Market Update & Important Indicators
A stronger-than-expected pickup in U.S. hiring helped lift major indexes to weekly gains on Friday, capping a choppy streak for the stock market. Stocks swung in the past week as investors parsed the Republican tax overhaul plan searching for potential winners and losers. Technology shares initially tumbled as many analysts viewed the sector as less likely to benefit from a corporate tax cut. At the same time, financial companies rose as they currently pay a relatively high average tax rate. Those moves stabilized as the week came to a close, and both sectors rose Friday after a November jobs report that suggested economic growth in the U.S. remains on the upswing, supporting stock prices. The S&P 500 tech sector ended the week up 0.1% while financials closed the week up 1.5%. The Dow Jones Industrial Average rose 117.68 points, or 0.5%, to 24329.16 on Friday, while the S&P 500 added 14.52 points, or 0.6%, to 2651.50 and the Nasdaq Composite gained 27.24 points, or 0.4%, to 6840.08, as tech stocks continued to bounce back from losses earlier in the week. U.S. employers added 228,000 jobs in November, while the unemployment rate remained at 4.1%, according to the Labor Department. The U.S. gold price traded higher overnight, adding 0.1% to close at 1,248.20 US$/oz.
European stocks rose Friday, scoring their highest close in a month, after the U.K. and the European Union came to terms on a Brexit divorce deal, opening the way to a key phase of talks. The Stoxx Europe 600 popped up 0.7% to close at 389.25, logging its highest close since Nov. 9, according to FactSet data. For the week, the Stoxx 600 scored a 1.4% gain, following last week's fall of 0.7%. In Frankfurt on Friday, the DAX 30 index jumped 0.8% to 13,153.70, and in Paris, the CAC 40 gained 0.3% to 5,399.09. Spain's IBEX 35 leapt 0.6% to 10,321.10. The U.K.'s FTSE 100 ended up 1% at 7,393.96, propelled higher by a drop in the pound.
Asia-Pacific equities ended the week on an up note, setting an optimistic tone for the rest of the globe's Friday trading ahead of the U.S. jobs report. Markets in the region reversed much of their remaining declines of the week, with indexes in Japan, Hong Kong, Shenzhen and Singapore all up at least 1% and several others not far behind. In stocks, Japan led the region for a second day, rallying 1.4%. That left the Nikkei down just 0.03%, still enough for the index to log its second weekly decline in the past three months. South Korea's Kospi only rose 0.1%, and Taiwan's Taiex gained 0.4% on another session of support from financials.
After a jump at the start of the session, Australia’s Stock benchmark settled back and then moved in a tight range the rest of the day, ending the week with modest gains. The S&P/ASX 200 rose 0.3% to 5994.4, resulting in a 2nd-straight 0.1% weekly gain for the index. It's up for 8 of the past 10, during which the benchmark reached 10-year highs. A highlight was Macquarie, which gained 1.9% to erase the week's drop amid upbeat commentary from a resolute bull on the financial firm's stock.
The London Metal Exchange’s 3-month copper contract traded higher overnight, gaining 0.1% to finish at $6,571/t. The other base metals finished mixed. Aluminium prices closed flat at 1,992/t, whilst Lead prices gained 0.7% to close at 2,447/t. Zinc prices traded 0.3% lower, closing at 3,090/t, whilst Nickel prices fell 0.9% to 10,891/t. Tin prices closed 0.1% higher at 19,522/t.
In this issue
Independence Group (IGO) | Long Island, Long Life | HOLD
Market Cap $2,377m | Current Share Price $3.97 | Target Price $3.80
The Tropicana JV (AngloGold Ashanti 70%, Independence Group [IGO] 30%) have agreed to Phase 1 of the Long Island strategy which includes mining the Havana South pit and a cut-back of the Boston Shaker pit. In addition, the JV has approved the instillation of a ball mill which will lift plant throughput to 8.1Mtpa (from 7.6Mtpa) and improve gold recoveries to 92% (from 89%). Capex for Long Island is estimated at A$18m and the new mill will cost A$28m (100% basis). The complete Long Island study will extend the mine life out to 2027 and adds 2.1Moz to the Tropicana business plan. Underground mining of deeper mineralisation at Boston Shaker is also being considered and a PFS will be undertaken in 2018. Upgrade to HOLD from SELL and maintain a $3.80 target price.
Recent Contacts & Presentations
Walkabout Resources Ltd (WKT), Marindi Metals Ltd (MZN), Volt Power Group Ltd (VPR), PharmAust Ltd (PAA), Alice Queen Ltd (AQX), Jervois Mining Ltd (JRV), St George Mining Ltd (SGQ), Overland Resources Ltd (OVR), Metro Mining Ltd (MMI), Botanix Pharmaceuticals Ltd (BOT), Xanadu Mines Ltd (XAM), Orthocell Ltd (OCC), Whitebark Energy Ltd (WBE), Atrum Coal Ltd (ATU), Minotaur Exploration Ltd (MEP), Panoramic Resources Ltd (PAN), Sino Gas & Energy Holdings Ltd (SEH), Great Boulder Resources Ltd (GBR), Metallum Ltd (MNE), Gold Road Resources Ltd (GOR), Apollo Consolidated Ltd (AOP), De Grey Mining Ltd (DEG), Triton Minerals Ltd (TON), Evolution Mining Ltd (EVN), Silver Mines Ltd (SVL), NTM Gold Ltd (NTM)