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16 December 2016 | Insights

Weekly Review – 16 December 2016

Weekly Review - 16 December 2016

The S&P/ASX 200 took a breather this week, losing 27.72 points (-0.5%) to finish the weeks trade at 5,532.9 points.

Gains made early in the week were swiftly eroded as investors took profits following the U.S. Federal Reserve’s decision to raise interest rates. Investors were quick to sell off their well-performing mining shares, locking in gains from the recent rally across the sector. Gold companies had a particularly bad week, as gold futures lost 2.68% and Newcrest Mining (ASX:NCM) lost 11.56% during the period.

Arguably the biggest news amongst the top 100 companies came from Santos Limited (ASX:STO) who announced a $1.5 billion capital raising. $1 billion of the raise has already been spoken for by institution investors, with current shareholders being offered the remaining $500m though a share purchase plan. The share purchase plan (SPP) gives investors a chance to purchase shares at $4.06 per share or at the volume weighted average price of Santos shares over the five trading days up to the completion of the SPP, less a 2% discount.

The big four banks were mixed in their weekly movement with Commonwealth Bank of Australia (ASX:CBA) gaining 0.48% over the period, ending the week up 39c at $81.06.  Westpac Banking Corp (ASX:WBC) lost 9c (-0.28%) and ANZ Banking Group Limited (ASX: ANZ) gained 11c (0.37%), closing at $32.19 and $29.81 respectively.

In positive news, Small-cap fintech company, Novatti Group (ASX:NOV) announced the successful integration of its TransferBridge platform to enable Zapper customers to make domestic and international airtime top-ups and to pay international bills. Zapper is a leading global in-store merchant payment service provider that replaces the need for traditional credit card terminals.

The integration of TransferBridge with Zapper provides a strong validation of Novatti’s platform, enabling the company to broaden their payment capabilities and to settle a larger volume of international payments. This announcement in conjunction with the recent China payment partnerships highlights the company’s focus on integrating innovative global payment systems into Novatti’s current platform, with the aim increase their transaction revenues across multiple sectors.

Staff at Baker Young conducted a conference call with Novatti’s CEO, Peter Cook, who explained the potential of the recent announcement and what can be expected from the deal in the short term. He spoke of the potential for Novatti to integrate Zapper into Novatti’s other partners, which Baker Young views as further ‘blue-sky’ potential for the junior fin-tech