CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.
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*Notice: All HK Orders are day only. Unfilled orders must be reinstated the next day*
Close: Mongolia Related ASX Listed Companies, November 5, 2010 | ||||||||
Code | Last  | $ +/- | Bid | Offer | Open | High | Low | Volume |
HUN | 1.075  | 0.035 | 1.070 | 1.075 | 1.050 | 1.120 | 1.025 | 2,959,077 |
VOR | 0.039 | 0.000 | 0.042 | 0.041 | 0.000 | 0.000 | 0.000 | 0 |
ALG | 0.440 | 0.000 | 0.405 | 0.510 | 0.000 | 0.000 | 0.000 | 0 |
AKM | 0.325  | -0.010 | 0.320 | 0.325 | 0.340 | 0.340 | 0.310 | 3,092,652 |
GMM | 0.160 | 0.000 | 0.160 | 0.165 | 0.160 | 0.160 | 0.155 | 404,577 |
LRL | 0.270 | 0.000 | 0.265 | 0.270 | 0.265 | 0.280 | 0.265 | 892,000 |
LEI | 33.180 | 0.330 | 33.170 | 33.250 | 33.350 | 33.500 | 33.000 | 1,178,625 |
RIO | 87.200 | 4.000 | 87.140 | 87.300 | 85.350 | 87.340 | 85.350 | 4,200,851 |
BHP | 45.270 | 1.550 | 45.250 | 45.300 | 44.890 | 45.320 | 44.780 | 17,844,820 |
An * next to the security code indicates there has been an announcement today relating to that security. Click on the * to view the announcement.
Source: asx.com.au
Wednesday, November 3 Announcements:
- Voyager Resources Ltd (ASX:VOR, Options ASX:VORO) – Trading Halt, pending an Announcement from the Company.
Mongolian ruling party drops 'revolutionary' from name
November 6 (Australia Network News) Amid widening democratic reforms, Mongolia's ruling party has voted to drop the word "revolutionary" from its name.
At a party conference, the Mongolian People's Revolutionary Party voted to return to a name it last used in the early 20th century, the Mongolian People's Party.
The country's education minister, Yondon Otgonbayar, says the decision was supported by the majority of delegates.
"We had many revolutions during the 20th century," he said.
"So the word 'revolution' fit our party during that era."But now we are in the 21st century and we have a new vision - not of revolution, but of development and social harmony."
The party was the first in Mongolia, and was founded in 1921. The word "revolutionary" was added three years later.
In 1924, Mongolia declared itself a communist country, and the party ruled unopposed for the next 66 years.
Communist rule came to an end in 1990, and Mongolia held its first democratic elections in 1992, but the MPRP has remained in control for most of that time.
NEA Denies Khan Resource Statement on Court Decision
November 5 (UB Post) On November 3, the Nuclear Energy Agency of Mongolia called a press conference in connection with a recent statement by Khan Resources (TSX:KRI).
Khan Resources announced late October that Mongolian Appeal Court again ruled in favor of it, regarding its mining license and upheld an administrative court decision.
NEA Lawyer Sugarsuren said the trial held on October 13 ruled not in favor of Khan Resources but in favor of Mongolian Nuclear Energy Agency and invalidated the mining license held by Khan's subsidiary, Central Asian Uranium Co LLC.
According to NEA official Bayarbayasgalan, Khan failed to comply with several Mongolian laws including Law on Special License, Law on Earth Bowels and Law on Minerals.
Particularly, Khan carried out operations on specially protected area, traded 54 million shares at the Toronto Stock Exchange and failed to commence the exploration within three years after the issuance of exploration license, which were revealed by the inspection of professional inspection agency.
Khan Resources owns a license to explore uranium in Dornod Province.
Mongolia Energy Will Issue HK$466.8 Million of Convertible Notes
Nov. 3 (Bloomberg) -- Mongolia Energy Corp. agreed to issue HK$466.8 million of 3.5 percent convertible notes due 2013 to funds run by Och-Ziff Capital Management Group LLC, the company said in a Hong Kong stock exchange filing.
