Airbnb had a strong day on the market. Photo / Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand
New Zealand equities were in the green yesterday with the S&P/NZX 50 trading up by 0.1 per cent to 13,064.1 points at the close.
Sector gains included consumer non-cyclicals and industrials, each leading the way with 1.8 and 0.4 per cent increases, respectively.
Overall index movements were well supported by the single stock winner - retirement village operator Summerset Group Holdings. Summerset finished the day up 4.6 per cent as investors reacted to an impressive first half result where earnings were up 67.5 per cent in comparison to a Covid-19 impacted 2020.
Similarly, Pushpay Holdings traded favourably (up 4.2 per cent). The faith-based payment service provider announced it had acquired Resi Media (a live stream provider to the US faith sector) for an acquisition price of US$150 million.
On the other hand, markets were weighed down by both the healthcare and technology sectors, which fell 0.5 and 0.2 per cent at Tuesday's close.
The underperforming single stocks yesterday were Meridian Energy and Chorus, who finished lower by 2.5 per cent each.
International
Continued positive earnings releases fueled market optimism, pushing US indices to new highs. The S&P 500 (+0.3 per cent) reached as much as 4,492.11 points during the session, the NASDAQ (+0.5 per cent) cracked the 15,000-point mark, and the DJIA increased by 0.3 per cent.
Energy (+1.6 per cent) and consumer discretionary (+0.9 per cent) were the best performing sectors, at the time of writing. Consumer staples and real estate underperformed, each decreasing by 0.6 per cent.
The top gainer of the session was the electronics retailer Best Buy (+10.0 per cent). The company reported its second quarter earnings results which showed a healthy 20.0 per cent jump in sales to US$11.85 billion, and earnings per share of US$2.98 per share, the result exceeding analysts' expectations. The increased demand for new and better technology for people to work and go to school from home, helped propel Best Buy to be one of the beneficiaries of the pandemic. The company also lifted its forecast for the second half of the year.
Wynn Resorts (+7.2 per cent) and Las Vegas Sands (+7.0 per cent) - both developers, owners, and operators of destination resorts - benefitted from positive market sentiment about the economy, which is looking likely to open up despite increased Covid-19 cases, thanks to vaccination rollouts across the US.
Seagate Technology Holdings was booking the biggest losses, down 6.2 per cent.
Vaccine producers Moderna (-5.6 per cent) and Pfizer (-3.1 per cent) underperformed after the former rallied on the back of its approval news the day before.
Airbnb's (+8.8 per cent) CEO Brian Chesky tweeted on Tuesday that the company will start housing 20,000 Afghan refugees around the world. Airbnb will pay for those refugees to stay in properties listed on its platform.
Rest of the World
The major Asian indices were all in the black overnight. The Hang Seng made the biggest gains, up 2.5 per cent, the Shanghai index rose 1.1 per cent, and the Nikkei both increased by 0.9 per cent.
Chinese electric carmaker Xpeng (+2.0 per cent) started exporting its P7 sedan to Norway on Tuesday, kicking off its international expansion. The company also plans to establish a full-scale Norwegian operation, including customer experience and charging facilities.
Commodities
Gold continued its positive momentum, up 0.1 per cent to US$1,807.10 per ounce.
Likewise, oil rallied a further 3.0 per cent to US$67.65 per barrel.
Cryptocurrencies were underperforming across the board, with Bitcoin decreasing 2.3 per cent and Ethereum declining 3.9 per cent.
The US 10-year treasury rate was yielding 1.285 per cent this morning.
Australia
In Australian Markets, the ASX rose a slim 0.2 per cent yesterday. Covid-19 new case numbers in New South Wales dropped below 800 to 753 yesterday, a trend which Australians will be hoping continues.
Energy and materials were outperforming sectors, rising 2.8 and 0.8 per cent, respectively.
On the other hand, consumer staples and telecommunications services dipped, down 1.2 and 1.0 per cent, respectively.
Healthcare company Nanosonics surged 21.9 per cent. Its full year results release was one canonised by rising sales (up 3.0 per cent to A$103.1 million) and a smaller loss than expected (down 15.4 per cent to A$8.6 million). The guidance of 20 per cent plus sales growth for financial year 2022 saw investors respond by bidding the stock up throughout the session.
Telecommunications company Uniti Group rose 8.4 per cent on the back of its full year results release. Uniti Group had a 175 per cent increase in revenue (to A$159.9 million), and an 83 per cent increase in net profit (to A$29.19 million) in financial year 2021.
Kogan.com fell 15.8 per cent. Further to several profit downgrades this year, the online retailer experienced a significant 86.8 per cent fall in profit (to A$3.5 million). The key factor Kogan.com outlined for this fall was excessive inventory following unmet sales expectations after high sales during the peak of the Covid-19 pandemic in Australia last year. The performance was clearly worse than investors expected, with a sell-down occurring yesterday.
Monadelphous Group declined by 14.4 per cent. The engineering group cited an 'unprecedented' skills shortage in their full year results release as hampering outlook for future revenue. This saw a share price decline despite an 18 per cent lift in revenue (to AUS$1.95 billion) and a 29 per cent increase in net profit after tax (to AUS$47.1 million).
• 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>
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