Overseas Market Report – U.S. Stocks Eke Out Slight Gains
U.S. stocks traded slightly above the red line for most of Monday.
Trading volumes on Wall Street were lower than usual with most banks, federal institutions and the U.S. bond markets closed for the Columbus Day holiday.At the close the Dow was up 0.3%, the S&P 500 had gained 0.1% and the NASDAQ was up 0.2%.
For Australian ADRs listed on the NYSE, BHP Billiton slipped 72 cents (1.91%) to $37.04, ResMed gained 26 cents (0.48%) to $54.55, Telstra Corporation lost 6 cents (0.29%) to $20.45, Spark New Zealand remained unchanged at $10.20 and Westpac declined 7 cents (0.31%) to $22.41.
At 7:45 AM (AEDT), the 10-year Treasury note yield was 2.09% and the 5-year yield was 1.40%.
Shares of Eli Lilly and Co (LLY) fell after the pharmaceutical company said it is ending development of evacetrapib, its experimental drug for high-risk atherosclerotic cardiovascular disease, due to "insufficient efficacy" following late-stage clinical trials.
Shares of data storage company EMC Corp (EMC) were up after Dell Inc. and private-equity firm Silver Lake announced they will buy EMC for around $67 billion in cash and stock (roughly $33.15 a share).
European markets were mixed.
The FTSE 100 slipped 0.70%, while the French CAC 40 lost 0.3% and Germany's DAX gained 0.2%.
Asian shares were mostly higher.
The Shanghai Composite gained 3.3%, the Nikkei 225 was up 1.6% and the Hang Seng was up 1.2%. India's Sensex fell 0.7%.
Australian Market Report – Local Market Expected To Open Lower
Ahead of the local open, SPI futures were 43 points lower at 5,224.
Monday 12 October – close. The Australian market broke a five-day winning streak as local investors engaged in profit-taking after a week of gains. The big four banks and energy suppliers weighed heavily on the index, whilst positive results from gold miners were not enough to drive the market above the red line. All sectors experienced losses, with health care being the biggest laggard. The Australian dollar gained against most major currencies.
The All Ordinaries slid 41.80 points to 5,267.40 while the S&P/ASX 200 fell 46.80 points to 5,232.90.
Transurban Group (TCL)
Transurban Group announced its traffic and revenue data for the September quarter 2015, on a statutory basis, toll revenue increased by 17.0% to $427m when compared to the pcp. Proportional toll revenue, which the Company believes is the most accurate reflection of the portfolio's performance, increased by 18.9% from the pcp, to $446m. For the September quarter 2015, Sydney proportional toll revenue increased 16.0% to $187m. Average daily traffic (ADT) increased 10.3% to 622,000 trips. Melbourne toll revenue increased 6.7% to $153m. ADT increased 2.4% to 833,000 transactions. Brisbane proportional toll revenue increased 9.3% to $68m. ADT increased 10.5% to 332,000 trips and Northern Virginia toll revenue increased by 257.0% to US$28m. ADT increased 142.0% to 84,000 trips. TCL lost 5 cents to $9.81.
Cardno Limited (CDD)
Cardno announced it has approved implementation of the outcomes of a Strategic Review that will put the Company on track for a return to profitable growth with top quartile EBITDA margins. The approval follows the completion of a broad-ranging review of the Company's global operations conducted by the Company CEO and MD Richard Wankmuller. The priorities highlighted by the review are to Get the Company's financial house in order, Get the platform right and Focus investments in the right places. CDD dropped 5 cents to $2.95.
In This Issue – Argonaut Research
Doray Minerals (DRM) | BUY
Doray Minerals (DRM) announced production of 25.7koz during the September Q, beating Argonaut’s estimate of 24koz. The stronger than anticipated production is likely due to the high grade Wilber Stage 2 and Suzie open pits outperforming against the original mine plan on tonnage and inventory. Costs and cash flow items are expected in the full September Q report, due later this month. The Company recently released an updated Resource and Reserve statement. Whilst the mined ounces at Andy Well were largely replaced, Argonaut notes a decrease in grade at Wilber Underground from 8.2g/t to 5.7g/t, which results in a valuation downgrade from A$0.70 to A$0.63. BUY maintained. Going forward, a reinvigorated near mine and regional exploration program could provide catalysts in the near to medium term.
Recent Contacts & Presentations
Evolution Mining (EVN), Tox Free Solutions (TOX), AWE Limited (AWE), Ausdrill (ASL), GR Engineering (GNG), Medusa (MML), Resolute (RSG), Kingsgate (KCN), Troy (TRY), Northern Star (NST), Sandfire (SFR), Regis (RRL), Saracen (SAR), Sino Gas & Energy (SEH), Dacian (DCN), Buru Energy (BRU), Carnarvon Petroleum (CVN), Otto Energy (OEL), Empire Oil & Gas (EGO), FAR Limited (FAR), Central Petroleum (CTP), Senex Energy (SXY)