The company also granted an option for the subcribers to buy a further HK$311.2 million of the notes within six months, according to today's statement. Mongolia Energy said it plans to use the money to develop its Khushuut coking coal project in western Mongolia.
Mapping a New Mining Model
Mongolia Energy Corporation begins its journey to world energy leader with the Khushuut coking coal mine
November 4 (Business Review Australia) Mongolia Energy Corporation Limited (MEC) is an energy and resources developer that has global brand recognition aspirations. With current operations and investments over Mongolia and Xinjiang in North-western China, Mongolia Energy looks to acquire, explore and develop additional energy and mineral resources with related projects.
The first project on MEC's path to become a global energy leader is its current and primary project, the Khushuut coking coal mine, a 600 hectares site on MEC's 330,000 hectares of concession areas in Western Mongolia.
"A deal was cut; the assets were worthwhile and the acquisition was completed," says James J. Schaeffer, CEO." I was brought on to take this company from the various businesses that it had in the past—and make the transition to an energy company."
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STRATEGIC ACQUISITIONS
After the initial 34,000 hectares acquisition, MEC completed a second transaction for an additional 32,000 hectares and a third transaction for 263,000 hectares, all totalling 330,000 hectares in Western Mongolia of various coal and mineral licenses. Finally, MEC completed a fourth transaction, acquiring 3,000 hectares of an iron ore deposit.
"Those properties are all run by our Mongolia subsidiary, known as MoEnCo LLC," says Schaeffer.
"The headquarters for those operations are in the Mongolian capital city of Ulaanbaatar. In addition to that, we took a 20 per cent interest in a Mongolian oil and gas company, MoOiCo. We are passive investor in that, which is moving along slowly. Our main emphasis is on the Khushuut mine and other licenses."
MEC also has taken a 19 per cent interest in a Chinese corporation in the Xinjiang Province, China. That Company is engaged in coal, copper, iron and other resources related businesses in China.
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INFRASTRUCTURE WORK
Mining the resources is not enough in Mongolia, a region absent of a strong infrastructure network. As such MEC must invest in periphery projects as well.
The Company has constructed a 340 kilometre, two-lane paved highway to transport the coal to the Chinese border. Upon completion, the road will be a USD$200 million asset on MEC books.
Other planned infrastructure projects include a wash plant, which is having designed by Taggart Global LLC. MEC is working on the preliminary design of an initial 12MW power generation facility assisted by Shenyang Design Institute. These projects will benefit the community as will additional schoolhouses, scholarships and 400 local jobs.
"We will basically be managing a series of contract operators. Even if the projects go to joint venture partnerships, it is our objective to retain control," says Schaeffer.
"The ability to organize a project and move on to the next one is our competitive strength."
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MERITUS INTERSECTS 16.0 METRES OF 7.73 G/T GOLD AT GUTAIN DAVAA
Nov 05, 2010 (TheNewswire.ca via COMTEX) -- (via Thenewswire.ca) Vancouver, B.C.: Meritus Minerals Ltd. (MML) (TSX-V - MER) has received additional analytical results from its diamond drilling program on the Toordogiin Shil Prospect, Gutain Davaa Project in northern Mongolia.
Two of the holes reported have substantial intersections of strong gold mineralization, i.e. 16.0 metres of 7.73 g Au/t in TSD010 and 10.7 metres of 7.21 g Au/t in TSD008. Thicknesses of mineralized sections noted represent drilled thicknesses and approximate true thicknesses although the complexity of the geology does not allow for accurate measurement of true thicknesses at this early stage in the program. Both holes contain narrow very high grade zones within the broader mineralized zones. The thicker intersections noted above and in the following table include assays to a cutoff of 0.25 g/t gold. Full results from five of the holes reported are listed in the table below.
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Centerra uncertain on timing for Mongolia project go-ahead
November 5, TORONTO (miningweekly.com) - Toronto-based Centerra Gold (TSX:CG)can't tell how long it might be before the company gets permission to start commissioning its Gatsuurt project in Mongolia, spokesperson John Pearson said on Friday.
Centerra said earlier in the day it will cut about 250 jobs in Mongolia when mining at its Boroo operation ends later this month, as the plan had been for those workers to be redeployed at the now-delayed Gatsuurt, about 50 km away.
