Good morning and welcome to the Morning Outlook.
I’m Rachael Jones reporting live from Kalkine TV Sydney studio.
The Australian share market is expected to start the week on a positive note.
According to the latest SPI futures, the ASX 200 is likely to open massive 166
points or 2.4% higher today. At the closing bell on Friday, the S&P/ASX 200 was 0.1 per cent or 7
points higher at 6,998. Over the week it was 3.2 per cent or 224 points lower. The best-performing
sector was Information Technology, up 8.1 per cent. The worst-performing sector was Financials,
down almost 1 per cent. The best-performing stock in the S&P/ASX 200 was Block (ASX:SQ2),
closing 32.5 per cent higher at $153.75. The worst-performing stock in the S&P/ASX 200 was
Blackmores (ASX:BKL), closing 10.5 per cent lower at $75.31. The US shares
rallied amid reports Russia was ready to send a delegation to Minsk for talks with Ukraine.
However, the relief rally could be short lived amid uncertainty over global growth outlook.
Sandfire Resources reports strong copper price and operational performance driving
record revenue and 24% increase in interim profit to US$55.2 million. Sandfire
cuts its dividend - announcing an interim dividend of 3¢ a share, less than half the 8¢ a share
interim dividend it paid a year ago. The company’s revenue rose 22 per cent to $US311.8 million.
The company’s DeGrussa Operations delivered production of 34,621 tonnes of contained
copper and 16,254 ounces of contained gold for the period, towards FY2022 guidance.
Perseus Mining has entered into an agreement with Orca Gold to acquire the Canadian miner by way
of a statutory plan of arrangement. Perseus owns 15 per cent of Orca and have offered the remaining
shareholders 0.56 Perseus shares for each Orca share held, an implied value of 89.6
canadian cents a share The total consideration to be paid by Perseus for 100 per cent of Orca
is $215 million Canadian dollars. Orca’s board of directors unanimously recommend
that the Orca shareholders vote in favour of the Orca Acquisition.
Newcrest Mining has received approval under the Investment Canada Act and that all regulatory
approvals have now been obtained in relation to the acquisition of Pretium Resources Inc. by
way of Canadian Plan of Arrangement. The Transaction is expected to complete on or about
9 March 2022 (Vancouver time). The Transaction, as announced on 9 November 2021, adds a large scale,
long life and low cost mine to Newcrest’s portfolio of Tier 1 assets, and is expected
to increase Newcrest’s annual gold production to well above 2 million ounces. The combination
of Newcrest and Pretivm will create the largest gold miner in the Tier 1 jurisdiction of British
Columbia, operating both the Brucejack and Red Chris mines. Now it’s time for a short break – but
stay tuned for more news set to effect the trading day. @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
Welcome back to the Morning Outlook report. On Wall Street, The Dow Jones surged 2.5%, the
S&P 500 climbed 2.25%, and the NASDAQ ended 1.6% higher. The global markets may see some selling
pressure through the week after Western nations announced a harsh set of sanctions to punish
Russia for its invasion of Ukraine. In the global markets, STOXX 50 rose 3.7%, FTSE surged 3.9%,
DAX soared 3.7%, and CAC closed 3.5% higher. Russia's main stock index
closed up 20% on Friday after Thursday's record 33% drop while the rouble recovered somewhat after
falling to a record low on Thursday at 90 per dollar with analysts expecting more pain
on Monday. Oil prices fell on Friday after sharp rises early in the session on concern
over potential global supply disruptions from sanctions on major crude exporter Russia. The
April Brent crude futures contract fell 1.2%, to settle at US$97.93 a barrel. The more active
May contract shed 1.4%, to US$94.12. Gold prices reversed course to slide 1% on Friday,
and palladium also slipped, as Russia's invasion of Ukraine triggered sharp swings
in the precious metals market. Spot gold fell 0.9% to US$1,887.05 per ounce swinging between
gains and losses through the session. That’s all for our Morning Outlook report here on
Kalkine TV. Have a great day trading and stay tuned for more market updates and economic news
live throughout the day. This is Rachael Jones signing off for now.