Overseas Market Report – U.S. Stocks End Mixed as Oil Rises
U.S. stocks switched between small gains and losses on Monday as sharp gains in energy and materials stocks were offset by a drop in technology and consumer shares.
Oil prices rose on hopes that producers would cut supply to better meet demand.
The market was also focused on the European Central Bank's meeting on Thursday where the central bank is widely expected to further move rates below zero. The euro lost ground versus the dollar on the speculation.
At the close the Dow was up 0.4%, the S&P 500 had lifted 0.1% and the NASDAQ had fallen 0.2%.
Shares of Valeant (VRX) rose after the firm said it would report fourth-quarter results and provide updated guidance next week. The company is still grappling with questions around its relationship with specialty pharmacy Philidor and management had previously postponed results and announced it was under investigation from the SEC.
For Australian ADRs listed on the NYSE, BHP Billiton added $1.49 (5.38%) to $29.17, ResMed gained 25 cents (0.43%) to $58.10, Telstra Corporation added 7 cents (0.36%) to $19.09, Spark New Zealand lifted 9 cents (0.76%) to $11.97 and Westpac gained 48 cents (2.03%) to $24.12.
At 7:45 AM (AEDT), the 10-year Treasury note yield was 1.90% and the 5-year yield was 1.42%.
European shares finished mixed on Monday.
The FTSE 100 was down 0.3%, the French CAC 40 was up 0.6% and Germany's DAX was up 0.3%.
Asian markets were also mixed.
The Shanghai Composite was up 0.8%, the Hang Seng was down 0.1% and the Nikkei 225 was down 0.6%. India's Sensex lifted 0.2%.
Australian Market Report- Local Market Expected To Open Higher
Ahead of the local open, SPI futures were 32 points higher at 5,163.
Monday 7 March – close. The Australian market started the week on a high point and hovered well above the flat line throughout the day. A rally in commodity markets last Friday night encouraged local investors to pile into resource stocks, pushing the ASX 200 index to a two-month high. There were mixed results from the sectors; energy and materials gained significantly while healthcare lagged behind the rest. The Australian dollar appreciated against most major currencies.
The All Ordinaries rose 53.60 points to 5,204.70 while the S&P/ASX 200 lifted 52.80 points to 5,142.80.
In This Issue
Argonaut Research | Troy (TRY) | BUY
Troy Resources (TRY) announced an agreement with Austral Gold (AGD) to divest its interest in the Casposo mine in Argentina in stages, for a total amount of up to US$11m (see details below). The announced divestment is likely to provide upside to our modest valuation of A$4m for the asset and limits further downside on the operation. Importantly, this development will enable TRY to focus on the high margin Karouni mine in Guyana and potentially realise much greater value. Although the stock has performed strongly recently, Argonaut notes further upside includes the incorporation of over-reconciliation and regional exploration success. We increase our valuation to A$0.58 (was A$0.57) following the announced divestment.
CSL Limited (CSL)
CSL announced that the U.S. Food and Drug Administration (FDA) has approved IDELVION, its Behring's novel, long-acting albumin fusion protein linking recombinant coagulation factor IX with recombinant albumin for the treatment of haemophilia B. IDELVION is the first and only factor IX therapy that delivers high-level protection with up to 14-day dosing in appropriate patients. This dosing interval has been achieved while maintaining high levels of factor activity above 5% over 14 days at 75 IU/kg. This reduces the monthly number of units needed for prophylaxis therapy. IDELVION is expected to be available in the U.S. later in March 2016. CSL added 58 cents to $103.15.
APA Group (APA)
APA Group announced a recommended unconditional, all-cash, off-market takeover offer for Ethane Pipeline Income Fund (EPX) by Australian Pipelines as responsible entity of Australian Pipeline Trust. The Company currently owns 6.08% of EPX securities. The Offer is for all the EPX securities that the Company does not already own. Under the terms of the Offer, EPX securityholders will receive A$1.88 cash per EPX security. In addition, EPX securityholders will be entitled to retain the declared EPX distribution for the March 2016 quarter of 3.25c per EPX security if eligible on the distribution record date. The independent directors of EPX have unanimously agreed to recommend the Company's Offer in the absence of a superior offer and subject to an Independent Expert opining that the Offer is fair and reasonable. APA lost 2 cents to $8.47.
Recent Contacts & Presentations
Troy Resources (TRY), Northern Star Resources (NST), Regis Resources (RRL), Medusa Mining (MML), Doray Minerals (DRM), Beadell Resources (BDR), Red 5 (RED), Kingsgate Consolidated (KCN), OBJ (OBJ), Sino Gas & Energy Holdings (SEH), TFS Corporation (TFC), Paragon Care (PGC), Austal (ASB), Orbital Corporation (OEC),Energia Minerals (EMX), Berkeley Energia (BKY) , Finders Resources (FND), 4DS Memory Ltd (4DS) , Bionomics Ltd (BNO)
Please read Argonaut's Important Disclaimers & disclosures