The company is waiting to hear how the project will be affected by a new water and forests law, which has been approved in Mongolia, but has yet to be enacted.
The final permitting for Gatsuurt will not be approved until the uncertainty under the new law is dealt with.
"It is very hard to predict" how long that might take, Pearson said in a telephone interview.
The company plans to keep capital spending on the Gatsuurt project "minimal" until the approvals are received, CEO Steve Lang said earlier on a conference call.
However, once the green light is received, production from Gatsuurt should start up reasonably quickly, he said.
"It's really a very short timeline. I think we would immediately look to rehire the employees, I suspect we could be mining within a week," Lang said.
Even including the accumulation of some stockpile material at both the mine and plant, production from Gatsuurt ore could begin "in just a few weeks", he said.
In the meantime, Centerra will continue to process stockpiled ore at Boroo after mining ends at the end of this month.
"I believe we have enough stockpiled ore at Boroo to take us through at least mid-next year," Lang said.
Other options include the processing of refractory and low-grade ore which has been stockpiled.
Centerra's other operation is the Kumtor mine, in Kyrgyzstan.
The company reported lower third-quarter earnings and production on Friday, but maintained its full-year output forecast because of plans to mine high-grade zones at Kumtor during the last three months of the year.
Link to related article:
Chinalco Seeks to Take Part in Oyu Tolgoi, Zhao Says
Nov. 3 (Bloomberg) -- Aluminum Corp. of China, the nation's biggest producer of the metal, is seeking to participate in the Oyu Tolgoi copper and gold project in Mongolia that's being developed by Ivanhoe Mines Ltd. and Rio Tinto Group.
"We are seeking to find the best time to participate in the Oyo Tolgoi project," Zhao Zhengang, general manager of overseas investment at the state-owned company that's known as Chinalco, said today in an interview in Beijing. "Mongolia is a very important region as it is rich in mineral resources and the region is a good fit with Chinalco's plans to develop overseas"
Chinalco, the largest shareholder in Rio Tinto, has stepped up overseas acquisitions to diversify, buying copper assets in Peru and an iron ore project in Guinea via its publicly traded unit. London-based Rio says Oyu Tolgoi, due to start output in 2013, is the world's largest untapped copper and gold deposit.
Chinalco's President Xiong Weiping said in August that Chinalco is studying acquisitions of "large and quality" copper deposits with reserves of as much as 5 million metric tons. The company bought Peru Copper Inc. in 2007 to develop the $2.2 billion Toromocho project in central Peru.
Manas Petroleum Corp. Announces the Completion of Seismic Acquisition on Block 14 in Mongolia
BAAR, SWITZERLAND--(Marketwire - November 3, 2010) - Manas Petroleum Corporation (OTCBB:MNAP) ("Manas") is pleased to announce that the seismic acquisition on block 14 has been completed without incident. The Chinese contractor DQE International Tamsag (Mongol) LLC acquired 162.4 km of 2D seismic, representing 54.1% of the total seismic program on blocks 13 & 14. All equipment and crew have been moved to block 13, where seismic acquisition has commenced. Manas anticipates that the seismic survey will be completed by the end of November 2010.
Manas intends to use the additional 2D seismic data to improve its technical database and its chance of drilling a successful exploration well. After interpretation of the full dataset, Manas will decide whether it is ready to drill one or more exploration wells or that it needs to acquire 3D seismic to define the drill prospects in better detail. Depending on this decision, Manas hopes to spud the first well in 2011.
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D. Bathuyag: The state does not work arbitrarily
The head of the Mineral Resources Authority, D. Bathuyag, answers our journalist's questions.
-On taking office you said you would review all exploration and extraction licenses. Many companies complained. How has the work progressed?
-My appointment is for four years and I got the job about two years ago. One of my main tasks is to follow the Prime Minister's instructions to put the whole license issue in order, within the law. When I came, there were 5,187 exploration and mining licenses covering 48.2 million hectares. Since then, the state has taken back over 21 million hectares. At the moment, we have 3,155 exploration and 1,134 mining licenses. The number of mining licenses is on the increase as exploration licenses are converted to mining ones. The number of exploration licenses might fall as we review the 3,155 of them from the legal point of view. Investors, foreign or domestic, must clearly understand that they have to follow Mongolian laws. This is our only principle and it is not that the state issues or revokes licenses arbitrarily. Companies have a responsibility to abide by the law of the land and we are checking on how they have been doing this.
