The S&P/ASX All Ordinaries Accumulation Index closed up 0.4% for the week. The resources and mining services sectors continue to drive the market higher.
Globally, continued investor optimism saw markets post gains this week with the S&P 500 Index in the United States reaching fresh record highs, while Hong Kong’s Hang Seng Index pushed through 30,000 points for the first time in a decade.
In this week's report, we discuss Mineral Resources and Boom Logistics
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Mineral Resources in its element
On Wednesday, Mineral Resources (ASX: MIN) held its annual general meeting, upgrading production guidance for its lithium project Wodgina, which was significantly ahead of the market’s expectations. The company also announced increased crushing capacity in its mining services division. Shares in Mineral Resources closed up 15.6% for the week. We own Mineral Resources as a market-driven investment in WAM Capital, WAM Leaders, WAM Active and Century Australia.
Boom Logistics lifts expectations
Crane rental business Boom Logistics (ASX: BOL) released a trading update on Thursday, reporting a 78% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to $8 million for the first four months of FY2018, compared to $10.6 million EBITDA reported for the whole of last financial year. Boom is currently trading at a 30% discount to its net tangible assets (NTA) and we expect the company will benefit from its exposure to the improving resources and construction industry. Shares in Boom closed up 20.6% for the week. We own Boom Logistics as a market-driven investment in WAM Microcap.