Market Update: A Walk Through Australian Stock Market On October 31, 2019

  • Oct 31, 2019 AEDT
  • Team Kalkine
Market Update: A Walk Through Australian Stock Market On October 31, 2019

As the market participants are aware, global economic uncertainties as well as health of global economy influence the performance of Australian economy and Australian equities. In the event of slowdown, investors might decide to sell their equity holdings and opt for safer asset classes.

On 31st October 2019, S&P/ASX200 ended the session in red, as the index experienced a decline of 26.1 points and closed the session at 6663.4. On the same day, All Ordinaries also ended in red and settled at 6772.9 after declining by 21.8 points or 0.3%. We would now have a look at the stocks which ended in green on Australian Securities Exchange (or ASX).

On 31st October 2019, Pilbara Minerals Limited (ASX: PLS) closed the trading session at A$0.325 per share, with a rise of 8.333%. On the same trading session, Costa Group Holdings Limited (ASX: CGC) closed by witnessing a rise of 8.365% and the stock price settled at A$2.850 per share.

We have previously written about some stocks and we advise that the readers should have a quick glance at it could be beneficial. Recently, we provided some useful information on CGC, CIM, GMA and AGL. We advise the readers to have a quick look at the information provided. To read, please click here.

Pilbara Minerals Limited’s First Shipment to China’s Great Wall Motor Company

Pilbara Minerals Limited (ASX: PLS) has recently updated the market with the results of September 2019 quarter, unveiling to have secured strategic investment from China’s largest EV battery manufacturer, CATL, as part of an A$111.5M equity raising in order to support its long-term growth strategy. The company wrapped up its first shipment in August to China’s Great Wall Motor Company, pursuant to the new offtake agreement for 20,000 dmt per annum over a period of around 6 years.

The company continued its focus on further plant optimisation/improvement works, as well as the draw-down of stocks. The Board of Pilbara Minerals elected not to pursue the sale of minority interest in the Pilgangoora Project in a softening market, despite the strong interest from a number of credible parties. As at 30th September 2019, cash balance of the company stood at A$60.9 million. It added that subsequent to quarter-end, the company received an additional cash of A$70 million from investors after the successful completion of the equity raising.

CGC Completes Institutional Entitlement Offer

Costa Group Holdings Limited (ASX: CGC) through a release dated 30th October 2019 announced that it has successfully completed its Institutional Entitlement Offer and raised around $87 million. As per the release, the Institutional Entitlement Offer secured robust support from the eligible Costa institutional shareholders, who took up circa 88% of their entitlements. It was mentioned in the release that the equity raising would strengthen the company’s balance sheet risk and ensure that CGC has an appropriate capital structure in place to underpin the continuation of the CGC’s growth strategy considering the recent trading and market uncertainty.

CGC Daily Technical Chart (Source: Thomson Reuters)

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