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-President Elbegdorj has suspended the issue of any new license and also transfer of license on grounds of national security. How have foreign investors reacted to this?
-Following up on the initiative of the President, Parliament has suspended both activities until December 1, 2010. This is consistent with our work of cancelling licenses held illegally. Investors usually do not complain, but they do watch if the implementation is as strict as MPs wanted the law to be. What is most important is that regulations should be stable and consistently enforced. I don't think the country will suffer any real financial loss because of revocation of exploration licenses. The license fee collected in a year is around MNT30 billion.
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GAFSP Awards Mongolia $12.5M Agriculture Grant
Partners in the Global Agriculture and Food Security Program (GAFSP), a new fund to increase agriculture productivity and reduce poverty, announced this week that Ethiopia, Niger and Mongolia will receive the fund's second round of grants totaling $97 million. The grants will help each country increase food security, raise rural incomes and reduce poverty by enabling small holder farmers to grow more crops and earn more.
"Today's announcement demonstrates the promise of the Global Agriculture and Food Security Program," said Treasury Secretary Tim Geithner. "These investments will improve access to better seeds and soil, build rural infrastructure and connect farmers to markets. While three countries have been granted funding, many more compelling proposals were not financed due to lack of resources. In order to sustain this fund, we urge our G-20 colleagues to join us in this endeavor."
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The fund granted awards to:
· Ethiopia ($51.5million): The fund will bolster agricultural production by increasing agricultural productivity and reducing soil degradation. GAFSP will also accelerate agricultural commercialization and agro-industrial development, improving nutrition and food security and protecting vulnerable households from natural disasters.
· Niger ($33 million): The fund will finance the construction of new irrigation and water-harnessing infrastructure aimed at improving crop productivity.
· Mongolia ($12.5 million): The fund will assist in linking farmers to markets, raising livestock productivity and quality, and providing technical assistance, allowing herders to more easily market their livestock.
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Rio Appoints Fourth Member to Ivanhoe Mines Board
LONDON, ENGLAND--(Marketwire - Nov. 5, 2010) - Robert Friedland, Executive Chairman and Chief Executive Officer of Ivanhoe Mines (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN), today announced the appointment to the Ivanhoe Mines Board of Directors of Robert B. Holland III, a Dallas, Texas, oil executive and former United States Executive Director of the World Bank.
Mr. Holland will serve as a non-executive, independent member of the Ivanhoe board, effective immediately, filling a vacancy created by the retirement of Robert Hanson after more than a decade as a member of the Ivanhoe Mines Board of Directors.
Mr. Holland's nomination to the 14-member Ivanhoe Mines board by Rio Tinto increases the present number of Rio Tinto appointees to four. Rio Tinto is entitled to nominate a proportionate share of members to the Ivanhoe board, based on Rio Tinto's shareholding in Ivanhoe, under terms of the October 2006 private placement agreement between Rio Tinto and Ivanhoe Mines. Rio Tinto currently owns a 34.9% interest in Ivanhoe Mines.
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Mongolia: Wind Farm Project Could Tilt Ulaanbaatar from Coal to Green Energy
November 3 (Eurasianet.org) Despite Mongolia's nearly limitless supplies of coal, Ulaanbaatar recently approved plans to set up the country's first commercial wind farm. The decision is fueling a public debate that aims to strike the right balance between Mongolia's near-term and long-term economic development interests.
Sparsely inhabited, with vast steppes and ample wind, Mongolia's potential for harnessing renewable energy is huge, proponents say. In 2005, the government passed the Renewable Energy Program, mandating that green energy sources account for 20-25 percent of Mongolia's needs by 2020. Renewable energy is nothing new for Mongolians: It is common to see a remote nomad's ger – a traditional felt home – fitted with solar panels and windmills powering satellite receivers.
