|
Today’s edition features:
Visit Company News »
"In the wake of the presumed terrorist attack in Manchester, stock markets across Asia ended mixed in early morning trading. Haven investments, like Gold and the Yen, were just marginally firmer. Korea’s Kospi gained 0.9% to a fresh intraday record and Singapore’s Straits Times Index gained 0.5% having been lower for each of the past five sessions, while the Nikkei, S&P/ASX 200 and Shanghai Composite all closed marginally weaker. US stocks by contrast sustained the trend set on Thursday and Friday with a further upward move yesterday evening. The three principal indices have now recovered nearly all of last Wednesday’s setback, with traders celebrating the President’s successful visit to Saudi Arabia. Various individual stocks shone on the back of major contract news including, not surprisingly, defence stocks like General Dynamics, Raytheon and Lockheed Martin and others, such as Blackstone Group, which moved sharply higher after the private equity firm and the Arab state’s Public Investment Fund announced the joint launch of a USD40 billion investment vehicle to finance infrastructure renovation in the US. Beyond this, however, a lack of major US economic data kept many traders on the sidelines, although what focus there was centred on technology shares with Networking, Telecom, Semiconductor and Software sectors dominating the gains and ensuring the NASDAQ chalked up Wall Street’s largest advance. US government bonds pulled back overnight with the benchmark 10-year Treasury note settling at 2.254%, compared with 2.243% Friday, following its biggest weekly price gains in more than a month, as Libor hit an 8-Year high on resumed confidence of a June Fed-rate hike. Ahead of Thursday’s OPEC meeting in Vienna, oil prices dipped slightly in Asia, having hit their highest level in a month during the U.S. session. While the FTSE-100 Index climbed by 0.3% yesterday, supported by firmer minerals prices, the war of words on Brexit continues; in an interview with the Sunday Times, for example, Brexit Minister David Davis reiterated the UK government’s willingness to walk away from negotiations without any deal, while rejecting the demand of EUR100 billion in settlement for the UK’s exit from the European Union. The Euro, however, had been boosted by comments from German Chancellor Angela Merkel and speculation that the ECB’s Mario Draghi may shortly be forced to take decisive action; the Xetra DAX Index accordingly edged down by 0.2% and the French CAC 40 Index closed just below the unchanged line, leaving the pan-European Stoxx Europe 600 index unchanged on the day. Not that tension will be relieved any time soon; the EU has now completed preparations to begin talks over Britain’s exit from the bloc, after the remaining 27 EU member states signed off on the final details of the bloc’s negotiating mandate during Monday’s ministerial meeting. While they are now ready to begin talks, negotiations are expected to commence only during the week of June 19, having stated it would wait for the outcome of Britain’s General Election on June 8. Meanwhile, Eurozone finance ministers, the International Monetary Fund and the Greek government failed to hammer out a final deal on Greece’s debt relief and decided to postpone a decision for their next meeting in mid-June. A reasonable batch of international macro data is anticipated today. The UK releases its Public Sector Net Borrowing figures for April, and its CBI Distributive Trades Survey for May as well as publishing its Inflation report Hearings. The EU offers Markit Manufacturing, Services and Composite PMI for May, while the US releases similar PMI data, along with its Redbook, New Homes Sales Change, the Richmond Fed Manufacturing Index for May and API Crude Stocks. Speeches are also due from the FOMC’s Neel Kashkari and Patrick Harker. UK corporates due to publish earning or trading updates include Severn Trent (SVT.L), Entertainment One (ETO.L), Shaftesbury (SHB.L), Electrocomponents (ECM.L), Aveva Group (AVV.L), De La Rue (DLAR.L), Paragon Group (PAG.L) and Topps Tiles (TPT.L). Trying to understand the ramifications of the deadly attack in Manchester this morning, London equities are expected to simply tread water from the opening awaiting further updates; the FTSE-100 is seen 5 points either side of unchanged in early trading."
– Barry Gibb, Research Analyst
Markets
Europe
The FTSE-100 finished yesterday’s session 0.34% higher at 7,496.34 whilst the FTSE AIM All-Share index was up 0.39% at 980.71. In continental Europe, the CAC-40 finished down 0.03% at 5,322.88 whilst the DAX was 0.39% higher at 12,619.46.
Wall Street
In New York last night, the Dow Jones rose 0.43% to 20,894.83, the S&P-500 firmed 0.52% to 2,394.02 and the Nasdaq Composite gained 0.82% to stand at 6,133.62.
Asia
In Asian markets this morning, the Nikkei 225 had fallen 0.06% to 19,666.69, while the Hang Seng firmed 0.28% to 25,461.43.
Oil
In early trade today, WTI crude was up 0.79% to $50.73/bbl and Brent was down 0.45% to $53.63/bbl.
Headlines
Manchester Arena blast: 22 dead and 59 hurt
Twenty-two people, including children, are now known to have been killed and 59 injured in a suspected terror attack at Manchester Arena. The blast happened at 22:35 BST on Monday following a pop concert by the US singer Ariana Grande. Greater Manchester Police said the lone male attacker, who died in the blast, was carrying an improvised explosive device which he detonated. Relatives are using social media to hunt for missing loved ones. Home Secretary Amber Rudd said it was “a barbaric attack, deliberately targeting some of the most vulnerable”.
Source: BBC News
Company news
Thor Mining (THR.L, 0.88p) – Speculative Buy
Thor Mining, the exploration and development company with tungsten assets in Australia and USA announced yesterday an update on the mineral resource estimate for its wholly owned Pilot Mountain tungsten deposit in Nevada. The Pilot Mountain project consists of four deposits: Desert Scheelite, Gunmetal, Garnet and Good Hope. Yesterday’s announcement included a maiden resource for Garnet comprising 1.83Mt grading 0.36% WO3 and an updated resource for Desert Scheelite to 9.9Mt grading 0.26% WO3 plus 19.39g/t Ag and 0.14% Cu. The total combined resource now stands at 11.73Mt grading 0.28% WO3 representing, on aggregate, a 55% increase.
