Tesla had another rough 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
The NZX 50 rose 0.2 per cent yesterday.
SKY Network Television gained 9.8 per cent ahead of its interim 2022 financial year result, due to be released today.
Precinct Properties increased 4.0 per cent and travel management company Serko gained 3.8 per cent.
In contrast, Meridian Energy fell 5.0 per cent following the release of its first-half financial year 2022 result. First-half earnings before interest, tax, depreciation, and amortisation were $394 million, down $1 million on the prior comparable period.
Skellerup declined 3.3 per cent and Tourism Holdings lost Tuesday's gains, down 2.7 per cent.
The Reserve Bank of New Zealand (RBNZ) lifted the official cash rate (OCR) by 25 basis points to 1.0 per cent considering the medium-term outlook for growth and employment, and the upside risks to inflation. More increases are expected in future with the RBNZ now forecasting the OCR to peak higher, above 3.25 per cent by 2024 compared to the November statement peak of 2.5 per cent. The Committee also agreed to commence the gradual reduction of the RBNZ bond holdings under the Large Scale Asset Purchase programme.
As part of the Monetary Policy Statement, the RBNZ also announced they are now forecasting an earlier and sharper period of house price falls in New Zealand and expect in total that house prices may fall about 9.0 per cent over the next nine quarters.
International
US
The major US indices were facing another down day on Thursday morning. The S&P 500 declined 0.3 per cent, the Dow Jones Industrial Average was down 0.1 per cent, and the NASDAQ traded 0.5 per cent lower.
Three sectors were in the green, namely energy (+1.0 per cent), health (+0.5 per cent), and real estate (+0.2 per cent). All other sectors were underperforming, led by consumer discretionary (-1.0 per cent), and utilities (-0.9 per cent).
The single stock best performer on the S&P 500 at the time of writing was Caesars Entertainment, rising 7.5 per cent. The gaming and hospitality company reported a 63 per cent jump in revenue year on year for its fourth quarter which led the company to a narrower loss for the same period. Revenue came in at US$2.59 billion, while the loss for the quarter was US$434 million, down from a quarterly loss of US$555 million a year ago.
Software company Cadence Design Systems also performed well, trading 6.7 per cent higher. The firm delivered better than expected fourth-quarter earnings results. Year-end profit was US$696 million, up from US$590.6 million in 2020. The company also provided a positive outlook for the year ahead.
Rounding out the leader board was casino and racetrack operator Penn National Gaming, up 6.0 per cent, recovering losses made earlier this week.
On the flip side, biotechnology company and vaccine producer Moderna was leading the index lower, decreasing 4.9 per cent. The company is expected to release fourth quarter earnings later tonight. Furthermore, according to Bloomberg, Moderna has signed a deal with Uruguay-based Adium Pharma SA to market the vaccine in 18 countries in Latin America including Brazil and Mexico.
Next in line was Comcast, declining 3.7 per cent. The media and technology company hit a 52-week low.
Joining the bottom movers was broadband connectivity company Charter Communications, trading 3.7 per cent lower.
Tesla also had another down day, losing a further 3.2 per cent.
Later today, the US fourth quarter GDP results are set to be released, as well as new home sales numbers and initial jobless claims numbers.
Rest of the World
The major Asian indices delivered a mixed performance overnight. The Shanghai Composite rose 0.9 per cent, the Nikkei dropped 1.7 per cent, and the Hang Seng closed 0.6 per cent higher.
Volkswagen (-1.8 per cent) and Porsche are currently in advanced discussions regarding a potential IPO of the latter company. A final decision has not yet been made and the management and supervisory board of Volkswagen still have to sign off on the framework agreement with Porsche.
Commodities
Gold had another positive session, gaining 0.2 per cent to US$1,911.30 per ounce.
Oil, on the other hand, edged slightly lower, decreasing 0.2 per cent to US$91.75 per barrel.
Cryptocurrencies were all in the green on Thursday morning. Bitcoin rose 1.8 per cent to US$38,661.35 and Ethereum was up 3.9 per cent to US$2,710.95.
The US 10-year treasury rate was yielding 1.974 per cent, at the time of writing.
Australia
The ASX 200 rebounded on Wednesday, gaining 0.6 per cent, up to 7205.7 points.
Australia joined other large countries around the world as Prime Minister Scott Morrison announced the country would impose a raft of sanctions on Russia, in the wake of its impending invasion of Ukraine.
Eight Russian Federation security council members will be struck with travel bans and financial sanctions, with Morrison indicating sanctions will also be applied to the Russian banking, transport, telecommunications, and energy sectors.
Sector wins were chaired by technology and telecommunications, up 2.2 and 1.9 per cent, respectively. On the other hand, utilities (-0.7 per cent) and real estate (-0.3 per cent) were the laggard sectors against the run of play.
Investment advice company HUB24 led the market to extend a two-day run (+4.8 per cent on Tuesday, and +9.9 per cent on Wednesday) in the wake of posting its first-half results. Similarly, Uranium miner Paladin Energy jumped 9.1 per cent ahead of its half-year earnings release, due out tomorrow.
Media reports relating to speculation over a potential takeover of Australian electricity company AGL Energy, by billionaire Mike Cannon-Brookes and Canada's Brookfield Asset Management, continue to make headlines. Any possible deal would require foreign investment approval.
AGL continues to trade with volatility, down 2.6 per cent on Wednesday.
Notable single stock underperformers included Dominos Pizza (-14.1 per cent) and horticulture company Costa Group (-8.6 per cent). Household pizza staple, Dominos' first-half results came with commentary that same-store sales growth was likely to be less than what was previously guided to, with investors reacting accordingly.
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Disclaimer: The 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. The 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-disclaimer
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