Jarden Brief: Dating app Bumble soars after market listing

The market welcomed the addition of Bumble. Photo / Getty Images

Keeping you up to date with the latest market moves, in association with Investment firm Jarden

New Zealand

The S&P NZ50 finished the day down 0.5 per cent.

The best performing sector on the day was Communication Services (+0.5 per cent), followed by Financials (+0.4 per cent). Meanwhile, the utilities sector (-1.1 per cent) led the market down, while Tech (-0.9 per cent) also had a poor showing.

The best performing company on the day was aquaculture company Sanford, which climbed 4.1 per cent. Investors may have believed that the reaction to yesterday's news concerning a temporary restriction of exports to China had sparked an overzealous sell off.

Fast food chain franchisor and operator Restaurant Brands, which gained 3.5 per cent, and retailer generator Mercury Energy, which jumped 2.8 per cent, rounded out the best performers on the day.

Dual-listed telecommunications network operator Telstra (up 2.6 per cent) delivered its results for the first half of the financial year 2021. The result featured total income of $12 billion and net profit after tax of $1.1 billion. An interim dividend of eight cents per share is to be paid with a final dividend of the same amount expected for the second half of the year. This represents a dividend yield of circa 4.6 per cent on its close price. Full-year revenue is expected to fall between $22.6 – $23.2 billion, down from $23.2 – $25.1 billion.

The company also announced its intentions to transition to full ownership of its Australian brick and mortar stores. Owner and operated stores presently stand at 67, with 166 run by independent licensees and a further 104 operated by Vita Group limited.

Hallensteins Glassons Group (down 1.4 per cent) announced that a reshuffle in its executive team. Group Managing Director, Mary Devine, would be stepping down and reverting to a Non-Executive Directorial role while Stuart Duncan will make the step up from his current position as Group Chief Operating Officer to replace her. Additionally, present Buying Manager Jason Burrow has been promoted to CEO for Hallensteins.

The worst performing company on the day was movie industry software developer Vista Group, down 5.6 percent. Gentailer Meridian Energy continued see a sell off, falling 4.4 percent, and retirement village operator Ryman Healthcare, down 2.5 percent, rounded out the worst performers on the day.

International
US Markets:

At time of writing, US markets were slightly down with the DJIA down 0.4 per cent, the S&P 500 down 0.2 per cent and the NASDAQ unchanged.

All sectors were in the red except for Technology (+0.6 per cent), which steadied the broader index through its hefty weighting. Energy (-3.1 per cent), Industrials (-0.9 per cent) and Financials (-0.8 per cent) led the market down.

Social dating app Bumble has soared in its IPO, rapidly climbing to US$77.07 per share – a 77 per cent gain from its IPO price of $43. While the stock has now settled back to US$71.10, investors who bought into the IPO are unlikely to complain. Following its debut Bumble is now valued over US$13 billion at current stock prices – with the recent market craze for tech stocks definitely a factor in its valuation.

Bumble generated US$376.6 million in revenue in the first nine months of 2020, and a net loss of US$84.1 million. Meanwhile, Bumble's main competitor is Match Group – the US$45.5 billion dating app giant which owns Hinge, Tinder OkCupid and Match.

Asian markets:

Asian markets were up again to close out Thursday evening, albeit with slowing momentum coming into Chinese New Year. The Shanghai index climbed 1.4 per cent, the

Nikkei was up 0.2 per cent and the Hangseng advanced 0.5 per cent.

Commodities:

Gold lost some momentum, falling 0.1 per cent to US$1,825.20 per ounce while oil was down 0.6 per cent to US$58.36. Bitcoin has surged past US$48,000 per coin, a second big rally after Bank of New York Mellon said it would provide custody services for cryptocurrencies and other digital assets.

Australia

The S&P ASX200 finished the day down 0.1 per cent.

The best performing sector on the day was Communication Services, rising 0.9 per cent, followed by Materials, which jumped 0.6 per cent. Meanwhile, the market was led down by Tech, falling 2.1 per cent, and Consumer Staples, which lost 1.0 per cent.

It was a good day for companies with commodity exposure as diversified mining company Newcrest Mining gained 4.1 per cent and coal producer company Whitehaven Coal rose 3.3 per cent.

With iron prices shooting skywards over the last few months, Australian ore miners have watched their stock prices react accordingly. However, consulting company Capital Economics expects iron prices, currently around AU$170 per tonne, to fall to around AU$100 per tonne by the end of the year. Capital Economics is forecasting a slowdown in demand growth from China. It also foresees that new restrictions on loans to the property sector will curb demand for steel, which will decrease demand for iron.

Additionally, supply restrictions caused by depressed production out of South America are projected to decrease, leading to a situation where increasing supply meets decreasing demand.

Following sanctions from China, commodity storage and logistics company Graincorp (up 0.9 per cent) has increased the number of nations it trades with to around 50. Large Harvests in New South Wales and strong international demand underlies expectations that net profit after tax will fall between AU$60 and AU$85 million. This compares favourably to an underlying after-tax loss of AU$16 million last year.

Financial services company AMP was the worst performer on the day, down 11.0 per cent. The company's full-year results were disappointing; underlying net profit after tax was AU$295 million, down from AU$439 million last year. Australian wealth division funds under management were down 8 per cent, while AMP Capital funds under management were down 7 per cent. Perhaps the most worrying news was the announcement that Ares Management had withdrawn its offer for the wealth division, a key catalyst for the stock price last year.

The second worst performing company on the day was aerial imagery technology and location data company Nearmap, which fell 7.3 per cent after short-seller J Capital published a damning report criticising Nearmap's US business.

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Disclaimer: This Morning Brief has been prepared in good faith and reflects opinions and views at the time of publication, using external sources, systems and other data and information we believe to be accurate, complete and reliable at the time of preparation. We make no representation or warranty as to the accuracy, correctness and completeness of that information, and will not be liable or responsible for any error or omission. This Morning Brief is not to be relied upon as a basis for making any investment decision. Please seek specific investment advice before making any investment decision. Jarden Securities Limited is an NZX Firm, a broker disclosure statement is available free of charge at www.jarden.co.nz. Jarden is not a registered bank in New Zealand. Full disclaimer available at: https://www.jarden.co.nz/limitations-and-disclaimer