUY
Market Cap $64m | Current Price $0.885 | Valuation $1.50
We believe we are currently witnessing the trough in CLX’s earnings. We have attempted to estimate reasonable mid-cycle WA revenue and earnings, and think CLX can generate group EBITDA of $21m+ in a more normal operating environment. An EV that is ~5x this number is undemanding, especially if we adjust for unused land at Hazelmere (we estimate worth ~$25m). Our buy call is based on significant value on a long term view.
Recent Contacts & Presentations:
Paringa Resources Ltd (PNL), Independence Group NL (IGO), MZI Resources Ltd (MZI), Transerv Energy Ltd (TSV), Emmerson Resources Ltd (ERM), Antipa Minerals Ltd (AZY), Echo Resources Ltd (EAR), Sovereign Metals Ltd (SVM), Calidus Resources Ltd (CAI), Great Boulder Resources Ltd (GBR), Finders Resources Ltd (FND), Bionomics Ltd (BNO), Threat Protect Australia Ltd (TPS), Ramelius Resources Ltd (RMS), Zenith Energy Ltd (ZEN), Blackham Resources Ltd (BLK), Top End Minerals Ltd (TND), Northern Star Resources Ltd (NST), Xanadu Mines Ltd (XAM), Dacian Gold (DCN), Egan Street Resources Ltd (EGA), Alice Queen Ltd (AQX)