Our view: The above announcement is positive news for Thor and development of the Pilot Mountain project. We note that there is considerable exploration upside on both Desert Scheelite and Garnet as well as the potential for additional resources when considering the Gunmetal and Good Hope deposits. Whilst the overall grade for Desert Scheelite fell by 19% the combined tonnage offset this with a 46% increase. We are encouraged with the relatively high-grade Inferred resources from the Garnet deposit at 0.36% WO3 as well as the aggregate grade of 0.28% WO3 for the project. We also note the potential for zinc, copper and silver mineralisation in the system. We look forward to further updates on Pilot Mountain including the potential for zinc mineralisation at the Garnet deposit. As such, we recommend a Speculative Buy rating on the stock.
Beaufort Securities acts as a corporate broker to Thor Mining plc
REQUEST A CALL FROM A BROKER REGARDING THIS RECOMMENDATION
To read Beaufort’s full research archive click here
Compiled by:
Barry Gibb, Kazunaga Senga, Sheldon Modeland, Charles Long & Ben Maitland
(t) +44 (0) 207 382 8384
(e) [email protected]
Weekly diary
Click here to see all this week’s planned corporate and economic announcements.
Recommendations
During the three months to end-April 2017, the number of stocks on which Beaufort Securities published recommendations was 216, and the recommendations were as follows: Buy – 73; Speculative Buy – 118; Hold – 22; Sell – 3.
Full definitions of the recommendations used by Beaufort Securities in its publications and their respective meanings can be found on our website here.
Important Risk Warnings and Disclaimers
This report is published by Beaufort Securities Ltd (“Beaufort Securities”). Beaufort Securities Ltd is Authorised and Regulated by the Financial Conduct Authority and is a Member of the London Stock Exchange.
RELIANCE ON THIS NOTE FOR THE PURPOSE OF ENGAGING IN ANY INVESTMENT ACTIVITY MAY EXPOSE YOU TO A SIGNIFICANT RISK OF LOSING ALL OF THE FUNDS, PROPERTY OR OTHER ASSETS INVESTED OR OF INCURRING ADDITIONAL LIABILITY.
This document is not an offer to buy or sell any security or currency. This document does not provide you with individually tailored investment advice. It has been prepared without regard to the your financial circumstances and objectives The appropriateness of a particular investment or currency will depend on your individual circumstances and objectives. The investments and shares referred to in this document may not be suitable for you.
This research is non-independent and is classified as a Marketing Communication under FCA rules. As such it has not been prepared in accordance with legal requirements designed to promote independence of investment research and it is not subject to the prohibition on dealing ahead of the dissemination of investment research in COBS 12.2.5. However Beaufort Securities has adopted internal procedures which prohibit analysts from dealing ahead of non-independent research, except for legitimate market making and fulfilling clients’ unsolicited orders.
By receiving this document, you will not be deemed a client or provided with the protections afforded to clients of Beaufort Securities. When distributing this document, Beaufort Securities is not acting for you and will not be responsible for providing advice to you in relation to this document. Accordingly, Beaufort Securities will not be responsible to you for providing the protections afforded to its clients.
Beaufort Securities may effect transactions in shares mentioned herein and may take proprietary trading positions in those shares, and may receive remuneration for the publication of its research and for other services. Beaufort Securities may be a shareholder in any of the companies mentioned in this report. Accordingly, this document may not be considered as objective or impartial. Additionally, information may be available to Beaufort Securities or the Group, which is not reflected in this material. The remuneration of the author of this report is not tied to the recommendations on any shares mentioned nor to the any transactions undertaken by Beaufort Securities or any affiliate company. Further information on Beaufort Securities’ policy regarding potential conflicts of interest in the context of investment research and Beaufort Securities’ policy on disclosure and conflicts in general are available on request. Please refer to http://www.beaufortsecurities.com/important-info.
Past performance is not a guarantee of future performance. Investments may go down in value as well as up and you may not get back the full amount invested. The listing requirements for securities listed on AIM or NEX are less demanding and trading in them may be less liquid than main markets. This may make it more difficult to buy and sell these securities.
This document includes certain statements, estimates, and projections with respect to the anticipated future performance of securities listed on stock exchanges and as to the market for these shares. Such statements, estimates, and projections are based on information that we consider reliable and may reflect various assumptions made concerning anticipated economic developments, which have not been independently verified and may or may not prove correct. No representation or warranty is made as to the accuracy of such statements, estimates, and projections or as to its fitness for the purpose intended and it should not be relied upon as such. Opinions expressed are our current opinions as of the date appearing on this material only and may change without notice. Other third parties may have issued other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect the different assumptions, views, and analytical methods of the analysts who prepared them. This report has not been disclosed to any of the companies mentioned herein prior to its publication.
This document is based on information Beaufort Securities has received from publicly available reports and industry sources. Beaufort Securities may not have verified all of this information with third parties. Neither Beaufort Securities nor its advisors, directors or employees can guarantee the accuracy, reasonableness or completeness of the information received from any sources consulted for this publication, and neither Beaufort Securities nor its advisors, directors or employees accepts any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document (except in respect of wilful default and to the extent that any such liability cannot be excluded by the applicable law). You should not rely on this document and should not use it substitution for the exercise of the independent judgment of yourself or your adviser.
The information contained in this document is confidential and is solely for use of those persons to whom it is addressed and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose. Other persons who receive this document should not rely on it. Beaufort Securities, its directors, officers and employees may have positions in the securities mentioned herein.
|