Market Update & Important Indicators:
U.S. stocks bounced between small gains and losses intraday, a day after waning concerns about trade tensions between the U.S. and China helped send major global indexes to their highest close in months. The Dow Jones Industrial Average fell 179 points, or 0.7%, to 24834, after rising Monday above 25,000 for the first time since March. The S&P 500 fell 0.3%, and the Nasdaq Composite added less than 0.1%. Six of the 11 sectors in the S&P 500 rose, led by shares in financials and telecom companies, which both rose 1.1%. The mixed tone in markets came after industrial companies rallied on Wall Street on Monday after Treasury Secretary Steven Mnuchin said the U.S. would suspend its efforts to apply tariffs to $150 billion in Chinese imports. The US gold price retreated 0.1% to 1,290.60 (US$/oz).
European stocks moved higher, with Italy remaining in focus as the country's president considered the candidate put forward by a euroskeptic alliance to lead their coalition government. The Stoxx Europe 600 index rose 0.3% to end at 396.94, its highest close since Jan. 29, according to FactSet data. Italy's FTSE MIB index moved 0.5% higher to 23,216.57, rebounding after falling 1.5% over the previous two trading sessions. The volatile trade in Italy came as the country's two biggest antiestablishment parties continued their push to form a governing coalition, which some fear could plunge Italy into a sovereign debt crisis. In Germany, the DAX 30 index added 0.7% to 13,169.92. The German market was closed on Monday in observance of Whit Monday. France's CAC 40 index ended 0.1% higher at 5,640.10, while the U.K.'s FTSE 100 index added 0.2% to score a record close at 7,877.45.
Many Asia Pacific stock markets weakened as the day progressed, giving the day a downbeat tenor after strong gains overnight in the U.S. and U.K. Indexes in Japan, Taiwan and the Philippines finished near session lows in logging modest declines for the day. But Chinese equities rallied into the close, once more led by small caps. Hong Kong and South Korea were dark for a holiday while Indonesia's index is leading with a 0.7% rebound from Monday's 11-month closing low. Stocks in Shanghai and Shenzhen inched higher, supported by news that the U.S. and China had agreed on an outline plan that would save imperiled Chinese telecom giant ZTE. Many markets in Asia were closed for a holiday. A rare dollar pullback helped pressure Japanese stocks. With the dollar pushing back below Y111, the Nikkei ended down 0.2% at 22960.34 and near session lows following an afternoon of slow, steady declines.
Australia stocks ticked up by the close but still logged a region-leading 0.7% drop. The S&P/ASX 200 fell by 42.60 to close at 6,041.90 — a three-week low.
Base metal prices were mixed for Tuesday on the London Metal Exchange. The 3-month copper contract gained 1.5% to 6,950/t, and lead rose 2.9% to 2,468/t. Aluminium fell 0.7% to 2,260/t, while the price of tin lost 0.9% to 20,580/t. The zinc price had a larger loss falling 1.6% to 3,050/t.
In this issue:
Myanmar Metals (MYL) | Resource upgrade, option exercised | SPEC BUY
Market Cap $37m | Current Price $0.06 | Target Price $0.25
Summer has been good to GRB, with a solid March quarter following the strong lead into Christmas. Own brand growth across all channels (independent bottle shops, national retailers and on-premise) demonstrates growing awareness of Gage Roads’ products. The events-based marketing strategy is working well, boosting confidence in the “return to craft” strategy. Our blended valuation climbs to $0.090 (prior $0.080) and we maintain a BUY call (upgraded yesterday) based on the expectation of margin and earnings growth in coming years, and the attractiveness of the craft beer segment of the liquor market.Sino
Sino Gas and Energy (SEH) |First Linxing ODP Approved| BUY
Market Cap $471m | Current Price $0.22 | Valuation $0.24 (Under Review)
SEH has received ODP approval for the Linxing PSC. This OPB covers 20% of the total discovered area, and any further development will be appended to the ODP as the phased development proceeds. CUCBM still needs to give final investment approval for the project, and this is expected mid-2019. SEH is in the process of deciding when to exercise its option to acquire 7.5% of SGE participating interest in the project. Argonaut maintains a BUY recommendation, but due to timing uncertainty, our $0.24/share target price is under review.
Recent Contacts & Presentations:
Catalyst Metals (CYL), Vault Intelligence (VLT), Doray Minerals (DRM), Nzuri Coppoer (NZC), Bowen Coking Coal (BCB), Phosphagenics Limited (POH) Great Boulder Resources (GBR), Orthocell (OCC), Northern Minerals (NTU), ABM Resources Ltd (ABU), Vital Metals Ltd (VML), Todd River Resources Ltd (TRT), Pacific Energy Ltd (PEA), Carnarvon Petroleum Ltd (CVN), Australian Mines Ltd (AUZ), Australian Finance Group (AFG), Paladin Energy Ltd (PDN), Cooper Energy Ltd (COE), Medibio Ltd (MEB), Botanix Pharmaceuticals Ltd (BOT), Salt Lake Potash Ltd (SO4), Golden Mile Resources Ltd (G88), NTM Gold Ltd (NTM), Ausmex Mining Group Ltd (AMG), Matrix C&E Ltd (MCE), Austal Ltd (ASB), Decmil Group Ltd (DCG), Ventnor Resources Ltd, Ausdrill Ltd (ASL), Alice Queen Ltd (AQX), PNX Metals Ltd (PNX), Alliance Resources Ltd (AGS), Myanmar Metals Ltd (MYL), Primary Gold Ltd (PGO), Sino Gas & Energy Holdings Ltd (SEH)