"This is a very ambitious target, but achievable with large scale wind farms and solar power plants," says Namjil Enebish, Executive Director of the National Renewable Energy Center. Approximately 2 percent of the country's power needs are currently met with household solar systems and small hydro-electricity projects. The wind farm could significantly boost this figure, he told EurasiaNet.org.
Newcom Group, the country's largest Mongolian-owned private mobile telecom provider, is helping finance the $80-million joint venture with the European Bank for Reconstruction and Development (EBRD). The project is to be situated on Salkhit Mountain, 78 kilometers south of Ulaanbaatar. Newcom has already signed a power-purchase agreement with the government for the proposed 50-megawatt project. Construction is slated to start in early 2011.
"Extensive wind mapping data has shown Mongolia has the wind capacity to generate enough electricity to supply all of China's electric needs," says Bayanjargal Byambasaikhan, head of the Clean Energy Division of Newcom Group, stressing wind's vast potential. The cost has decreased rapidly in recent years, making wind harvesting the most suitable renewable energy for commercial operation in Mongolia, he said.
But it is still more expensive than coal, critics contend. And coal is a much better bet to bring in much-needed revenue in the coming year and meet the country's power needs, they emphasize.
With estimated reserves of 150 billion tons, according to the Ministry of Mineral Resources and Energy, the country is experiencing a coal rush. Exports to China could increase from 7 million tons in 2009 to 30-50 million tons by 2015, said Alexander Molyneux, CEO of South Gobi Resources, one of largest foreign coal miners in Mongolia, at the Discover Mongolia Mining investor's forum in September.
Mining experts believe the need to exploit Mongolia's coal resources to generate near-term revenue outweighs the need to focus on expensive renewable energy solutions. "It will be extremely difficult for Mongolia to find alternative energy sources which can come even remotely close to competing with coal as a primary energy source for many years to come," contends Graeme Hancock, senior mining specialist at the World Bank.
Apart from the higher investment costs, wind power is unable to provide nearly enough power to heat homes during Mongolia's bitterly cold winters when total heat demand from the country's Combined Heat and Power (CHP) Plants exceeds the level of electricity production. "Cost-wise, coal wins clearly, both in capital and operating terms," he says.
Stakeholders in the Salkhit Wind Farm are under no illusion that renewable resources will replace coal any time soon. "Of course if you're sitting on the largest untapped coal deposit in the world, it puts the whole renewable energy issue a little in the background," admits EBRD resident head Philip ter Woort. But with mounting environmental problems in Mongolia, it makes sense to examine renewable options, he added. Renewable energy could help mitigate the increased CO2 emissions that the country is expected to generate with the mining boom, added ter Woort.
Most of Mongolia's energy needs "will be supplied by coal, there's no doubt about that. But there is incremental capacity that can be supplied by clean energy sources and that has to be developed for a more sustainable growth," says Byambasaikhan at Newcom.
The question now is how to pay for an investment that many say is redundant in a developing country. According to Enebish of the National Renewable Energy Center, some of the capital can be generated from eco-taxes on dirty industries and channeling a portion of mining revenue towards financing renewable energy. But this remains a risky political decision for a country that has been wooing investors with a favorable low-tax climate. Bernard Guarnera of Behre Dolbear, one of the world's largest mining advisory firms, warned against raising the tax rate at the September mining investor's forum: "When you get too greedy, the goose goes."
Green activists are concentrating on the big picture, however: "We're not looking at short term goals. In other words we're very patient," says Byambasaikhan, who believes that regardless of present day economics, renewable energy is a key part of Mongolia's future.
Mongolia: Gearing Up For The Boom Years
November 5 (Risk Watchdog, Business Monitor International) 783 years after the death of Genghis Khan, and 20 years after the Democratic Revolution which heralded a system of multi-party democracy and a market economy, Mongolia is about to be catapulted back onto the international scene. Why? Because my colleagues at Business Monitor International are set to launch the inaugural Mongolia Business Forecast Report. Partly, we're doing this because our clients are demanding it. But mostly, it's because Mongolia is going to be the fastest growing economy in the world in the next decade, and we want to tell everybody about it.
