Negative headlines have weighed heavy on the cryptocurrency. Photo / File
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand
The NZX50 erased Monday's gains with a 0.7 per cent decline yesterday, led by utilities, down 1.5 per cent, and consumer cyclicals, down 1.4 per cent.
The only sector to rise was technology, up 1.4 per cent.
Spark was the best performing stock of the day, recovering 2.4 per cent after seeing a large quantity sold off in the last few weeks. Meanwhile retirement village operator Ryman Healthcare was another outperformer, increasing 2 per cent during yesterday's session.
An Auckland International Airport worker has tested positive for Covid-19 despite being fully vaccinated, just two days after the opening of the trans-Tasman bubble. The case is unlikely to affect the bubble given its clear link to the border. The Australian Health Minister has signalled no intention to close the border, saying it has 'full confidence' NZ will be able to contain the new case.
Napier Port was the worst performer of the index yesterday, falling 4.2 per cent. This represents a reduction in the gains made on Friday when Napier Port upgraded its earnings guidance. Napier Port now expects their full year 2021 operating earnings to be between $39 - $42 million, up from $34 - $38 million. This comes off the back of a sustained recovery in log cargo earnings and a 17.1 per cent increase in bulk cargo volumes to 31 March 2021, compared to the same period in the previous year.
Listed property vehicle Argosy Property was also in the red with a 3.9 per cent decline.
NZME (-3.7 per cent) was dealt a $100,000 fine yesterday after accepting it breached the NZX's continuous disclosure rules. $80,000 of the fine relates to the attempted purchase of Stuff last year, with announcements on the failed purchase deemed "incomplete and misleading". The remaining $20,000 of the fine is on the issue of former chairman Peter Cullinane's resignation before last year's AGM, which was deemed material information, whereby there was "failure to release information about a change in a director promptly and without delay".
Meridian Energy released their third-quarter operating statistics to March 2021 and fell 2.4 per cent yesterday. In the month to 13 April 2021, national hydro storage fell from 70 per cent to 59 per cent of the historical average. This comes as the month had lower than expected rainfall and higher than expected temperatures.
Significantly, Meridian's Waitaki catchment water storage at the end of the third quarter of 2021 was 82 per cent lower than the same time last year. This reduced water storage has translated to 16.5 per cent lower electricity generation and 266 per cent higher price than the end of Q3 last year.
Today Health Minister Andrew Little has unveiled the Government's response to a 'once in a generation' report regarding the country's health sector. It will make changes including replacing all DHBs with one national health body, the creation of a new Māori health authority, as well as setting up a new Public Health agency within the Ministry of Health.
International
US:
Main US indices are trading down this morning after a series of poor first-quarter earnings releases for a number of the index heavyweights. All three of the S&P 500, Nasdaq and Dow Jones Industrial Average fell 1.0, 1.3 and 1.1 per cent at the time of writing.
Outperforming sectors include Utilities and Real Estate which made gains of 1.4 and 1.0 per cent, respectively.
Outperformers were Kansas City Southern (+16.3 per cent) and IT company IBM (+3.8 per cent). Investors reacted favourably to Kansas City receiving a takeover offer, whilst IBM released well-received first-quarter earnings this morning.
On the other hand, markets are weighed down by both the Energy and Financial sectors which have fallen 2.6 and 2.3 per cent at the time of writing.
United Airlines Holdings Inc headed the single stock losers, trading weaker by 9.6 per cent at the time of writing. Joining United was Zions Bancorporation NA, which fell 6.9 per cent. Both companies fell after their first-quarter results were released.
Rest of the world:
In Asia, the Shenzhen traded weaker by 0.1 per cent, the Shanghai Composite was down 0.1 per cent, and the Nikkei slumped to a 2 per cent loss after a worsening Covid situation as well as chatters that Tokyo may go into a tighter state of emergency - which was then confirmed after the close.
Commodities:
At the time of writing, Gold is trading stronger by 0.4 per cent at US$1,777.50 per ounce. WTI crude oil fell after yesterday's strong gains, now priced US$62.61 per barrel with yields also trading weaker, now at 1.562 per cent.
Bitcoin has been in a slump since reaching its record high above US$63,000 last week, currently trading at US$56,262.88 at the time of writing. A string of bad news flow for the cryptocurrency caused a perfect storm over the weekend. Reports include the US Treasury potentially cracking down on the Crypto for its potential use in money laundering, a large sell off from equity holders in Crypto trading platform Coinbase, and a power outage in China's Xinjiang province disrupting Bitcoin mining activity. This led to valuation sitting as low as US$53,000 on Tuesday morning (NZT).
Australia
After a strong prior week, the ASX200 faced a big sell-off in Tuesday's session – falling 0.7 per cent.
This decline was driven by losses made by Information Technology (-1.2 per cent) and Health Care (-1.1 per cent) sectors. The only sector posting gains was Telecommunication Systems (+0.2 per cent).
Mining company Mineral Resources was the best performing stock of the day, increasing 3.0 per cent. Bank of Queensland was next in line, rising 2.7 per cent after publishing a results clarification indicating that earnings per share were slightly better than reported in its first half financial results. Healthcare provider Healius also performed well and increased by 2.5 per cent.
A revision in earnings projection to the bottom end of its A$390 million and A$440 million guidance range sent Challenger's share price tumbling 15.8 per cent. The financial services provider said it would significantly adjust annuity pricing to meet its goals.
Meanwhile, lithium miner Lynas' third quarter result showed a drop in sales revenue from A$119.4 million to A$110 million quarter-on-quarter. The mining company's share price slipped 8.3 per cent. Rounding off the worst performers was computer chip printer Altium Limited, down 5.2 per cent.
Afterpay (-0.8 per cent to A$125.23) is said to plan listing on the NASDAQ in the US. The buy-now-pay-later giant published a strong quarter three performance on Tuesday, with US underlying sales setting a single-month record of A$1 billion in March.
New South Wales police are currently investigating a British scam where customers in Australia are targeted to invest in fake high-yielding bonds. Investors are tricked into thinking they have been contacted by well-known firms like HSBC, Vanguard and PIMCO. Customers are urged to stay vigilant when receiving such offers and not to disclose sensitive information.
• 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-disclaimer
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