Coinbase neared a US$100 billion valuation after listing on the stock market. Photo / AP
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand:
The NZX50 rose by 0.8 per cent. The utilities and industrials sectors were the best performers, up 1.4 and 0.3 per cent respectively.
Underperforming sectors were energy, down 0.7 per cent, and financials, down 0.4 per cent.
The best-performing companies were Meridian Energy, which rose 4.5 per cent, and property investor - Argosy Property - which increased by 4.1 per cent.
Yesterday's underperformers were agribusiness company Scales Corporation and utilities company Vector, both declining by 1.5 per cent.
Air New Zealand fell by 1.1 per cent yesterday. Last week, Air New Zealand delayed their proposed capital raise from June to September. The extra three months will provide greater clarity on the amount of capital Air New Zealand will need to raise. Air New Zealand continue to juggle the conflict between having a corporate focus, as required by company law, and taking direction from Government, the majority shareholder. The Finance Minister recently wrote to the Board's chair outlining expectations for routes, sustainability plans and industrial relations.
Orchard and packhouse company – Seeka - is one step closer to amalgamating with Opotiki Packing and Cool Storage Limited (OPAC). OPAC shareholders were in favour of the acquisition at a 99.8 per cent approval rate, above the 75 per cent threshold. This transaction will make Seeka operational in all the major kiwifruit growing regions. Seeka's price fell by 0.4 per cent yesterday.
The Official Cash Rate (OCR) remains at 0.25 per cent following the Monetary Policy Review. It was noted the Committee was prepared to lower the OCR in future, if required. The Funding for Lending programme will continue to operate under the current conditions and the Large-Scale Asset Purchase programme cap will remain at $100 billion. The major takeaway was that "it [the Committee] would not remove monetary stimulus until it had confidence that it is sustainably achieving the consumer price inflation and employment objectives".
The Financial Markets Authority outlined yesterday its expectations for Kiwisaver managers. Fund managers must review the fees they are charging members, ensure they are justifiable and report the findings annually. This is to ensure investors are getting value for money, particularly in the context of fixed membership fees.
INTERNATIONAL:
US Markets
US indices were mixed this morning. At the time of writing, the Dow Jones Industrial Average was up 0.4 per cent, the Nasdaq down 0.8 per cent and S&P500 down 0.2 per cent.
Upward pressure on index movements was driven by large sector gains from Energy (up 2.8 per cent) and Financials (up 0.9 per cent).
Single stock winners included mining company Freeport-McMoRan Inc which traded favourably (up 8.4 per cent). Alongside Freeport, natural gas producer and distributor Diamondback Energy Inc advanced 6.5 per cent as both companies are expected to outperform previous earnings guidance.
The day's underperforming sectors were Technology and Consumer Cyclicals, sliding to 0.9 and 0.6 per cent losses respectively.
Contributing to sector losses were media company Discovery Inc, and chromatography manufacturer Waters Corp, down 5.3 and 3.6 per cent respectively.
Inflationary fears have caused a stir of volatility among stocks worldwide as investors begin to re-value assets under higher inflation expectations. US Consumer Price Index (CPI) inflation data for March was released on Tuesday (NZT) with figures coming in slightly above expectations at 2.3 per cent. March's numbers were up from 1.7 per cent in February, and 2.6 per cent greater than this time last year (March 2020 figures were affected by COVID lockdowns). These figures re-affirm that inflation has begun to rear its head, as post-COVID recovery measures continue to drive higher prices.
Asian Markets
Index highlights from Asian markets at the time of writing include the Shenzhen up 1.4 per cent, the Shanghai Composite 0.6 per cent, and the Nikkei sliding 0.4 per cent.
Commodities
In commodities today, Gold fell 0.72 per cent to US$1,735.0 per ounce as rising yields contribute to fixed interest becoming a relatively more attractive investment. Today, US 10-year treasury yields were pushing back toward pre covid highs, currently trading at 1.64 per cent.
Cryptocurrencies will today react to the direct listing of 'Coinbase', the company that offers a platform to buy, sell, and store bitcoin far more easily than alternate methods.
Coinbase went live this morning and is currently trading at US$369.2 and is down slightly from its IPO price of $381.
In response, Bitcoin is currently trading lower, down 0.9 per cent to US$62,311.45. In Contrast, Ethereum was up 2.2 per cent to US$2,338.55 at the time of writing. The direct listing of Coinbase coincides with the crypto bull run we have seen over the last 4 months as prices soar above record highs.
Lastly, WTI Crude climbed 4.8 per cent to US$63.10 per barrel as a product of increased demand and restricted oil supply continuing to drive higher prices.
Australian Markets:
The ASX200 finished strongly in yesterday's session, increasing 0.7 per cent and closing at 7023.1 points, setting a 100-day record.
All 11 sectors finished higher, with Information Technology posting the biggest gains for the second day, up 2.1 per cent. This was followed by Health Care and Materials, which increased 1.3 and 1.2 per cent, respectively.
The top three performing stocks of Wednesday's session were all mining companies. Resolute Mining rallied 14.9 per cent to A$0.54, Perseus Mining increased by 6.7 per cent to A$1.27, and Mineral Resources was up 6.5 per cent to A$43.49.
The worst performer was debt collector Credit Corp Group, decreasing 3.7 per cent to A$30.45. Engineering services provider Monadelphous Group and online travel booking platform Webjet were also underperforming, down 2.9 and 2.6 per cent, respectively.
Though down 1.2 per cent in yesterday's trading, Zip Co's recent success and strong performance in the stock market has led the company to a A$300 million convertible notes offering. Due to its growth trajectory, the buy now, pay later company can issue those notes at a healthy premium.
A forecast on Australian house prices, which was produced based on a model used by the RBA, predicts that prices will increase 25 per cent before the end of 2023. The total accumulative range is said to be between 14 and 36 per cent, due to existing volatility.
Yesterday, Westpac released its April consumer confidence results, which set an 11-year record. The index increased by 6.2 per cent to 118.8, compared to 111.8 in March, despite the unwinding of the JobKeeper programme and the vaccine roll-out difficulties. The positive result reconfirms NAB's business sentiment findings from Tuesday.
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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
NZ GDP falls 1% in September quarter; analysts expected 0.4% decline.