International stock news

Rss Today on Proactive AU

2014-04-24

Is a copper price rise on the horizon? "ASX copper plays"

 
While the copper price may have been on a downward trend in recent years, there are some key catalysts in the short to medium, as well as longer term, that could re-rate the metal higher. Australia's biggest trading partner, China, is the world's top user of refined copper.
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Rss Today on Proactive UK

2014-04-24

Broker spotlight: Randgold Resources, African Barrick, Standard Life, ARM Holdings, Beowulf Mining ...

 
Gold miners have rallied this year on the back of a stronger gold price and determined cost cutting, but the outlook from here is more mixed suggests HSBC. The gold price averaged US$1,292/oz in the first quarter, 2% higher than the prior quarter. But with by-product metals weaker on average without production growth there won’t be much help on the revenue side for most producers in this quarter just ended.  HSBC notes that during 2013 gold companies cut costs significantly, but it was mainly the relatively easy cuts.  In the first quarter, year-on-year costs will be lower for many miners but the quarter–on-quarter picture is a little mixed adds HSBC, which believes it will be harder to keep the trend going as miners reduce exploration and capex to the bare minimum.  Those miners able to show production growth this year have already differentiated themselves in the market says the broker and may continue to be favoured, unless the gold price rises significantly.  Perhaps signalling gold’s nadir, a bidding war for mid-tier Osisko ended up  with a knock out combo bid from Yamana and Agnico Eagle while reports of a potential merger deal between Barrick and Newmont indicate that M&A activity in the sector is heating up. Of the London-listed precious metals group African Barrick Gold (LON:ABG) gets an upgrade to ‘overweight’ from ‘neutral’, but Hochschild (LON:HOC) and Randgold Resources (LON:RRS) go the other way to ‘neutral’ from ‘overweight’. African Barrick, meanwhile, remains a ‘sell’ for Investec after its quarterly production update today that showed 168koz in the first quarter at a cash cost of $756/oz and all-in sustaining costs of $1,131/oz. Guidance for the year was unchanged and so is the South African broker’s target price of 213p and hence the ‘sell’ verdict.  Goldman Sachs has cast an eye over the implications for the UK life industry from the recent spate of regulatory changes including the annuity rules, pension  charge cap and  FCA review of legacy policies.  Headlines have implied this is a ‘life changing’ event for the industry, but Goldman is more sanguine suggesting a mid-single digit impact to 2014-2015 earnings per share. Earnings changes include lower retail annuity flows, higher bulk flows, with some margin compression, and fee benefits from better AuM retention and flow capture.  Changes to annuities will have the greatest impact, but the annuity market will survive in smaller form. Regulatory changes continue to support St  James’s Place 9LON:STJ), which is the broker’s  top pick within UK life  and has been added to the Conviction Buy List.  Resolution (LON: RSL) gets an upgrade to ‘buy’ from ‘neutral) as it has been oversold on downside risk of upcoming regulatory review said the broker, while Standard Life (LON:SL.) moves up to ‘neutral’ from ‘sell’. Mobile chip designer ARM (LON:ARM) remains ‘overweight’ at Barclays Capital as it has confidence in royalty revenue accelerating in the second dhalf after the solid first quarter showing. “We still think ARM can drive mid-teens sales growth and high-20% earnings growth over the next few years.” The new that only one of Drax’s (LON:DRX) biomass units approved for early  Contract for Difference (CfD), knocked its share price by 14%. A legal challenge is underway, but the risks are now greater and that has prompted HSBC to reduce its target price to 830p from 875p, though its investment stance remains ‘overweight’.  Beowulf Mining (LON:BEM) has now submitted an updated exploitation concession application for its Kallak North iron ore deposit to the Swedish Mining Inspectorate.  Receipt of an exploitation concession for Kallak North would grant Beowulf the right to work the deposit for at least 25 years.  As its most advanced iron ore project to date, Cantor Fitzgerald said it would expect award of this permit to provide a significant driver to the share price. Cantor keeps its buy recommendation and 18p target price. Northland has reduced its rating on Tower Resources (LON:TRP) to ‘hold’ from ‘buy’ now that Welwitschia-1 well has spud and while not solely reliant on this one well, a significant amount of its valuation is tied into the prospect said the broker.
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Rss Today on Proactive US

2014-04-24

Wall Street slips after data; Apple and Facebook decline ahead of earnings parade

 
U.S. stocks edged lower on Wednesday after two disappointing economic reports, with the S&P 500 and the Nasdaq on track to break their six-day win streaks as investors await an earnings parade after the bell.
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