Far East Capital Newsletter
Pendulum swings in favour of uranium but momentum is stalling elsewhere
9 Dec 2017

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Pendulum swings in favour of uranium but momentum is stalling elsewhere

After opening the week up on a positive note the market hit a speed bump on Wednesday, as a number of stocks started to hit resistance levels. Recent falls in the copper price started to get some publicity, having fallen from US$3.16/lb to US$2.96/lb over two weeks. Money started to move away from gold as that commodity continued to fall away with nothing to stimulate it. The oil price was a little more subdued after having risen strongly since July. It adds up to a loss of momentum, for the time being.

In the more specialist areas of uranium and cobalt it has all been positive news and higher prices. Additional production cuts in uranium have led to uptrends forming with uranium company share prices, and cobalt has hit a nine year high with no pullback in sight. A year ago cobalt was US$14/lb. It has just touched US$31.75/lb.

Brokers continue to pump out placements in an end of year rush, which might explain the profit taking in a number of companies as punters free up capital for the new raisings.
Notwithstanding the above, there is nothing obvious that threatens to spoil Christmas this year, and every reason to believe that the favourable market will flow over into the January/February period.
 


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