Oreninc Index Falls to Reality
The Oreninc Index fell back down to reality for the week ending May 21, 2015. Total dollars announced fell to $104.6m, a two-week low. Four brokered financings were announced for $76.4m, a three-week low; three bought-deal financings were announced for $61.4m, a two-week low.
Deal-making was slow for the week, with the most notable news being the commencement of trading of South32 Limited (ASX:S32), BHP Billiton Ltd.’s (NYSE:BHP) recently spun-out mining producer. Commodities had a down week with gold falling sharply, ending the week just above $1,200 an ounce, and iron ore falling after a couple of good straight weeks.
While it is disappointing that the Index’s performance went down and commodity prices had such a rough week, the five-week average increased to its highest level in 31 weeks. Given the state of the industry, that is as encouraging sign as we could hope for heading into the summer months.