Market Update & Important Indicators
Wall Street have stocks surged after the Labour Department reported the US economy added a solid 223,000 jobs in April and unemployment fell to a seven-year low of 5.4 per cent. At the closing bell on Friday, the Dow Jones Industrial Average had powered 267.05 points (1.49 per cent) higher to 18,191.11. The broad-based S&P 500 jumped 28.10 (1.35 per cent) to 2,116.10, while the tech-rich Nasdaq Composite Index gained 58.00 (1.17 per cent) at 5,003.55. The April labour data marked a big improvement from March, when the US added just 85,000 jobs. At the same time the US labour market showed some signs of weakness, with wages barely growing and underemployment still elevated. Many economists said the jobs data suggested the Fed likely would wait until September or later in its plan to lift the near-zero federal funds rate this year. The equity gains were broad-based, with all 30 members of the Dow finishing in the green.
London's stock market have rallied and the pound surged as Prime Minister David Cameron's "business-friendly" Conservatives scored a surprise victory in Britain's general election. Most other European indices also shot up on Friday as US job creation figures, while solid, were viewed by the market as not being strong enough for the US Federal Reserve to begin raising interest rates next year. The benchmark FTSE 100 index jumped 2.32 per cent to close at 7,046.82 points, lifted by soaring share price gains for banks and energy majors. The outcome sent the British pound soaring to $US1.5462 from $US1.5262 late in New York on Thursday. The euro was down at 72.73 pence from 73.82 pence. The CAC 40 in Paris gained 2.48 per cent to close at 5,090.39 points, while the DAX 30 in Frankfurt soared 2.65 per cent to 11,709.73 points. Madrid climbed 2.19 per cent and Milan rose 2.06 per cent.
Asian stock markets were broadly higher, but some leading indexes surrendered gains as investors eyed a US jobs report that will supply more clues about the strength of the world's top economy. Tokyo's benchmark Nikkei index on Friday rose 87.20 points, or 0.45 per cent, to end at 19,379.19, and Hong Kong added 1.05 per cent, or 287.37 points, to close at 27,577.34. "But if the data is worse than expected, we could see global stocks suffer a deeper correction as the market shifts toward a deflationary story." Chinese shares benefited from hopes for policies to boost the economy after China posted weaker-than-expected trade data, dealers said. Shanghai was the star gainer after a week of heavy losses, finishing up 2.28 per cent, or 93.71 points, to 4,205.92. Despite the gains, the index lost 5.31 per cent over the week. The Shenzhen Composite Index, which tracks stocks on China's second exchange, surged 4.17 per cent, or 90.87 points, to 2,272.17 on turnover of 512.9 billion yuan. It gained 0.19 per cent for the week.
The benchmark S&P/ASX200 index was down 11.1 points, or 0.2 per cent, at 5,634.6. The broader All Ordinaries index was down 9.4 points, or 0.17 per cent, at 5,635.The Australian market looks set to open higher, following gains on Wall Street on Friday. The June share price index futures contract was up 43 points at 5,645. Locally on Monday, the National Australia Bank releases its monthly business survey and in equities news The market on Friday was weaker for a third straight day after the Reserve Bank's monetary policy statement took the shine off banking stocks and falling crude oil prices belted energy stocks
Brent fell slightly, 0.1% to US$65.34/bbl. Metals on the LME were generally down with Lead and Zinc posting the biggest losses, down 2.0% and 1.0% respectively with Nickel up 1.1%. Gold was up, rising 0.3% to US$1184.5/oz. Iron ore fines rose 1.7% to US$61.4/t.
In This Issue
High Peak Royalties (HPR) | Surat Basin Royalties Underpin Value | BUY
High Peak Royalties (HPR) has royalty interests in 24 oil and gas projects in Australia, Seychelles and the United States. The Company’s key assets are its overriding royalty interests (ORRI) over coal seam gas (CSG) permits PL 171 and ATP 574 earmarked for the QCLNG project located on Curtis Island, Queensland.
The royalty model adopted by HPR enables it to hold a portfolio across exploration, pre-production and producing projects benefiting from project revenue (currently 5 projects are in production) without the requisite capital and operational cost obligations. HRP has minimal overhead costs and is supported by an experienced management team who continue to seek further royalty and growth opportunities. BUY, Target price $0.32/ps.
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