Market Update & Important Indicators
U.S. stocks advanced sharply on Thursday, sending the Nasdaq Composite and the Russell 2000 to record highs, while the main indexes recorded their third consecutive day of gains. The Nasdaq Composite gained 68.07 points, or 1.3% to 5,133.0, topping it previous record reached on May 19. The Russell 2000 rose 15.88 points, or 1.3% to 1,284.2, surpassing its record set April 15. The S&P 500 rose 20.80 points, or 1%, to 2,121.2, closing less than 10 points below its all-time closing high. The Dow Jones Industrial Average jumped 180.10 points, or 1%, to 18,116.
European shares bounced back from early declines Thursday as investors weighed the impasse in negotiations between Greece and its creditors against signals from the U.S. Federal Reserve that it will go slow with any interest-rate increases. The Stoxx Europe 600 closed 0.1% higher after touching a four-month low earlier in the session.
China's stock market slid Thursday, with highflying startup stocks suffering one of their worst days on record and analysts turning increasingly wary of what they see as a bubble in the country's equities. he Shanghai benchmark is now headed for its worst week of the year with a loss of 7.4% since last Friday, although it has rebounded since falling into correction territory in late May. Hong Kong's Hang Seng Index finished off 0.2%, while the Hang Seng China Enterprises Index, a gauge of Chinese companies listed in Hong Kong, fell 1.1%.
Metals on the LME were mixed with copper rising 0.2% to US$2.60/lb, while zinc fell 0.5% to US$0.94/lb. Gold rose 1.5% to US$1,202/oz and Brent gained 0.6% to US$64.26/bbl.
In This Issue
ABM Resources (ABU)
ABM Resources (ABU) announced first gold pour (gravity bar) from Old Pirate. The plant transitioned into a 24 hour operational basis and the commissioning of the CIL circuit is expected in the coming weeks. The progress on the plant is marginally slower than Argonaut anticipated. However, a seasoned team and demonstrated capabilities of the plant at processing similar material (from Coyote), significantly lowers commissioning risks. The stock is catalyst rich, with the commenced exploration program likely to demonstrate upside.
Pacific Energy (PEA)
The recent 14MW Thunderbox contract win takes KPS’s contracted capacity to 219MW and enhances PEA’s credentials in dual- and gas-fuelled power generation. With an attractive business model and visibility underpinned by contracted revenue, PEA is a stand-out in the tough mining services space. Anticipated earnings growth over the next two years supports our unchanged $0.60 valuation.
Argonaut’s Stock Coverage & Recommendations
Recent Contacts & Presentations
Western Areas (WSA), Panoramic Resources (PAN), Northern Star (NST), Regis (RRL), Medusa (MML), Pacific Energy (PEA), Orbital (OEC), Peet (PPC), Alexium (AJX), Austal (ASB), Empired (EPD), Rewardle (RXH), Saracen (SAR), Sino Gas & Energy (SEH), Dacian (DCN), Buru Energy (BRU), Carnarvon Energy (CVN), Otto Energy (OEL), Empire Oil & Gas (EGO), Pura Vida Energy NL (PVD), High Peak Royalties (HPR)
Please read Argonaut's Important Disclaimers & disclosures
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