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The Markets
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Media

ASX falls as this gold miner steadily grows

The Australian All Ordinaries fell 2.1% today with a 5.3% tumble in energy stock on the back of more weakness in the oil price. One gold producer, however, continued a steady march as the precious metals sector held its ground.

The Australian All Ordinaries pitched another 2.1% today to 5,069 points, marking a 15% decline for the benchmark since the start of the week.

Trading reflected concerns for a host of negative macro influences, including overseas market retreats, slower Chinese growth and a sliding oil price as well as escalating political tensions in both Asia and the Middle East.

Panic in Chinese markets had a particularly strong gravity on local stocks, with the Shanghai Composite Index falling 7.3% in the first 25 minutes of action before trading curbs kicked in.

Investor concern in this part of the world has stemmed largely from depreciation in the value of the yuan putting pressure on other Asian countries to devalue their currencies to stay competitive with China's large export sector.

The Australian energy sector was the hardest hit, down 5.3% on the session.

MARKET ACTION

Despite this gloomy context, Pantoro (ASX:PNR) turned in another positive performance to close at A$0.075, or 31% higher than a month ago when the company changed its name from Pacific Niugini.

The stock is now 67% stronger than at the mid-point of last year.

The continued support comes as the company cements its status as one of Australia's newest gold producers at the 80%-owned Nicolsons mine in Western Australia, which has costs in the lowest quartile of domestic producers.

Last month, the company recorded cash costs under A$1,100 per ounce, which offers significant potential for strong returns in an Australian-dollar gold market environment currently enjoying pricing over the A$1,500-per-ounce mark.

Nicolsons has set an annualised target rate of 30,000 ounces of gold production in Q1 2016.

This is especially significant since an increase in output would drive the cost per ounce down even further and improve overall profitability.

BLUE CHIPS

Major miners

BHP Billiton (ASX:BHP) down 4.5% to $16.38

Fortescue Metals Group (ASX:FMG) down 5.3% to $1.68

Newcrest (ASX:NCM) up 1.1% to $13.19

Rio Tinto (ASX:RIO) down 4.6% to $40.79

Energy or Oil and Gas

Oil Search (ASX:OSH) down 3.9% to $6.36

Santos (ASX:STO) down 6.8% to $3.27

Woodside Petroleum (ASX:WPL) down 4.7% to $27.06

Big 4 banks

ANZ Bank (ASX:ANZ) down 3.0% to $25.91

Commonwealth Bank (ASX:CBA) down 1.8% to $80.60

National Australia Bank (ASX:NAB) down 3.0% to $28.10

Westpac (ASX:WBC) down 2.9% to $31.28

Other banks, financials and industrials

AMP (ASX:AMP) down 2.0% to $5.49

Bank of Queensland (ASX:BOQ) down 2.5% to $13.14

Bendigo and Adelaide Bank (ASX:BEN) down 2.1% to $11.36

Macquarie Group (ASX:MQG) down 1.8% to $77.73

Suncorp (ASX:SUN) down 0.8% to $11.62

Telstra (ASX:TLS) down 1.5% to $5.32

Retailers

JB Hi-FI (ASX:JBH) down 3.3% to $20.34

Wesfarmers (ASX:WES) down 2.1% to $39.97

Woolworths (ASX:WOW) down 2.9% to $22.70

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The Markets
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