Tesla has slipped below the US$1 trillion mark. Photo / Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand
The NZX 50 increased 0.4 per cent yesterday, buoyed by the consumer staples and healthcare sectors, rising 1.7 per cent each.
Fisher and Paykel Healthcare was the top performer of the day, rising 4.8 per cent. The company rebounded from its 4.4 per cent decline on Friday, after the US Food and Drug Administration (FDA) provided updates on the recall of Philips' Respironics machines.
Philips, a competitor to Fisher and Paykel Healthcare, had initially hoped to repair its faulty CPAP and BiPAP sleep ventilation and breathing support devices by using a different type of silicone-based foam and return the products to market. However, the US FDA is holding off on granting approval of the new foam – which could increase the opportunity for Fisher and Paykel Healthcare to capitalise on the current market gap.
The a2 Milk Company rose 4.5 per cent ahead of its annual shareholders meeting on Wednesday. Last Thursday 11 November was 'Singles Day'– a sales event, primarily commercialised in China, comparable to Black Friday sales in the US. Investors will keenly await the results of sales in China.
On the flipside, Ryman Healthcare declined 3.5 per cent ahead of its interim result announcement on Friday.
Donations management provider Pushpay Holdings increased 3.4 per cent, recovering slightly after losing more than a fifth of its market capitalisation last week. Investors sold off the stock following the company reporting slower than expected quarterly growth.
The sectors exerting the greatest downwards pressure were technology and consumer cyclicals, both falling 0.7 per cent. Leading the tech sector down was Vista Group International, which fell 2.3 per cent. Despite this, the film software company has risen 52.4 per cent year to date.
The New Zealand Performance of Services Index fell further into contraction during October, down to 44.6 points from 46.5. The survey, which provides an indicator into levels of activity across the country's service sector, showedimpact varied across industries and differed across regions and firm size. The contraction was most felt in Auckland and Otago and in small firms (less than 100 employees), compared to larger ones.
Population growth from migration is at a 10-year low with a net migration gain of just under 800 in the 12 months to September 2021, down from 65,000 in the year prior to September 2020.
International
US
The major US indices started the week off slightly lower, with inflationary pressures hitting new highs last week. At the time of writing the S&P 500 decreased 0.1 per cent, the NASDAQ was down 0.3 per cent, and the Dow Jones Industrial Average was flat at 36,109.5 points.
The single stocks booking the biggest gains on the S&P 500 at the time of writing were discount store operator Dollar Tree (+13.7 per cent), airplane manufacturer Boeing (+5.3 per cent), and medical device producer Resmed (+4.0 per cent).
Dollar Tree seemed to benefit from the news that activist investor Mantle Ridge has built a more than 5.0 per cent stake in the company. Some analysts say this could provide an opportunity to unlock value for shareholders.
Boeing's executive revealed on Sunday that the company is advancing talks with regulators to resume the deliveries of its 787 Dreamliner, after suspending them due to production issues. The executive did not specify a timeframe.
Utilities (+1.1 per cent) and energy (+0.4 per cent) were the best performing sectors this morning. On the flipside, materials (-0.5 per cent) and technology (-0.5 per cent) were dragging the markets lower.
The biggest decliners of the day were interactive entertainment developer Take-Two Interactive Software (-4.6 per cent), and electric car manufacturer Tesla (-4.3 per cent). Digital workspace solutions provider Citrix Systems hit a 52-week low, dropping 4.5 per cent).
Tesla continued its downward trend from last week as CEO Elon Musk continues to sell off his stake in the company following the results of a Twitter poll. The electric car manufacturer's market cap has fallen below US$1 trillion.
Last week an electric vehicle start-up, Rivian (+12.4 per cent), raised US$11.9 billion in the world's largest IPO this year. Shares surged as much as 53 per cent, driving the market capitalisation to more than US$100 billion. Shares were trading around US$145.85 this morning, after initially being offered at US$78 last Wednesday. The company has not recorded any revenue yet but is backed by Ford and Amazon.
Rest of the world
The major Asian indices were a mixed bag overnight. The Nikkei (Japan) rose 0.6 per cent and the Hang Seng (Hong Kong) climbed 0.3 per cent. The Shanghai Composite (China) decreased by 0.2 per cent despite better-than-expected China retail sales growth in October, which was reported at the end of last week. The data showed a 4.9 per cent increase (vs expected 3.5 per cent), a 0.4 per cent addition to the September result.
With the onset of a new Covid-19 wave in Europe, some countries are reintroducing restrictions for parts of the population. In Austria (ATX -0.2 per cent) the Government ordered lockdowns for unvaccinated people in the country. In Germany (DAX +0.2 per cent), there are growing calls to cancel traditional Christmas Markets, as the seven-day incidence surpassed 300 for the first time since the start of the pandemic, with only 67.5 per cent of the population fully vaccinated.
Commodities
Gold traded slightly lower, decreasing by 0.2 per cent to US$1,865.70 per ounce.
Oil declined by 1.2 per cent to US$79.78 per barrel.
Cryptocurrencies generally performed well, at the time of writing, with Bitcoin increasing 0.4 per cent and Ethereum up 1.75 per cent.
The US 10-year treasury rate rose slightly to 1.616 per cent after its slump last week.
Australia
The S&P/ASX 200 traded higher yesterday with the index advancing 0.4 per cent to 7,470.1 points.
Leading sectors comprised of both healthcare and technology, making gains of 1.9 and 1.3 per cent respectively.
Health and Biotech company Mesoblast jumped 11.8 per cent during Monday's trading, after favourable evidence was released about one of the company's products at the American Heart Association conference in the US. Mesoblast's Rexlemestrocel-L therapy was found to have potential benefits in the treatment of chronic heart failure, which some have noted to be a massive breakthrough for the company.
Healthcare company Resmed also had a strong performance (+5.2 per cent). Resmed competes with Phillips in the respirator/ventilator market, and similarly to Fisher and Paykel Healthcare, may see potential benefits from the market gap left by Philips.
On the flipside, energy (-0.2 per cent) and materials (-0.1 per cent) were the laggard sectors at yesterday's close.
Weighing down index performance was the single stock experiencing the biggest decline, telecommunications provider Uniti Group (-2.5 per cent). Joining Uniti was fuel and infrastructure company Ampol (-2.1 per cent).
Rounding out the decliners was Platinum Asset Management, which slipped 2.0 per cent in the wake of its annual general meeting.
In other news, markets were buoyed with ANZ job data showing ads rising 6.2 per cent for the month of October, similar to levels seen prior to the original delta lockdowns. State-wise, results were led by New South Wales, with job ads increasing 17 per cent.
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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
Around 18,500 public servants received a pay rise in the quarter.