Global markets were concerned this week that Evergrande might collapse. Photo / Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand
The NZX 50 rallied 0.7 per cent after a busy day in the market yesterday.
Energy and industrials were posting the biggest gains, up 1.8 and 1.2 per cent, respectively. Technology
and real estate edged slightly lower, each down 0.1 per cent.
Fonterra Shareholders' Fund was the top performer yesterday, up 5.3 per cent. Fonterra released its full-year result for 2021 yesterday morning, stating a normalised profit after tax of $588 million, an increase of $190 million.
The dairy co-op's earnings guidance for 2022 is 25-40 cents. Additionally, Fonterra said it is considering a new capital structure plan, which might include an IPO for its Australian business, and a divestment of its Chilean business, Soprole.
Next in line was agri-industrial company Skellerup Holdings, increasing a further 3.8 per cent and continuing its positive run, which kicked off on Tuesday. Rounding out the top performers was retirement village operator Ryman Healthcare, which rose 3.2 per cent to reverse its losses from the previous session.
Energy retailer Genesis Energy was the biggest decliner on Thursday, dropping 2.1 per cent. Agribusiness Scales Corporation declined by 1.5 per cent.
Seafood company Sanford (-1.3 per cent) announced it would be appointing a new chief financial officer, Paul Alston, replacing Kathrine Turner at the end of the month.
In other news, the Reserve Bank of New Zealand announced yesterday that it will proceed to tighten loan-to-value Ratio (LVR) restrictions on lending to owner-occupiers. The goal is "to help control house price inflation and mitigate potential risks to financial stability".
Banks will only be able to lend 10 per cent (previously 20 per cent) for new loans that are above a LVR of 80 per cent, taking effect from November this year.
International
US:
US markets were in the green again this morning at the time of writing, with the S&P 500 up 1.5 per cent, the Nasdaq 1.2 per cent higher, and the Dow Jones Industrial Average trading up 1.7 per cent.
Energy and financials led the index upwards again, gaining 3.6 and 2.9 per cent, respectively.
Devon Energy rose 8.0 per cent and APA rose 7.3 per cent, spurred by WTI Crude Oil prices reaching two-month highs.
Salesforce.com rose 7.3 per cent to a new 52-week high. It raised its full-year 2022 revenue guidance and gave strong 2023 revenue guidance. Real estate was the only sector to decline, down 0.3 per cent. Digital Realty Trust fell 3.1 per cent, with the real estate investment trust likely affected by the recent global property concerns.
Power company Entergy declined by 2.2 per cent and Resmed lost 1.8 per cent.
Rest of the World:
The Hang Seng (Hong Kong) increased by 1.2 per cent, the Shanghai Composite (China) rose by 0.4 per cent, and the Nikkei (Japan) fell 0.7 per cent overnight.
Evergrande shares rose 17.6 per cent, making a partial rebound after falling for several consecutive days. The company appears to have reduced investor anxiety to an extent. However, Evergrande shares have still fallen more than 80 per cent since the start of the year, and any further developments will be closely watched by investors.
Commodities:
Gold fell 0.1 per cent to US$1,750.71 per ounce.
WTI Crude Oil increased by 1.4 per cent to a two-month high, now priced at US$73.25 per barrel, while the 10-year US bond yield trades higher at a 1.406 per cent yield following the Fed announcement. This increased bond yield comes as investors are incorporating the eventual Federal Reserve bond buying taper, signalled bythe outcome of its policy meeting this week.
Cryptocurrency rose again, continuing a volatile week, with Bitcoin trading up 3.1 per cent and Ethereum gaining 4.2 per cent.
Australia
The ASX 200 surged forward 1.2 per cent on Thursday to finish at 7382.9 points with no sectors declining.
The index was buoyed by sector gains from energy and technology, each recording a 3.1 and 2.0 per cent increase, respectively.
Media company News Corp led the way, jumping 8.4 per cent after it announced it would be undertaking a A$1.3bn share buyback, scaling the size of its current buyback (A$0.65bn). Despite the buyback, Chief Executive Robert Thomson said this allocation of capital would do little to deter further M&A activity in the future.
Similarly, coal miner Whitehaven Coal finished Thursday's trading up 7.2 per cent, in line with underlying coal prices.
Against the run of day, manufacturing company Reliance Worldwide lost 2.4 per cent. Resource companies linked with gold production also fared poorly, with Ramelius Resources and Northern Star Resources slipped 1.4 and 1.0 per cent, after a volatile week in the wider commodities sector.
Takeover developments for AusNet services have seen APA group lodge a complaint with the Australian government's Takeovers Panel in an attempt to disrupt rival bidder Brookfield Asset Management's eight-week exclusive due diligence period (from after its first bid). APA bid higher than Brookfield at A$2.60 within 24 hours after Brookfield made its original offer of A$2.50. APA said it had been unjustly locked out from an opportunity to negotiate with AusNet for the duration of the exclusivity period. The matter is under investigation by the Panel.
AusNet finished Thursday up 2.4 per cent, after a couple of rises this week (+19.2 per cent Monday, 9.8 per cent Tuesday).
• 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>
For too long, ‘accident’ has been a blanket term that absolves responsibility.