MOD Resources Limited (MOD) Plunged -10.909% on Feb 6

February 6, 2018 - By Hazel Jackson

Shares of MOD Resources Limited (ASX:MOD) last traded at 0.049, representing a move of -10.909%, or -0.006 per share, on volume of 11.47M shares. After opening the trading day at 0.054, shares of MOD Resources Limited traded in a close range. MOD Resources Limited currently has a total float of 1.90 billion shares and on average sees 3.41 million shares exchange hands each day. The stock now has a 52-week low of 0.033 and high of 0.09.

S&P/ASX 200: Directing Asian Economy Growth

CG Watch has recently named Australia as one of the Asian nations with the best corporate governance, which is essential in carrying out national economic growth prospects. The Australian Securities Exchange (ASX) is the perfect reflection of Australia’s thriving national economy.

It includes companies with perfect liquidity like MOD Resources Limited. The ASX is one of Asia’s leading stock exchanges. As of 2014, it has a market capitalization of A$1.60 trillion with over 2,000 companies listed on it. Its benchmark index is the S&P/ASX 200, which weighs its top 200 stocks on a free-float market capitalization basis.

About the S&P/ASX 200

The S&P/ASX 200 was launched in April 2000, starting at 3,133.30 points. Regardless, it continues from the history of the previous Australian benchmark index, All Ordinaries, which was founded in January 1980. Consequently, the S&P/ASX 200 holds an all-time low of 1,358.50 points, which was recorded in November 1992; and an all-time high of 6,828.70 points, which was posted in November 2007.

The S&P/ASX 200 first touched the 6,000 mark in February 2007 as investors began resorting to safe-haven markets such as the ASX with the looming threat of the 2008 Global Financial Crisis. An ability to transform assets into cash as in case of MOD Resources Limited was highly appreciated by nervous traders. Australia has always been an ideal market for investors because of its low interest rates and compelling corporate governance. Having low interest rates means that investors can better access capital through loans.

S&P/ASX 200 Composition

The components of the S&P/ASX 200 are reviewed by the Index Committee four times a year, particularly every 16th of March, June, September, and December. The Index Committee is a panel with five members that reviews the companies listed on the ASX, the 200 most active of which are then included in the S&P/ASX 200. Sometimes, depending on several factors such as market capitalization, liquidity, among others, less than 200 companies make it to the S&P/ASX 200. And this is the double reason to be proud for such companies as MOD Resources Limited.

In the latest review of the S&P/ASX 200, the Index Committee had dropped six companies and had added six new companies on the coveted index.

As a free-float, market-capitalization-weighted index, the S&P/ASX 200 is quarterly adjusted with respect to the stock prices of frequently traded stocks. This means that stocks held by the government, venture capitalists, and the likes are not reviewed by the Index Committee.

The S&P/ASX 200 has various sectors with the financial sector being the largest as it makes up roughly 40% of the index. It makes up almost 80% of the overall market capitalization in Australia. Representing the top 200 stocks on the ASX, the S&P/ASX 200 is a reliable indicator of the Australian economy.

Needless to point out, investing in the ASX is worth considering. With a cheap borrowing environment complemented by a hot equity market, investors can realize their long-term goals by investing in Australia. At a time when the Asian economy is immensely growing, it is just right to bet on Australia’s growth.

More recent MOD Resources Limited (ASX:MOD) news were published by: Juniorminingnetwork.com which released: “MOD Resources: T3 Pre-Feasibility Study – Robust, Long Life Copper Mine” on January 30, 2018. Also Juniorminingnetwork.com published the news titled: “MOD Resources Drills 4.5 Metres of 4.0% Copper at T3 Project in Botswana” on November 13, 2017. Juniorminingnetwork.com‘s news article titled: “MOD Resources Drills 7.2 Metres of 1.9% Copper at T3 Project in Botswana” with publication date: December 06, 2017 was also an interesting one.

MOD Resources Limited engages in the exploration of copper and silver in Botswana. The company has market cap of $92.90 million. It also explores for gold in New Zealand. It currently has negative earnings. The firm owns a 70% interest in the T3 project, which include 16 licenses covering an area of approximately 7,347 square kilometers located in the Kalahari Copper Belt; and a 100% interest in the Mahumo project consisting of 10 prospecting licenses covering an area of approximately 3,996 square kilometers located in the Kalahari Copper Belt, Botswana.