Market Update & Important Indicators:
Technology shares slid intraday, dragging down major U.S. stock indexes. The Dow Jones Industrial Average fell 168 points and the Nasdaq Composite declined 1.7%, putting the tech-heavy index on track for a third straight session with a swing of more than 1%. It was the latest bout of weakness in tech shares, which have swung major indexes this month. The Dow Jones Industrial Average fell 168 points, or 0.8%, to 21287 and the S&P 500 lost 0.9%. The U.S. gold price was lower overnight, trimming 0.3% to finish at 1,245.40 US$/oz.
European stocks ended with sharp losses, as a rally by the Euro reversed earlier optimism, hitting industrials, utilities and consumer shares. Even as shares of European banks and basic materials companies rose, boosted by the outcome of U.S. bank stress tests and a weaker U.S. dollar, respectively, key regional benchmarks failed to follow them higher. The Stoxx Europe 600 closed 1.3% lower at 380.66. Financials and basic materials were the best performing sectors, but the utility, industrials, consumer goods and services, and health care groups sold off. In Frankfurt, the export-heavy DAX 30 fell 1.8% to 12,416, with investors watching a leap in the euro above $1.14. In London, the FTSE 100 finished modestly lower, down 0.5% at 7,350.
Equity markets in Asia were higher, with finance stocks broadly leading gains after all major U.S. financial institutions received approval from the Federal Reserve to ramp up dividend payouts and share buybacks. Big banks boosted Hong Kong shares, helping the Hang Seng Index to a 0.9% gain at the midday break. In China, share gains were more modest, with brokers pointing to reduced liquidity, following the sixth consecutive session that the People's Bank of China has stopped liquidity injections to the market. The Shanghai Composite Index was up 0.3% in the morning session. Japan's Nikkei Stock Average was up 0.5% despite giving up some early gains on a stronger yen.
Banks and resources stocks led a second straight day of strong days for Australia's stock market, taking it to its highest finish in two weeks. Notching its sharpest rise in more than a fortnight, the S&P/ASX 200 picked up 62.4 points, or 1.1%, to close at 5818.1, near the session high. The four largest banks collectively added about 26 points. Energy and materials stocks, as well as information technology shares, also contributed strong gains. Chinese iron-ore futures extended gains of late that have followed steel-mill closures and high demand for restocking of the commodity, while crude oil also continued to climb in Asian trading, buoyed by a decline in U.S. output.
The London Metal Exchange's three-month copper contract rose 1% Thursday to close at $5,940/t. All other base metals finished higher. Aluminium prices rose 1.0% to 1,911/t, lead prices rose 0.6% to 2,298/t, nickel prices rose 0.3% to 9,252t, tin prices rose 3.7% to 20,295/t, whilst zinc prices jumped 0.8% to 2,756/t.
In this Issue:
Matrix (MCE) | Staying Afloat | HOLD
Market Cap $37m | Current Price $0.39 | Valuation $0.43
Offshore oil and gas remains a tough market given low oil prices and the rise of shale producers. This has meant very poor sales for MCE in its traditional riser buoyancy market, leading to Company guidance for an anaemic $9m revenue for 2H17. This has caused management to look to diversify the business away from riser buoyancy to better task the composites manufacturing facility in Henderson. Whilst some success has been had in initial diversified products, we believe it will take time to penetrate new markets. The level of uncertainty is reflected in our HOLD call on a revised $0.43 valuation (previously $0.62).
Recent Contacts & Presentations:
Emmerson Resources Ltd (ERM), Antipa Minerals Ltd (AZY), Echo Resources Ltd (EAR), Sovereign Metals Ltd (SVM), Calidus Resources Ltd (CAI), Great Boulder Resources Ltd (GBR), Finders Resources Ltd (FND), Bionomics Ltd (BNO), Threat Protect Australia Ltd (TPS), Ramelius Resources Ltd (RMS), Zenith Energy Ltd (ZEN), Blackham Resources Ltd (BLK), Top End Minerals Ltd (TND), Northern Star Resources Ltd (NST), Xanadu Mines Ltd (XAM), Dacian Gold (DCN), Egan Street Resources Ltd (EGA), Alice Queen Ltd (AQX), Paringa Resources Ltd (PNL), AWE Limited (AWE), Saracen Mineral Holdings Ltd (SAR), Red River Resources Ltd (RVR), Vital Metals Ltd (VML)