Market Update & Important Indicators
U.S. stocks climbed Wednesday, supported by a bounce back in retail shares. The Dow Jones Industrial Average rose 43 points, or 0.2%, to 22042, on pace for a fourth straight session of gains. The S&P 500 gained 0.2%, and the Nasdaq Composite advanced 0.3%. Stocks extended gains slightly after minutes from the Federal Reserve's latest meeting showed officials were split about the timing of future interest rate increases. Some of the session's biggest moves came from brick-and-mortar stores, a day after they were among the worst performers in the S&P 500. Stocks pared gains slightly after two of President Donald Trump's councils of top business leaders disbanded. Although the development could hurt expectations about the Trump administration enacting corporate-friendly policies, many investors already don't expect such policies to go through and support markets. The U.S. gold price gained overnight, adding 0.4% to finish at 1,282.80 US$/oz.
European stocks pushed higher Wednesday, with stocks continuing to recover after the flare-up in tensions between the U.S. and North Korea and big exporters getting a boost from a weaker euro. The Stoxx Europe 600 index picked up 0.7% to close at 379.09, logging a third straight day of gains. Miners were also among biggest advances, rising alongside a jump in zinc and copper prices. Copper futures were up nearly 3% and zinc futures surpassed $3,000 a metric ton for the first time since 2007.
Equities were broadly higher in Asia, as short positions over tensions in the Korean Peninsula unwound. However, caution remains ahead of joint U.S.-South Korean military exercises next week, analysts say. Stock benchmarks in China, South Korea and Hong Kong were up so far this week, as investors found value in high-growth stocks following last week's pullback, which many analysts believed was overdue. The Shanghai Composite Index pared early losses to trade 0.2% lower, with large caps succumbing to selling pressure after recent gains. Stocks were higher in Hong Kong, with the Hang Seng Index up 0.9%.The South Korean Kospi outperformed as traders returned from a public holiday to catch up with the region's earlier gains. The benchmark index was up 0.6% after opening about 1% higher. In Hong Kong, improved risk-taking appetite prompted strong buying among Chinese banking and casino gambling stocks. In Japan, the Nikkei Stock Average edged lower 0.1%, even as the U.S. dollar was up 0.2% against the yen.
Australian shares shook off early selling to finish at session high, notching a 3rd-straight gains in the process. Earnings took center stage, and energy firms Origin and Woodside jumped 5.4% and 2.6%, respectively. That sector's gains helped push the S&P/ASX 200 up 0.5% at 5785.1, putting the week's rebound at 1.6%. Amid other earnings movers, Iluka rose 1.1% and Fairfax added 0.5% while Computershare dropped 3.3% and CSL lost 1.5%.
The London Metal Exchange's three-month copper contract jumped higher overnight, gaining 2.4% to $6,532/t. Most other base metals finished strongly higher following a wave of speculative buying, anticipating stronger global demand. Aluminium prices gained 2.2% to 2,100/t, whilst lead prices added 5.8% to 2,498/t. Tin prices fell 0.6% to 20,135/t, whereas zinc prices spiked 5.5% to 3,108/t – the first time above $3,000/t since 2007. Nickel prices were also stronger, adding 4.0% to finish at 10,707/t.
In this issue
Botanix (BOT) | Clearing Regulatory Hurdles | SPEC BUY
Market Cap $28m | Current Price $0.053 | Valuation $0.080
BOT has made significant progress since listing 12 months ago, and importantly de-risked its pipeline of products through successful Phase 1 safety trials for its lead candidate product (BTX 1503). An expanded portfolio adds to BOT’s investment appeal and diversifies risks associated with the FDA approval process. Substantial news flow in 2H CY2017 should drive further value. We have valued BOT shares for the first time with a current valuation of 8 cents per share, underpinning our SPEC BUY call.
Recent Contacts & Presentations
New Century Zinc Ltd (NCZ), Metal Bank Ltd (MBK), Rift Valley Resources Ltd (RVY), Panoramic Resources Ltd (PAN), Doray Minerals Ltd (DRM), Wellard Limited (WLD), Bryah Resources Ltd (BYH), Auris Minerals Ltd (AUR), Gage Roads Brewing Co Ltd (GRB), Stavely Minerals Ltd (SVY), Orbital Corporation Ltd (OEC), 4DS Memory Ltd (4DS), Kin Mining NL (KIN), Pharmaust Limited (PAA), Botanix Pharmaceuticals Ltd (BOT), Dimerix Ltd (DXB), Metro Mining Ltd (MMI), Paringa Resources Ltd (PNL), Independence Group NL (IGO), MZI Resources Ltd (MZI), Transerv Energy Ltd (TSV), Emmerson Resources Ltd (ERM), Antipa Minerals Ltd (AZY), Echo Resources Ltd (EAR), Sovereign Metals Ltd (SVM)
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