Market Update & Important Indicators
U.S. stocks closed higher on Monday, with the Dow Jones industrial average and S&P 500 ending at new records, as investors shook off earlier concerns about Greek debt and a renewed rise in bond yields. The Dow Jones industrial average set a record for the fifth time in 2015, closing at 18,299. The S&P 500 closed at a record for the third day in a row, its ninth for the year, passing its closing high set on Friday and finishing at 2,129.
European stocks ended a choppy session largely higher on Monday, as a fresh slide in the euro supported stocks in the region's major exporters. Germany's DAX, packed full of industrials and car makers that depend heavily on demand from beyond the Eurozone, ended the day just under 1.3% higher, spurring the Stoxx Europe 600 to a 0.4% rise.
Tokyo stocks rose Monday, nearing a three-week high, helped by a modestly stronger dollar and solid earnings from Japanese financial firms. The Nikkei Stock Average ended up 0.8% at 19890.3, following last week's 1.8% gain. The Shanghai Composite Index ended down 0.6% to finish at 4283.5, ahead of a wash of initial public offerings expected to soak up cash, and a more cautious investment sentiment after warnings by the securities watchdog over growing market risks.
Metals on the LME were down with the exception of tin which rose 0.8% to US$7.20/lb. Copper fell 0.7% to US$2.89/lb and nickel lost 1.65% to US$6.22/lb. Gold rose 0.2% to US$1226/oz, while Brent fell 0.8% to US$66.27/bbl.
In This Issue
Panoramic Resources (PAN) | BUY
Panoramic Resources (PAN) delivered the Feasibility Study for the Mt Henry Gold (70% PAN, 30% Matsa Resources). The project generates a lacklustre NPV8 of ~$40m at A$1,500/oz gold price incorporating $161m development capital. Argonaut believes the Company will look to divest or spin out its gold division upon completion of the expectant Gidgee Gold project Feasibility Study (due imminently). The market is attributing little value to PAN’s non-producing assets and the strongest levers for the Company’s share price are nickel price and mine life extension of nickel assets. Argonaut maintains a BUY recommendation with a revised target price of $0.78 (previously $0.82).
Recent Contacts & Presentations
Saracen (SAR), Kibaran (KNL), Sino Gas & Energy (SEH), Rewardle (RXH), Alexium (AJX), Ausdrill (ASL), Tox Free (TOX), OBJ Limited (OBJ), Cash Converters (CCV), Decmil (DCG), TFS Corporation (TFC), Mobile Embrace (MBE), Dacian (DCN), Saracen (SAR), Fertoz (FTZ), Atrum (ATU), Doray (DRM), Buru Energy (BRU), Carnarvon Energy (CVN), Otto Energy (OEL), Empire Oil & Gas (EGO), Pura Vida Energy NL (PVD), MZI Resources (MZI), High Peak Royalties (HPR), Spookfish (SFI), Mungana (MUX), Image Resources (IMA)