When I look at the facts, I can hardly disagree with this assessment. Mongolia has massive resources, with some of the world's biggest untapped reserves of copper, gold, coal, uranium and a host of others. Many of these are right next to the world's most populous country, and its most compelling consumer story: China. What is more, Mongolia is a functioning parliamentary democracy, which I think makes it a far safer bet over a multi-year time horizon than most other commodity plays. Finally, following the abolition of the windfall tax on the profits of foreign companies in 2009, the business environment suddenly looks a whole lot more attractive.
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Over the long run though, the rewards for those willing to take the plunge now are likely to be huge. Ivanhoe shares on the New York Stock Exchange are up 100% since the summer, and Mongolia's own bourse has made similar gains over the course of 2010. My colleagues here at Business Monitor have already written about listings of Mongolian companies in Hong Kong, and they expect more to follow.
Foreign currency reserve grows to $1.8B
November 5 (news.mn) The Mongol Bank has revealed that the country's foreign currency reserve has exceeded USD1.8 billion, and is expected to reach USD2 billion before the year ends. The increase is mainly due to the high prices of gold and copper.
Petro China has caused environmental damage worth MNT1 billion, says probe
November 4 (news.mn) The law on environmental impact evaluation calls for the assessment of the effects of any industrial activity and of the financial costs of reclamation every four years.
Following complaints from citizens about the ecological damage done by Petro China Dachin Tamsag in Dornod province, Munkh-Orgil Trade Company was asked to probe the allegations.
Its head, B.Erdenebaatar, has now said they have completed the work and concluded that the ecological damage done by Petro China in the area the company was asked to study amounted to MNT1 billion in monetary terms.
The company dug over 300 holes and then linked them, in the process heavily damaging the soil.
Mongolia Investment Summit later this month in London
November 5 (news.mn) Following the Hong Kong conference in October, The Mongolia Investment Summit on November 23-25 in London will be bringing together companies operating in Mongolia with the Mongolian government to discuss the opportunities and challenges surrounding investing in this frontier economy. Delegates will learn the best entry strategies into Mongolia; access partnership and investment opportunities; gain first hand insights into regulations and policies affecting foreign investment; understand how frontier market investment can work for them; and get a clear picture of how the government is working to improve Mongolia"s business environment.
Andrew Harding, Chief Executive, Copper, Rio Tinto, will speak on the importance of emerging markets in meeting global commodity demands; Robert Friedland, Executive Chairman, Ivanhoe Mines on how they worked with the Mongolian government to come to an agreement on the Oyu Tolgoi mine, and how the mine will be developed; Kevin Bortz, Director, Natural Resources, EBRD about Mongolia"s economic outlook and what remaining reforms need to be made; and Daniel Broby, Chief Investment Officer, Silk Invest, about their appetite for Mongolian investment, what type of projects they are seeking and what restrictions and risk perceptions they have.
Among Mongolian participants, G. Tsogtsaikhan, Director, MonAtom LLC, will speak on where the opportunities for Mongolia"s uranium mining are found, and T. Amarzul, Executive Director, Petro Matad LLC, on the development of Mongolia"s petroleum resources, and why they chose to list with LSE AIM.
More information can be had at www.terrapinn.com/mongolia.
Erdenes Tavan Tolgoi IPO likely late next year
November 3 (news.mn) L. Enebish, General Director of Erdenes MGL, has said that Erdenes Tavan Tolgoi LLC, which holds the license for the Tavan Tolgoi coal deposit, is expected to have its IPO in late 2011. The Government is likely to offer 30% of the company's shares in the IPO. Mongolia Mining Corporation (MMC) recently raised USD651million by selling 20% of its shares, taking the company's worth to USD3.2 billion. Erdenes Tavan Tolgoi owns a reserve at least ten times larger than MMC's and will sell 30% of its stock, so if the MMC IPO is any indicator, Erdenes Tavan Tolgoi could easily end up the biggest Mongolian company.
Australia
Share rally gains momentum
November 5 (AAP) Close Australian stocks rose for a fifth day, their longest winning run since March, with miners leading the charge as optimism about the prospects for growth pushed global markets higher.
