Market Update & Important Indicators
Investors poured out of technology stocks Wednesday, spooked by disappointing results from Apple Inc. and Microsoft Corp. Investors scraping for growth amid the soft economic recovery had driven the Nasdaq to a record as recently as Monday, encouraged by solid results from Google Inc. and Netflix Inc. But Apple's 5% drop Wednesday was a reminder that expectations for technology companies have soared to the point that any disappointment can leave shares vulnerable. The Dow Junes lost 0.4% to 17,851, the S&P 500 lost 0.2% to 2,114 and the NASDAQ fell 0.7% to 5,172.
Australian equities fell for the first day in the last seven trading sessions, with bank and resources stocks leading a broad decline. Second-quarter inflation data released during the day that showed consumer prices rose 0.7% from the first and 1.5% from a year earlier, adding little weight to analyst arguments the central bank is poised to cut its key lending rate from an already record-low 2%. And in a speech, Reserve Bank of Australia Gov. Glenn Stevens said that while the prospect of further cuts in interest rates remained on the table, further cuts could invite financial instability. Commonwealth Bank of Australia Ltd. lost 1.7% for the day, while Westpac Banking Corp. dropped 1.6%, Australia & New Zealand Banking Group Ltd. slipped 1.5% and National Australia Bank Ltd. fell 1.4%. BHP Billiton Ltd. shed 2.1% after it forecast another increase in iron-ore output in the year ahead after production in the last financial year surpassed expectations. Fellow iron-ore producer Rio Tinto Ltd. dropped 2.3%, although smaller Fortescue Metals Group Ltd. gained 0.6% for the day.
Asian stocks traded mostly lower Wednesday, pulling back after several consecutive sessions of gains, following disappointing earnings results from U.S. tech and industrial heavyweights. China markets were a rare bright spot. The Shanghai Composite Index closed 0.2% higher at 4026.0, its fifth consecutive session of gains. The smaller Shenzhen Composite closed 1% higher at 2288.0.
Metals on the LME all finished lower. Copper fell 1.7% to US$2.42/lb, while nickel dropped 1.8% US$5.18. Gold dropped further to US$1,094 and Nrent lost 1.8% to US$56.03/bbl.
In This Issue
Transerv Energy Limited (TSV) | Warro 5 & 6 Drilling imminent | SPEC BUY
Transerv Energy Limited (TSV) is an Australian energy investment company with interests in Western Australia and Canada. The Company currently has a 57% interest, diluting to 35%, in the potential 3-4 Tcf Warro tight gas field in the Perth Basin (the largest undeveloped field in onshore Australia) and holds interests in several Canadian oil and gas opportunities including the emerging Montney Liquids Play in NE British Columbia.
The Enerdrill Rig-3 is currently drilling AWE’s Waitsia-2 well with Warro-5 & 6 the next two wells on the drilling schedule. TSV is fully carried on the drilling costs by Alcoa of Australia Limited (Alcoa) as part of its existing farm in agreement which began in 2008 when Alcoa agreed to a staged farm-in consisting of a multi well drilling program to earn up to a 65% interest (spending $100m minimum). To date Alcoa has earned 43% and spent $53m on two wells and the acquisition of seismic surveys. With the upcoming Warro 5 & 6 drilling campaign we anticipate Alcoa will increase its holding to 65%.
The Enerdrill Rig #3 is expected to mobilise to Warro during August 2015 after rig release from AWE, with drilling operations expected to commence late August/early September.
Recent Contacts & Presentations
Resolute (RSG), Rift Valley (RVY), Pacifico (PMY), Kingsgate (KCN), Troy (TRY), Tox Free Solutions (TOX), GR Engineering (GNG), Austal (ASB), Northern Star (NST), Sandfire (SFR), Regis (RRL), Saracen (SAR), Sino Gas & Energy (SEH), Dacian (DCN), Buru Energy (BRU), Carnarvon Petroleum (CVN), Otto Energy (OEL), Empire Oil & Gas (EGO), Pura Vida Energy NL (PVD), High Peak Royalties (HPR), Karoon Gas (KAR), Austex Oil (AOK), UIL Energy (UIL), Tlou Energy (TOU), FAR Limited (FAR), Cooper Energy (COE), Central Petroleum (CTP), Senex Enrgy (SXY)
Please read Argonaut's Important Disclaimers & disclosures
Log in to the client area below to download the full Morning Note PDF
