Medical device company PolyNovo was the ASX 200 champion yesterday (+7.3 per cent), following its half year 2022 results briefing
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand
The NZX 50 closed in the red yesterday, for the first time this week, down 0.9 per cent.
The top movers were Sky Network Television (+2.6 per cent), Stride Property (+2.0 per cent) and Pushpay Holdings (+2.0 per cent).
Sky released an announcement that Accident Compensation Corporation (ACC) had reduced their holdings from 9.4 per cent to 8.3 per cent.
On the other hand, bottom mover Ryman Healthcare decreased by 4.8 per cent.
Fonterra Shareholders' Fund dropped by 4.1 per cent. At the latest Global Dairy Trade auction held overnight on Tuesday, dairy prices reached a record high, rising 5.1 per cent to US$5,065 per tonne. This was the fourth consecutive auction resulting in higher dairy commodity prices.
The average price for whole milk powder rose 5.7 per cent to US$4,757 per tonne. Skim milk powder increased to US$4,481 per tonne, up 4.7 per cent. The continued upwards trend is likely due to the tight milk supply in New Zealand and overseas, and strong global demand.
Auckland Airport fell 3.4 per cent. On Wednesday evening it was announced that NZ's biggest drug bust occurred at Auckland Airport last Thursday, with 613 kilograms of methamphetamine being seized at the border. Although, it is unlikely this affected the company's share price yesterday due to the time of reporting (around market close).
Kathmandu Holdings (-2.2 per cent) announced an impending name change to KMD Brands, with the revamped brand to be launched on 16 March. Kathmandu's ticker will remain KMD on both the NZX and ASX.
Statistics NZ reported an international trade in services deficit for 2021, compared to surpluses in 2020 and 2019. Service exports fell 25.0 per cent, while imports rose only 11.0 per cent. The drop-off in travel over the second quarter of 2020, due to Covid-19 border measures, would likely have been a major driver behind the $5.4 billion deficit.
The NZ Government agreed to a combined effort, alongside 30 other member countries of the International Energy Agency Governing Board to release 60 million barrels of oil from emergency reserves to help constrain oil prices after they hit a new record. The Board's intention is to "send a unified and strong message to global oil markets that there will be no shortfall in supplies as a result of Russia's invasion of Ukraine".
The number of building permits issued in January dropped 6.3 per cent compared to the previous year, according to Statistics NZ. However, the 2022 figure was the second highest in the 57-year time series. Actual building activity is expected to rise more gradually due to shortages of labour, materials and rising prices, according to Westpac economist Satish Ranchod.
New Zealand Couriers has notified its users that the greater Auckland area will move into 'crisis status' as half of the drivers are out of service due to isolation. The company put on their website that at crisis status, only medical necessities will be moved.
International
US
At the time of writing all major U.S indices were up, a small bounce back from yesterday's results. The S&P 500 increased 1.7 per cent, the Dow Jones was up 1.8 per cent and the NASDAQ rose 1.2 per cent.
Every US sector was in the green. Financials, industrials and energy had the biggest increases of 2.7, 2.1 and 2.0 per cent respectively.
The biggest winner of the day was software product developer, EPAM Systems, which increased 15.8 per cent. This is the second day of high growth for EPAM Systems following their 32.3 per cent drop on Monday. EPAM Systems is still down over 30.0 per cent from their highest point last week.
Computer manufacturer Hewlett Packard (HP) was up 11.0 per cent at the time of writing, following their first fiscal quarter 2022 results (ended 31 January), which came in above expectations.
Destination property developer and operator Las Vegas Sands rose 10.3 per cent. The good performance is likely due to Las Vegas Sands Corp selling one of their resorts (Venetian) to Apollo Global Management. Apollo paid US$2.25 billion for this acquisition.
Solar technology company, Enphase Energy, was the biggest decliner at the time of writing, down 5.2 per cent. The solar photovoltaic system solutions provider, SolarEdge Technologies, decreased 4.1 per cent. Both companies saw some of the largest gains over the last few days of trading. Today's movement may be seen as a small correction by investors.
Twitter fell 3.5 per cent on what appears to be no news.
US Federal Reserve Chairman Jerome Powell delivered semi-annual monetary policy testimony to the US House today. The means of controlling inflation despite increasing spending and the rise in price of oil due to the Ukraine conflict, was one of the biggest discussions.
Rest of the World
All major Asian markets closed in the red overnight. The Shanghai Composite decreased 0.1 per cent, the Nikkei was down 1.7 per cent and the Hang Seng fell 1.8 per cent.
On the flip side, all major European markets were up. The FTSE increased 1.4 per cent, the DAX was up 0.7 per cent and the CAC jumped 1.6 per cent. Oil and gas stocks were the main driver of all three of these gains.
The major Russian exchange MOEX still remains closed after three consecutive trading days. Many Russian stocks listed on other exchanges have fallen significantly, while remaining frozen on the MOEX. Majority state-owned Russian bank Sberbank has decreased 74.0 per cent from last week.
Commodities
Gold and silver dropped 1.2 and 1.9 per cent respectively.
Fossil fuels continued their increase overnight. Oil gained 4.3 per cent to US$107.81 per barrel while natural gas rose 3.3 per cent.
The cryptocurrency market remained relatively flat, up 0.5 per cent overall. Bitcoin and Ethereum increased 1.8 and 1.3 per cent, respectively.
The U.S 10-year treasury rate rose 13 basis points to 1.837 per cent, bouncing back from a decrease of 28 basis points over the two days prior.
Australia
The ASX 200 continued its trend upward, closing 0.3 per cent higher at 7,116.70 points.
Despite the gain of the ASX 200, most sectors finished in the red yesterday with financial and A-REIT leading the laggards, down 1.4 per cent and 1.2 per cent, respectively.
On the other hand, the best performing sectors were energy, which gained 4.9 per cent, and materials up 3.0 per cent.
Medical device company PolyNovo was the ASX 200 champion yesterday (+7.3 per cent), following its half year 2022 results briefing.
Gas and petroleum company Santos also finished in the green, rising 6.2 per cent.
Rounding out the top movers was petroleum exploration and production company Woodside Petroleum, advancing 6.1 per cent. These liquified natural gas producers appear to have been benefactors of the major oil and gas corporations exiting operations in Russia, as well as the elevated oil price.
PointsBet Holdings was yesterday's biggest underperformer, falling 11.8 per cent against the run of play to close at A$3.68. The bookmaker wiped out a portion of its 17.5 per cent increase from Tuesday's trading. Reports indicate a weak tech sector, combined with a revised price target from Goldman Sachs, contributed to PointsBet's decline. Australia's information technology sector has underperformed in recent times, falling 27.6 per cent over the past six months.
Diversified financials companies Janus Henderson and Magellan Financial dropped 7.3 and 6.4 per cent, respectively. Over the past six months, Magellan has experienced significant adversity, sliding 62.2 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
NZ GDP falls 1% in September quarter; analysts expected 0.4% decline.