The outperformer of yesterday's session was Synlait Milk which rose 4.4 per cent. Another outperformer was Mainfreight, up 4.0 per cent. Mainfreight recorded their full year results earlier in the week.
Fisher & Paykel Healthcare released their full year results yesterday with revenue up 56 per cent to $1.97 billion and net profit rose 82 per cent to $524 million. No guidance was provided for the 2022 financial year with ongoing uncertainty in Covid vaccine rollout and the international Covid situation making it hard to predict when normality will be returned to. Read more here.
Another underperformer was Ryman Healthcare which fell 5.0 per cent, continuing a volatile a week spurred by the previous week's results release.
The Melbourne lockdown could foreshadow hiccups in the wider travel Trans-Tasman bubble success. Victoria was temporarily excluded from the bubble earlier in the week and went into a seven-day lockdown yesterday.
INTERNATIONAL:
US:
American households were sent their third round of stimulus cheques yesterday with the $391billion in total payments likely to have a reasonable follow-on effect into equity markets over the coming weeks. Today, main US indices are trading up with all three of the S&P 500, Nasdaq, and Dow Jones Industrial Average making 0.1, 0.1, and 0.3 per cent gains at the time of writing.
Outperforming sectors include Industrials and Financials which made gains of 1.0 and 0.7 per cent.
Sector gains were buoyed by impressive performances from both General Electric Co (up 6.4 per cent) and Ford Motor Co (up 6 per cent). General traded favourably after announcing on Monday it intends to buy back up to US$2b worth of the company's debt notes, increasing equity holders claims on the business. Ford continued yesterday's momentum after committing to a quicker than anticipated transition toward large scale production of electric vehicles.
On the other hand, markets are weighed down by both the Energy and Technology sectors which have fallen 0.4 and 0.2 per cent at the time of writing. Adding to this downward momentum is discount store company Dollar Tree Inc which has fallen 6.9 per cent to be the market's largest underperformer at the time of writing. Joining Dollar Tree is software company Intuit Inc, down 2.7 per cent, after confirming a quarterly dividend which was slightly below investor expectations.
Rest of the World Markets:
The main Asian indices were also mixed overnight, with the Hang Seng down 0.2 per cent, Shanghai Composite up 0.4 per cent, and the Nikkei down 0.3 per cent.
Gold slipped 0.3 per cent to US$1,895.5 per ounce. WTI Crude oil was up 0.6 per cent to US$66.63 per barrel while US 10-year treasury yields also rose, now trading at 1.6 per cent.
Crypto currencies experienced more regulatory pressure on Wednesday, this time as Iran put a temporary ban on the mining of all crypto. Mining is a process central to the existence of crypto currencies and their blockchain technology, however, it is also highly energy intensive, and has been blamed in part for the various energy shortages throughout Iran's main cities.
Despite this news, Bitcoin and Ethereum have advanced 2.3 per cent each at the time of writing, priced at US$39,166.5 and US$2,795.6 respectively.
Australian Markets:
Victoria has announced its fourth lockdown of the pandemic, after community cases doubled to 26 within 24 hours. It will be a seven-day lockdown, but a lot of people are concerned, since some of the pandemic relief efforts have been wound down. Though the Trans-Tasman bubble has been paused for seven days, industry experts are not yet concerned about any lasting effect on tourism.
The ASX200 closed relatively flat at 7094.90 points, after Thursday's session.
The majority of sectors were in the red, with Utilities (-1.2 per cent) booking the biggest loss. On the flipside, Information Technology gained 1.9 per cent.
The best performing stock of the day was insurance and financial services provider AMP Limited, up 8.5 per cent. The gain came despite the Australian Securities and Investments Commission taking it to court for deducting insurance premiums from the superannuation accounts of more than 2000 dead customers. Next in line was telecommunication services provider TPG Telecom Limited, increasing 8.1 per cent, followed by lithium and tantalum producer Pilbara Minerals Limited, rising 6.2 per cent.
The worst performer of the day was Costa Group Holdings, plummeting 24.1 per cent, after its AGM yesterday revealed that the June-half profits were expected to be only "marginally ahead" compared to the same period last year. The produce supplier also warned about labour shortages among fruit and vegetable pickers since seasonal workers and backpackers are still not able to return due to the pandemic. Fisher & Paykel Healthcare decreased 6.0 per cent, and Domino's Pizza Enterprises was down 4.9 per cent, after Yum! Brands (Pizza Hut owner) announced it would buy the technology company Dragontail Systems for AU$94 million, which Domino's has a strategic relationship with.
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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-disclaimera>
