Jarden Brief: Discovery, Tesla and Mastercard rise

Discovery delivered a strong result yesterday. Photo / Getty Images

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

New Zealand:

The S&P/NZX 50 lost 0.5 per cent during Wednesday's trading, finishing at 13,022.5 points.

Kiwi icon Sir Peter Jackson and his digital effects business Weta Workshop lead Wednesday's news flow with an announcement they would be selling Weta's assets to New York Stock Exchange listed gaming tech company Unity Software. Sir Peter and his partner Dame Fran Walsh are the current majority owners of Weta, and deal is reportedly worth more than US$1.6bn in both cash and Unity shares.

Sector gains were led by financials and technology, with gains of 0.7 and 0.6 per cent, respectively. On the flipside, healthcare (-1.6 per cent) and non-cyclicals (-1.3 per cent) were the laggard sectors in the market.

Goodman Property was the day's biggest winner, up 2.0 per cent. Sky Network Television bounced back after a drop on Tuesday (-4.3 per cent), finishing Wednesday up 1.7 per cent. Lastly, Napier Port (+1.6 per cent) continued its stellar run after recently upgrading its earnings guidance for 2022.

Digital church payment platform Pushpay Holdings declined 13.0 per cent after a poor first half result. Actual HY22 and forecasted FY22 EBITDA were below investor expectations, appearing to leave investors concerned about the firm's prospects. Biotech company Pacific Edge and retirement village operator Ryman Healthcare rounded off the decliners of the day, each down 2.8 and 2.2 per cent.

Other news included quarterly house price index updates from Quotable Value, which found the average New Zealand house price increased by over $50,000 since the end of July, now valued at over $1 million. Queenstown Lakes, Auckland, Tauranga and Christchurch were the largest contributors to the 5 per cent overall increase for the three-month period to October.

International Markets:
US:

It was a down day for the United States' headline index, as the S&P 500 fell 0.2 per cent. The NASDAQ was down 0.5 per cent, and the Dow Jones was almost flat.

The top sectors on the day were consumer discretionary and utilities, respectively up 0.8 and 0.5 per cent.

Energy (down 1.5 per cent) and information technology (down 0.7 per cent) were the sectors most responsible for lowering the S&P 500 during the session's trading.

The market leading stocks included television content provider and media company Discovery Inc, electric vehicle manufacturer Tesla Inc, and payments solutions provider Mastercard Inc, each up 4.7, 4.2, and 3.9 per cent.

Discovery Inc announced its third quarter results. The company delivered 32 per cent year-on-year quarterly revenue growth and exceeded guidance. Revenue guidance for fiscal year ending 2021 was increased. The company also announced significant new client wins across the platform, setting strong foundations for financial performance in fiscal year ending 2022.

The biggest decliner on the day was self-care and wellness solutions provider Perrigo Company plc (down 12.3 per cent), followed by network security company Fortinet Inc (down 3.7 per cent), and oil and gas explorer and producer Occidental Petroleum Corp (down 3.1 per cent).

Perrigo Company plc reported third-quarter 2021 adjusted earnings of 45 cents per share, which missed the Zacks Consensus Estimate of 65 cents. Earnings decreased 25 per cent year-over-year due to higher input costs and two product recalls.

Rest of the World Markets:

The popular Asian indices were generally down at the time of writing. The Shanghai index (China) was down 0.4 per cent; the Shenzhen index (China) was down 0.3 per cent; the Nikkei 225 (Japan) was down 0.6 per cent; and the Hang Seng (Hong Kong) index was up 0.7 per cent.

Commodities:

It was a turbulent session for precious metals. Gold was trading at US$1,853.21 per ounce (up 1.2 per cent); while silver was trading at US$24.8 per ounce (up 2.3 per cent). For the industrial metals, the closest dated iron ore future was trading at US$91.98 per MT (flat for the session); the closest dated copper future was trading at US$9,623.19 per KG (down 0.3 per cent) and the closest dated WTI oil future was trading at US$82.13 per MT (down 2.4 per cent).

It has been a relatively quiet session for crypto, with Bitcoin trading at US$68,639.33 (up 1.4 per cent) and Ethereum trading at US$4,844.39 (up 0.9 per cent). The US 10-year treasury bond yield was unchanged at 1.4491 per cent.

Australian Markets:

The ASX 200 fell a slim 0.1 per cent yesterday, led downwards by the basic materials and energy sectors, respectively falling 1.6 and 1.0 per cent.

Upwards pressure came from financials and utilities, each rising 0.7 per cent.

Chalice Mining increased 4.9 per cent, reaching a record high and was the top performer for a second day. This comes after a 28.5 per cent increase on Tuesday, after it released a maiden mineral resource estimate for the Gonneville deposit in Western Australia, finding the largest nickel sulphide discovery globally in more than 20 years.

United Malt Group rose 4.6 per cent. It is seen as a beneficiary of Covid-19 recovery , with a greater alcohol consumption expected following eased restrictions.

National Australia Bank increased 4.4 per cent, likely on the back of multiple increases in brokerage target prices following its results release. Potential future cash rate increases will likely support banks in increasing earnings.

BlueScope Steel declined 5.8 per cent. The Chinese steel price correction, with shrinking steel prices, has affected BlueScope Steel negatively.

Nearmap fell 4.9 per cent. The location intelligence company eased off from gains seen since the beginning of October.

Orocobre declined 4.7 per cent, the global lithium carbonate supplier also came off recent highs.

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Disclaimer: This Jarden Brief is provided for general information purposes only. It reflects views and research available 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 Jarden 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 financial advice disclosure statement is available free of charge at https://www.jarden.co.nz/our-services/wealth-management/financial-advice-provider-disclosure-statement/ Full disclaimer available at: https://www.jarden.co.nz/wealth-sales-and-research-disclaimera>