The US pushed to get as many people vaccinated as possible. Photo / Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand:
The NZX 50 rose again yesterday, up 0.2 per cent.
Industrials and energy were the leading sectors, up 1.4 and 0.6 per cent, respectively.
Sanford surged 21.4 per cent to
its highest level since November 2020. This rise came after the South Island iwi Ngāi Tahu purchased shares at a price of $5.50, a 23.6 per cent premium to its previous close.
Mainfreight rose 4.8 per cent, nudging at $100 throughout the day and priced at $98.52 on close. This followed a well-received trading update centring on the national and international Covid-19 impact. If Mainfreight reaches $100, it will be the NZX's only $100 company.
Scales rose 2.8 per cent, recovering from Monday's 2.3 per cent decline.
Healthcare and real estate were the worst performers, each falling 0.4 per cent.
Synlait Milk and Pacific Edge fell 2.1 per cent. Pacific Edge lost some of the gains made on Monday following the announcement of an application for a dual listing on the ASX.
Heartland Group declined again, down 1.8 per cent following a 2.5 per cent fall on Tuesday.
International Markets:
US:
US Markets are moving forward this morning with the S&P 500 and Nasdaq posting gains of 0.3 and 0.7 per cent while the DJIA remains unchanged.
At the time of writing, leading sectors comprise both utilities and real estate, which have advanced 1.6 and 1.5 per cent respectively.
PVH Corp has led the way with a strong performance so far this morning, up 15.7 per cent at the time of writing. The American clothing company boasts brands including Tommy Hilfiger and Calvin Klein, and traded impressively after reporting earnings results that landed well above market expectations. The company posted US$2.72 earnings per share for the quarter, after analysts expected something closer to US$1.20.
Similarly, Moderna Inc extended gains of 4.3 per cent as the bio-tech company, which supplies one type of Covid-19 vaccines, traded in line with new vaccination data. Data from the Centre for Disease Control (CDC) showed that a third dose of the vaccine administered several months after full inoculation increased overall immunity.
Furthermore, 174 million Americans have been fully vaccinated against the virus, with 440 million individual doses administered across all vaccine types.
On the flip side, utilities (down 1.7 per cent) and financials (down 0.4 per cent) were the laggard sectors at the time of writing.
Weighing down the index was today's largest underperformer AbbVie Inc. The pharmaceutical company traded lower by 7.6 per cent after the Food and Drug Administration (FDA) highlighted risks with one of its staple arthritis drugs. Tech company DXC Technology fell 6.4 per cent after updating its long distance FY24 guidance.
In other news, Kiwi sustainable shoemaker Allbirds has been making moves toward listing on the Nasdaq exchange after officially filing for an IPO (initial public offering). Although boasting over US$200m in sales for 2020, Allbirds reported a net loss of US$26m. A likely motive for the IPO would be to use capital to transform the already large and growing business into a profitable one. Allbirds aims to list on the Nasdaq under the ticker name – BIRD, with initial funding rounds from 2020 valuing the company in excess of US$1.7b.
Rest of the World Markets:
Asian indices finished higher overnight. The Hang Seng, Shanghai Composite, and the Nikkei made gains of 0.6, 0.7, and 1.3 per cent respectively.
Commodities:
Amongst commonly tracked commodities, gold was lower by 0.2 per cent at US$1,814.7 per ounce. WTI crude oil remains relatively stable at US$68.45 per barrel after OPEC agreed to continue their current output policy. The US 10-year treasury yield was unchanged at 1.30 per cent.
Crypto currencies moved higher over a 24-hour period, with Bitcoin modestly up 3.1 per cent to US$48,760.3 while Ethereum jumped 9.0 per cent to 3,718.5.
Australian Markets:
The ASX 200 closed slightly lower, down 0.1 per cent on Wednesday.
Sector performance was a mixed bag, with consumer staples seeing the largest decline, down 1.5 per cent, followed by consumer discretionary, closing 1.2 per cent lower. On the flip side, energy gained 1.3 per cent and financials rose 0.9 per cent.
Nuix was the best performer of the session, increasing 5.5 per cent. The software developer recouped some of the losses made after its earnings announcement on Monday. Next in line was Alumina, rising 4.5 per cent. The mining company continued its upward trend from last week. The education services provider IDP Education also performed well, closing 4.2 per cent higher.
The biggest decliners were led by Blackmores, falling 6.7 per cent. Investors seem to have lost some of last weeks' optimism about the natural health solutions provider.
Mesoblast declined a further 5.7 per cent. The biotechnology company reached a 52-week low yesterday. Rounding out the worst performers of the day was medical device developer, PolyNovo, decreasing 5.4 per cent, correcting some of the gains made in the first half of the week.
Retailer Harvey Norman's share price continued to decline, despite releasing a strong 2021 full year earnings report on Tuesday. The company reported a profit before tax of AU$1.2 billion, which is a 78.8 per cent improvement year-on-year. However, the dividend of 35 cents was below analysts' expectations. The company also announced it would repay AU$6 million of the JobKeeper funds received, which is estimated to be only a third of the total amount received through the scheme. The Australian Labor Party started a campaign shaming big companies that claimed JobKeeper despite making profits during the pandemic.
In other news, a shareholder of the Commonwealth Bank of Australia (+0.9 per cent) has filed a lawsuit against the company with the Federal Court. CBA is being accused of breaching the Paris Agreement around financing decisions made by the company for oil and gas projects. This could set a precedent for shareholders who want to ensure companies deliver on their environmental commitments.
• For more information on the latest market moves, get in touch with Jarden.
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-disclaimera>
Economic recovery is coming but won't solve structural problems.