The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. JUST IN....REGISTERED COMEX SILVER inventories just fell 10.3% to 27.6 million ounces - just US$626 mil worth of SILVER remains!!!....I'm getting a bit excited now....I truly think SILVER&PLATINUM will provide people with a way out of the rat race or to level up in this game of life we are all playing....If you have got any better ideas then I am all ears.
2. Aussie unemployment rate kicked up to 3.7%....24,200 lost full time jobs in July, 9600 gained part time work.....Is this the start of a nasty economic turn?
3. PAC Capital which manages about $400 million, has frozen redemptions from its managed funds....These are the same kind of things that I distinctly remember happening in the lead up to the GFC.
4. YanCoal announced it is paying a 37c dividend fully franked (ff). It goes EX on the 5th of September - meaning to be entitled to it, you need to own it by the 4th....YAL last paid 70c ff so for the year investors will end up receiving $1.07 which is about a 21% yield and becomes 29% grossed up for franking - this stock has been a great earner so far. BUY
5. Very disappointing seeing Core Lithium (CXO) come out with a $100 mil 40c capital raise as it was only a few weeks ago they were boasting to the market about having $152mil in the bank and no debt!....Management are obviously nervous about the lithium price and difficulties in executing their plans.... I put a BUY recommendation on the stock at $1.00 after falling from it's high of $1.86. Can't win them all....HOLD
ASX Market Update
ASX 200 down 49 points to 7146
Bit of a crappy day on the market with Core Lithium (CXO) having a shocker tanking 24% but....it wasn't all bad - on the positive Inghams (ING) rallied 14% after posting a very strong set of results. BUY last sale $3.19
Despite prices going up, Aussies are still going to be eating plenty of chicken - if anything consumption will increase as steak and lamb become out of reach for families.
Uranium prices are destined to go higher....BUY URNM
The Day Ahead
Reporting: ALK, MFG, LFS
- Our SPI is down 18 points
- Bitcoin down 4.3% to $27,858
Movements affecting our resource stocks today (USD)
- BHP in the US down 1%
- Newmont up 0.97%
- Gold down 0.5% to $1918
- Paper Silver up 0.82% to $22.72
- Platinum up 0.67% to $887
- Copper up 0.72% to $3.68
- Brent Crude up 0.48% to $83.85
- Iron ore up 4.4% to $105.25
Asian Market Update
Japan down 0.44%, China up 0.43%, Hong Kong FLAT
Looks like the TRADE WARS are building....Wonder what the Xi Man is going to hit them back with?
The Biden administration plans on Thursday to announce new tariffs on can-making metal imported from China, Germany, and Canada. Chinese products would be subject to the highest tariffs of the three countries—a levy of 122.52% of their import value.https://t.co/RVWxBKoz7J
— CN Wire (@Sino_Market) August 17, 2023
Global Market Update
DOW down 290 points to 34,474
US stocks rolled over again as profit taking in some of these global giants continues. Apple dropped 1.4%, Tesla fell 2.83% and Microsoft off 1.1%.
Germans down 0.71%, Brits fell 0.63% and Frenchies dropped 0.94%
Netherlands officially entered a recession as exports and household consumption fell.
Key Market Summary