UK Prime Minister Boris Johnson. 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 0.1 per cent yesterday.
A2 Milk led the Index upwards, rising 12.3 per cent with a stronger-than-expected interim result. While revenue and net profit after tax declined, these falls were less than expected by the market. Revenue declined 2.0 per cent to $661 million and net profit after tax declined 53 per cent to $56 million. Management expects growth in both the English and China Label in the second half of financial year 2022.
Chorus increased 8.7 per cent, also releasing its first half financial year 2022 result. For the half, underlying earnings before interest, tax, depreciation and amortisation was $329 million and dividend guidance for financial year 2022 increased from 26 cents per share to 35 cents per share.
Synlait Milk rose 2.7 per cent. As a2 Milk's largest provider, it likely benefitted off a2 Milk's positively received result.
NZX declined 4.7 per cent, losing some of last week's gains. NZX released its financial year 2021 result on Thursday.
Investore Property fell 3.3 per cent and Fisher and Paykel Healthcare declined 2.8 per cent.
The Government announced a maximum of $24,000 will be made available for businesses struggling during the red light setting and the Omicron outbreak. Each payment is $4000 per business plus $400 per full-time employee up to a maximum of 50 full-time employees. "Firms must show a 40 per cent revenue drop in seven consecutive days within the six weeks prior to the shift to Phase 2 of the Omicron response on February 15" said the Minister of Finance.
International
US
The US markets were closed on Monday for President's Day.
Rest of the World
The major Asian indices generally underperformed overnight. The Nikkei declined 0.8 per cent, the Hang Seng closed 0.7 per cent lower, while the Shanghai Composite remained unchanged at 3,490.61 points. Asian market performance was likely linked to the tensions in the Ukraine which is impacting markets around the globe.
French President Emmanuel Macron has been in diplomatic talks with leaders of all parties involved, as many are still hoping to find a diplomatic solution. US President Joe Biden has 'in principle' agreed to meet with Russian President Vladimir Putin as long as Russia holds off on an invasion of Ukraine.
On Monday, the UK Prime Minister Boris Johnson announced his government's 'living with Covid' plan. This means a move away from legal government restrictions towards personal responsibility. Self-isolation for people who test positive will no longer be mandated, however, he is asking people to be considerate and not put others at risk. Free universal testing will end in England on 1 April 2022, although the most vulnerable are said to still be able to receive free testing going forward. Johnson received critique form Labour leader Sir Keir Starmer who described the announcement as unclear and chaotic. This announcement comes one day after Queen Elizabeth II tests positive for Covid and is said to display mild symptoms.
Commodities
Gold edged slightly lower, down 0.1 per cent to US$1,898.50 per ounce.
Oil increased by 1.2 per cent to US$92.16 per barrel.
Cryptocurrencies were performing well, with Bitcoin rising 1.1 per cent and Ethereum gaining 3.8 per cent.
The US 10-year treasury rate was last yielding 1.927 per cent.
Australia
The ASX 200 closed up 0.2 per cent on Monday at 7,236.9 points.
The day's best performing sectors included utilities (+4.2 per cent) and consumer staples (+2.4 per cent) In contrast, technology (-2.8 per cent) and healthcare (-1.1 per cent) were the laggard sectors.
Leading the headlines, the Australian Government has reserved its right to potentially block an increased takeover offer for electricity company AGL Energy, on concerns new ownership's actions could disrupt the country's electricity supply. As it stands, Canada based Brookfield Asset Management and billionaire Mike Cannon-Brookes are paired suiters with an offer of A$5 billion to buy AGL, and plan to replace all of AGL's coal fired power generation with renewable methods, making it a net zero emitter by 2035. Prime Minister Scott Morrison and his Government are skeptical coal free electricity production from AGL would be able to provide a dependable supply of electricity to Australian homes, leading to higher electricity prices. AGL Energy traded up 10.5 per cent (the days largest gainer) on speculation a higher takeover offer could soon be placed.
Rounding out the single stock winners' podium were hospitality and liquor business Endeavor Group (+10.1 per cent) and QBE Insurance (+4.8 per cent).
Investors reacted to a seemingly favorable set of half year results from Endeavor, which included a profit of A$311 million. On the other hand, QBE bounced back after a poor result on Friday following its own full year earnings announcement.
Reporting season was again the feature for some of the larger downward movements during Monday's trading. Tyro Payments had a dismal session to lead the decliners as the fintech company fell 25.9 per cent. The market did not take kindly to Tyro reporting a loss of A$11.2 million (normalized) for the half year. Super Retail Group, parent to companies like Rebel and Macpac, fell (-9.5 per cent) on an underwhelming set of half-year results. Lastly, online gambling platform Pointsbet Holdings had a volatile day (-11.1 per cent) ahead of its half year result this Friday.
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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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