At the close, the benchmark S&P/ASX200 index was up 55.3 points, or 1.2 per cent, at 4800.6, for a weekly rise of 3 per cent, the most in nine weeks. The broader All Ordinaries index rose 55.4 points, or 1.1 per cent, to 4872.9.
Among the sectors, materials rallied 3.4 per cent, gold shares jumped 4.3 per cent, while financials slipped 0.1 per cent.
The dollar soared to yet another record as the greenback weakened against major currencies, but retreated slightly after the Reserve Bank's monetary statement pointed to a temporary halt in rate rises.
need2know:
- The dollar rises to $US1.0141
- Asian shares up on recovery hopes
- Gold slips to $US1389 an ounce
- Oil extends rally to hit $US87
- Dow futures are flat at 11,382
- The dollar rises to $US1.0141
- Asian shares up on recovery hopes
- Gold slips to $US1389 an ounce
- Oil extends rally to hit $US87
- Dow futures are flat at 11,382
City Index market strategist Michael McCarthy said resources stocks continued to strengthen on the back of investors' high risk appetite over the past two trading sessions.
''We have much more certainty around the investment environment, going forward,'' he said. ''We know there will be a stable interest rate environment in the US after a very well and finely pitched (stimulus) package from the FOMC (Federal Open Markets Commmittee of the US Federal Reserve.
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Market heavyweights BHP Billiton and Rio Tinto led the share market higher, with Rio Tinto gaining $4.08, or 4.8 per cent, to $87.19, its highest level since September 2008.
BHP Billiton climbed $1.55 or 3.55 per cent to $45.27, its highest level since May 2008.
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Gold major Newcrest Mining surged $1.88, or 4.6 per cent, to $42.84 helped by the price of gold, which climbed to a fresh record high overnight.
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Preliminary national turnover reached 3.14 billion shares, worth $6.78 billion, with 780 stocks up, 389 down and 384 unchanged.
A$ rise continues, despite predictions
November 6 (BusinessDay.com.au) THE Australian dollar is overvalued against any currency you care to name, according to London-based analyst Jeremy Hale.
And investment bank Deutsche forecasts it will fall to about US87¢ by next September.
Yet there it was again yesterday, enjoying more than 24 hours above its US dollar counterpart, crossing $US1.01 and pushing towards $US1.02.
Part of the story is not so much a surge by a victorious Australian dollar as a fall by the US dollar as investors come to grips with the Federal Reserve's plan to put an extra $US600 billion into circulation by buying US Treasury notes.
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Europe
European Stocks Gain as Fed Stimulus Offsets Sovereign Concern
Nov. 6 (Bloomberg) -- European stocks rose to a six-month high this week as the Federal Reserve announced another round of bond purchases to boost the economy, offsetting renewed concern that some European countries won't be able to repay their debts.
Xstrata Plc led basic-resources stocks higher, rising 15 percent. HeidelbergCement AG, Coloplast A/S, and Lundin Petroleum AB jumped after posting results that beat analysts' estimates. Bank of Ireland Plc tumbled 18 percent as the cost of insuring Irish sovereign debt surged to a record.
The Stoxx Europe 600 Index rose 2.3 percent to 271.97 this week, the biggest gain in two months. The measure has rallied 17 percent since its 2010 low in May, closing the week at the highest level since April 15, amid better-than-estimated earnings and speculation policymakers in the U.S. and elsewhere will step up efforts to bolster the recovery including buying securities with newly created money, a tactic known as quantitative easing.
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National benchmark indexes rose in 13 out of 18 western European markets. Germany's DAX Index gained 2.3 percent, while the U.K.'s FTSE 100 Index increased 3.5 percent. France's CAC 40 Index advanced 2.2 percent.
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US
U.S. Stocks Rally, Driving Dow to Pre-Lehman-Bankruptcy Levels
Nov. 6 (Bloomberg) -- U.S. stocks rallied for a fifth week, sending the Dow Jones Industrial Average to its highest level since before Lehman Brothers Holdings Inc.'s 2008 bankruptcy, as the Federal Reserve announced a $600 billion bond-purchase plan to boost growth and employment increased more than forecast.
