Morning Notes

07/06/2018 - Argonaut Morning Note

Market Update & Important Indicators:

The Dow Jones Industrial Average headed toward its highest close in nearly three months Wednesday, with markets calm as investors weighed the latest signals on international trade. Stocks have risen lately despite worries that protectionist policies could slow trade and weaken the global economy, damping growth and hurting markets. Some investors still believe trade compromises between the U.S. and other countries, including China, will eventually resolve the conflicts. China has offered to purchase nearly $70 billion of U.S. farm, manufacturing and energy products if the Trump administration abandons threatened tariffs, The Wall Street Journal reported Tuesday. Trade tensions and political uncertainty surrounding Italy and other countries remain threats to the market rally, but some analysts still think strong earnings and favourable growth in the U.S. can power major indexes higher. The Dow industrials added 1.4%, to 25146. The S&P 500 rose 0.9% after a recent resurgence in tech stocks helped the index notch a third straight session of advances Tuesday, while the Nasdaq Composite edged up 0.3% and was on track for a fresh record. The US Gold price was steady at 1,295.90 US$/oz.

The Stoxx Europe 600 index ended flat at 386.88 after European Central Bank Chief Economist Peter Praet suggested the bank could decide as soon as next week to wind down quantitative easing despite troubles in Italy. Gains in the euro after those comments also weighed down stocks, while investors remained wary about an uncertain outlook for Italian stocks. Still, this was offset by gains in mining stocks due to rises in base metal prices. Regionally, France's CAC 40 ended down 0.1%, and Germany's DAX and the U.K.'s FTSE 100 both ended up 0.3%. Italy's FTSE MIB ended up 0.3% and Spain's Ibex 35 outperformed, closing up 1.1%.

Stocks in Japan and Hong Kong edged up 0.4% and 0.5%, respectively. Energy and mining companies drove most of the advance in Asia on Wednesday as oil and metals prices rose. Focus later Wednesday was expected to turn to the U.S. Commerce Department's release of international trade data for April as trade tensions have driven swings in stock markets in recent weeks.

Commodity-price rebounded buoyed Australian stocks as the country's equities market rose broadly after yesterday's underperformance. The S&P/ASX 200 advanced 0.5% to 6025.1 as energy stocks jumped 2.4% and materials climbed 1.6%. Heavyweights BHP Billiton and Rio Tinto respectively rose 2% and 2.5%. But financials dropped 0.8% as CBA retreated 1.7%, erasing much of this week's rebound following its government settlement. Australia's major lenders stumbled amid continued concerns about rising headwinds and regulatory scrutiny. 

Base metal prices were mixed on the London Metal Exchange. The aluminium price gained 1.4% to 2,342/t and the 3-month copper contract rose by 1.6% to 7,211/t. Tin increased 1.7% to 21,060/t, while the price of lead gained 0.4% to 2,519/t. Negative movers were nickel that fell 0.8% to 15,570/t and zinc that dipped 0.2% to 3,213/t.

In this issue:

Botanix (BOT) |BOT announces successful Atopic Dermatitis (AD) Study Results

Market Cap $94.5m | Current Price $0.145 | Valuation $0.20

BOT has successfully completed a randomised, double-blind vehicle (placebo) controlled Phase 1b atopic dermatitis study of its topical treatment BTX1204. Based on the results of the study and ongoing success BOT is achieving with its other formulations we maintain our Speculative Buy recommendation and a $0.20 valuation.

Orthocell (OCC) | OCC announces successful interim tendon study result

Market Cap $29mm | Current Price $0.0.37

OCC announces successful tendon study result. These are preliminary results from patients who suffer from rotator cuff injuries and need corrective surgery.Based on the successful results of the study and the recent successes with Celgro © in penetrating the European market we maintain our Speculative Buy recommendation.

Recent Contacts & Presentations:

Bio–Gene Technology (BGT), Walkabout Resources (WKT), Triton Minerals (TON), Calima Energy (CE1), Peel Mining (PEX), 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)

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