Market Update & Important Indicators
U.S. stocks closed lower Monday after two consecutive weeks of gains. The Dow Jones Industrial Average slipped 81 points, or 0.4%, to 17,977 and the S&P 500 index shed 10 points, or 0.5%, to 2,092.
European shares edged to new record highs Monday as central bank stimulus trumped signs of a slowdown in the Chinese economy. The Stoxx Europe 600 closed 0.2% higher, shrugging of early small declines in a quiet session. Markets had opened lower after data showing a slump in Chinese exports in March fanned concerns about growth in the world's second-largest economy, but picked up later in the session. The mining sector, which is highly sensitive to Chinese demand, was the worst performer, with resources companies on the Stoxx 600 down 0.9%. The U.K.'s mining-heavy FTSE 100 lost 0.4%.
Hong Kong's Hang Seng Index rose above the 28,000-mark for the first time in more than seven years on Monday, fuelled by expectations of more money from the mainland. The index rose for the eighth consecutive day, extending a rally that has put it up more than 14% in that period. Chinese companies trading in Hong Kong jumped 4.3% Monday, leading the Hang Seng Index 2.7% higher to 28,016. In economic news China's March exports slid 15% from a year earlier while imports dropped 12.7%.
On the LME overnight base metals were largely lower, with copper and nickel declining 0.9% and 1.8% respectively. Gold is trading 0.8% lower at $1,198/oz, however Brent crude was stable overnight at $57.93/bbl.
In This Issue
Gage Roads (GRB) | HOLD
The 3rd quarter delivered no improvement on the disappointing sales in the 1st half. With the plant operating at around half its capacity, we have downgraded FY15F sales volumes and now pencil in a 2nd half loss. In a weak earnings environment cash flow looks tight near term, and we need to be satisfied that this is turning around before considering a review of our cautious hold call. Our valuation slips to $0.10 (prior $0.12).
Recent Contacts & Presentations
Saracen (SAR), Beadell (BDR), Fertoz (FTZ), Atrum (ATU), Doray (DRM), Austal (ASB), TFS Corporation (TFC), Buru Energy (BRU), Carnarvon Energy (CVN), Otto Energy (OEL), Empire Oil & Gas (EGO), Pura Vida Energy NL (PVD), Migme (MIG), Vmoto (VMT), Pioneer Credit (PNC), Minemakers (MAK)
Please read Argonaut's Important Disclaimers & disclosures
Log in to the client area below to download the full Morning Note PDF