JPMorgan Chase & Co. and Bank of America Corp. jumped at least 8 percent amid speculation the Fed will let strong banks boost dividends or buybacks. Alcoa Inc., American Express Co. and Caterpillar Inc. jumped more than 6.2 percent to lead the Dow's gain. Starbucks Corp. and Qualcomm Inc. advanced as earnings beat estimates.
The Standard & Poor's 500 Index climbed 3.6 percent to a two-year high of 1,225.85 this week. The Dow increased 325.59 points, or 2.9 percent, to 11,444.08. The S&P 500 rose every day this week, the first time that's happened in a five-day week since March. Both measures have increased in at least 8 of the past 10 weeks.
"Everybody has been whispering about the Fed's purchases, but after the announcement, the market seemed to think it was all very new news," said Wasif Latif, vice president of equity investments at USAA, which oversees $45 billion in San Antonio. "When the $600 billion figure came out, the participants who had doubted the Fed will purchase assets threw in the towel and didn't want to be left behind."
The S&P 500 has surged almost 20 percent since July 2 and the Dow erased all its losses that followed Lehman's 2008 bankruptcy. The Citigroup Economic Surprise index for the U.S., which gauges the rate at which economic data is exceeding or trailing economists' estimates, has improved 11 straight days and turned positive on Oct. 29.
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Misc
Mongolia's spy chief: invited to Number 10, detained in Wandsworth
Echoes of Pinochet as country's top intelligence officer is arrested during official visit to Britain over alleged kidnap
November 5 (The Independent, UK) When Mongolia's spy chief stepped off an Aeroflot flight into Heathrow a few weeks ago, he expected a welcome befitting a foreign dignitary arriving for high-level talks with the British government on a new era of intelligence co-operation. After all, preparations for his visit had included an invitation to meet Downing Street's National Security Adviser.
But rather than being ushered through Heathrow's VIP lounge for talks in Whitehall's inner sanctum, the chief executive of Mongolia's National Security Council and the one-time head of its security service was met by Scotland Yard detectives armed with an international warrant for his arrest.
Bat Khurts, Mongolia's most senior intelligence officer, is currently languishing in a cell in London's Wandsworth prison while awaiting extradition proceedings. It is an extraordinary twist to a tale of alleged trans-border kidnap and skulduggery that began seven years ago in a McDonald's car park in a French port – and has led to a diplomatic row.
Mr Khurts was arrested for the alleged drugging and rendition of a refugee who was later tortured in a Mongolian prison. Documents obtained by The Independent show that lawyers for Mr Khurts accuse Foreign Office officials of "misusing ordinary diplomatic courtesies" to facilitate the Mongolian father-of-three's arrest. Court papers allege that the Foreign Office contacted the UK Serious and Organised Crime Agency (Soca) with full details of Mr Khurts' arrival date to enable his detention on an outstanding European arrest warrant six weeks ago.
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Related article:
- Mongolian spymaster invited to Britain and arrested at airport over kidnapping claim – CP, November 6, 2010
<Mogi & Friends Fund A/C>
58% and New Target Acquired
Mogi & Friends Fund is a tiny fund of US$6,000 I created with a few friends to put my own (and a few friends') money where my mouth (just mine) is.
November 6 (Mogi) My tiny little fund is a whisker away from reaching $10K. Friday was good day for "Mogi & Friends".
This is critical moment for the fund. The fund has put a subscription for $10K worth of IPO shares in a new float CPS Securities is doing without actually having the cash. I'm only consoled by the fact that the fund will not have to cough up the cash that soon. Either I'll have to pray it goes up further, or I'll have to inject new cash into the fund. So 2 different scenarios: 1. The fund shoots up higher than $10K. in this case I'll have to separate $10K into the new float. And start accepting new investors and invest elsewhere with the remaining amount. 2. Fund does not reach 10K and I'll have to inject new cash with possibly new investors.
Either way Mogi needs more Friends.
Mogi
"Mogi" Munkhdul Badral
Executive Director
Mobile: +976-99996779
Suite 906, Central Tower
Sukhbaatar District, Ulaanbaatar
Mongolia
CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.
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