Market Update & Important Indicators:
The Dow Jones Industrial Average flirted with 20000 again Tuesday, a milestone it has never reached. Stocks jumped in early trading, sending the Dow industrials to roughly 19988 — a new intraday high. The blue-chip index was recently up 69 points, or 0.4%, at 19952. The S&P 500 added 0.2% and the Nasdaq Composite gained 0.3%. U.S. stocks have rallied for six weeks, bolstered by expectations that President-elect Donald Trump's policies would stoke growth and inflation, and loosen regulations on U.S. companies. Shares of financial and industrial companies have been among the biggest beneficiaries, helping lift the Dow industrials to several fresh records since Nov. 8. Stocks' post-election rally propelled the Dow industrials to their first close above 19000 on Nov. 22. It has also brought them close to 20000 multiple times: The blue-chip index has come within 50 points of the milestone on four occasions intraday, including Tuesday. The surge has left the Dow Jones Industrial Average on course to gain 15% for the year, while the S&P 500 has risen 11% and the Nasdaq Composite is up more than 9%.
European stock markets moved mostly higher, with Italian banks among the biggest gainers after news the country's government is preparing a bailout package for struggling lenders. The Stoxx Europe 600 index rose 0.5% to 361.32, closing at its highest level since December last year.
A positive outlook on the economies of the U.S., Germany and Japan helped Asian traders on Tuesday look past the fallout of the attacks in Berlin and Turkey. Japan's Nikkei Stock Average closed up 0.5%. Korea's Kospi added 0.2% with Hong Kong's Hang Seng Index losing 0.6%. Overnight, all three of the major U.S. stock indexes notched gains, with the S&P 500 rising 0.2%, the Dow Jones Industrial Average adding 0.2% and the Nasdaq Composite gaining 0.4%. The Bank of Japan on Tuesday raised its assessment of the economy for the first time since May 2015, closing a turbulent year on a positive note, but stood pat on monetary policy. The Japanese currency gained as much as 0.8% against the dollar Tuesday as traders sought it as a safe-haven currency. However, those gains largely unwound during the session, particularly following comments by Bank of Japan Governor Haruhiko Kuroda that showed support for, and a tolerance of, yen weakness.
Australian shares rose for a second day, pushing the market to its highest closing level for the year as banks led broad gains outside the resources sectors. Equity markets across the region were buoyed by a strong outlook on the U.S. economy from Federal Reserve Chairwoman Janet Yellen. The S&P/ASX 200 rose 29 points, or 0.5%, to 5591.1, the highest finish for the index since August 2015. The four largest banks, which are among the biggest stocks in the index, helped lift the financial sector 0.6%, adding to gains by consumer stocks, utilities and other areas. However, the basket of energy shares fell 0.4% after oil futures edged lower in Asian trade and big mining stocks lost ground following a drop in iron-ore prices.
The London Metal Exchange's three-month copper contract closed up 0.1% at $5,502/t. Other base metals also rose, with aluminium up 0.5% at $1,729/t, zinc up 1.1% at $2,617/t, nickel up 0.4% at $10,868/t and lead up 1.1% at $2,178/t. Tin bucked the trend, falling 1.3% to $21,030/t.
In this Issue:
Matrix (MCE) | Matrix reloaded | SPEC BUY
Market Cap $35m | Current Price $0.375 | Valuation $0.65
MCE entered FY17 with no term debt and an adjusted net cash position of $3.6m. This should allow the Company to ride out the very weak market in traditional buoyancy products, while looking to improve plant utilisation through new product and market diversification. The receipt of US$10.9m from a trade debtor would further strengthen the balance sheet and, given the operational leverage, suggests minimal revenue gains are required to underpin the resultant EV. We upgrade to Speculative Buy (prior Hold).
Recent Contacts & Presentations:
Davenport Resources Ltd (DAV), TFS Corporation Limited (TFC), Emmerson Resources Ltd (ERM), Syntonic Ltd (SYT), MZI Resources Ltd (MZI), Resolute Mining Ltd (RSG), Capricorn Metals Ltd (CMM), Eve Investments Ltd (EVE), Australian Mines Ltd (AUZ), Heron Resources Ltd (HRR), St George Mining Ltd (SGQ), Threat Protect Australia Ltd (TPS), Paringa Resources Ltd (PNL), The Gruden Group Ltd (GGL), Primary Gold Ltd (PGO), Vault Intelligence Ltd (VLT), Botanix Pharmaceuticals Ltd (BOT) Orthocell Ltd (OCC), Strandline Resources Ltd (STA) Dragontail Systems Ltd (DTS), ABM Resources Ltd (ABU), Acacia Coal Ltd (AJC), Troy Resources Ltd (TRY), Hazer Group Ltd (HZR)