Jarden Brief: Russia's stock market reopens after month-long closure

Just 33 companies allowed to trade on the Moscow Exchange for four hours and ten minutes. Photo / AP

Keeping you up to date with the latest market moves, in association with Investment firm Jarden

New Zealand

The NZX 50 continued its downward trend, falling a further 0.4 per cent yesterday. This is likely the result of higher oil prices, continuing inflation fears and global economic uncertainty.

Fisher & Paykel Healthcare contributed to the index slump as the large cap company's share price decreased by another 4.6 per cent. The biggest stock on the market has now fallen nearly 12.5 per cent in two days, after reporting a warning of slowing revenue of for its 2022 financial year.

Next in line was healthcare company Pacific Edge, falling 2.2 per cent on no apparent news.

Air New Zealand rounded out the bottom performers, dropping 2.1 per cent yesterday. The market is anticipating any news about the company's deferred capital raise, with media speculating that this could be for about $1 billion. If a raise of that amount goes ahead, it would come in just behind the largest capital raise in New Zealand's history, after Auckland Airport secured $1.2 billion at $4.66 a share in April 2020.

On the flip side, leading the index higher was Vista Group. The film technology company bounced back from its fall on Wednesday, rising 2.8 per cent yesterday.

KMD Brands increased 2.3 per cent yesterday, after the market seems to have digested the outdoor retailer's half year update from the previous day.

Electricity generation and retail company Meridian Energy joined the leader board with a 2.0 per cent gain.

Electricity distributor Vector and provider Contact Energy were also performing well, rising 2.0 and 1.5 per cent, respectively.

The Reserve Bank has launched a public material breach register. Banks that do not meet several key prudential requirements will be listed. Latest figures from the Reserve Bank also provide information on February mortgage borrowing, which reached over $5.7 billion for the month, compared to a much higher $7.6 billion mortgage borrowing at the same time last year.

International
US

All major US indices were in the green at the time of writing. The S&P 500 was up 0.9 per cent, the Nasdaq traded 1.1 per cent higher and the Dow Jones Industrial Average increased 0.6 per cent.

All but one of the sectors were in the green. The biggest gains were seen by technology, materials, and communication services, up 1.7, 1.5 and 1.1 per cent, respectively. The loss came from real estate down 0.1 per cent.

Technology company Nvidia rose 8.8 per cent, taking the top performer spot, followed by semiconductor company Intel, gaining 5.4 per cent. According to Bloomberg, there were reports that Nvidia may consider sourcing computer chips from Intel. Additionally, Intel CEO Pat Gelsinger has been pushing government officials to support legislation intended to assist semiconductor production.

Semiconductor company Monolithic Power Systems rounded out the top movers, up 5.1 per cent.

On the flip side, software engineering company EPAM Systems was the biggest laggard, down 6.2 per cent at the time of writing.

Oil and gas exploration company Occidental Petroleum decreased 2.9 per cent.

Consumer products company Fortune Brands Home & Security dropped 2.5 per cent and hit a 52-week low of US$77.39.

KB Home declined 5.1 per cent and hit a 52-week low during trading. This comes after the homebuilding company missed quarterly earnings expectations for its top and bottom lines. Reported earnings were US$1.47 per share and revenue of about US$1.40 billion.

Uber was up 4.6 per cent after it announced a deal to list New York City taxis on its app. Through this agreement, Uber will work with taxi-hailing apps Curb and Creative Mobile Technologies.

Rest of the World

Asian markets were mixed overnight. The Shanghai Composite lost 0.6 per cent, the Nikkei gained 0.3 per cent, and the Hang Seng fell 0.9 per cent.

European markets were also mixed. The FTSE rose 0.3 per cent, the DAX was up 0.1 per cent and the CAC declined 0.4 per cent.

The Russian stock market reopened for limited trading on Thursday with just 33 companies allowed to trade on the Moscow Exchange for four hours and ten minutes. There were significant government policies in place, intending to avoid a sell-off, including a ban on sell orders by foreigners and short selling.

Commodities

Gold traded 1.4 per cent higher to US$1,963.80 per ounce, while silver gained 2.7 per cent to US$25.91 per ounce.

Conversely, oil declined 2.0 per cent to US$112.65 per barrel.

The cryptocurrency market was largely in the green - Bitcoin rose 4.3 per cent and Ethereum was up 4.4 per cent.

The US 10-year Treasury rate rose three basis points to 2.352 per cent.

Australia

The ASX 200 continued its ascent yesterday, up 0.1 per cent at 7,378.10 points.

Contrary to Wednesday, most of the sectors closed at a lower level. Information technology and healthcare led these underperformers, falling 0.8 and 0.6 per cent, respectively. The best performing sector was utilities, up 2.6 per cent (+4.9 per cent across the past five days), followed by energy gaining 2.0 per cent.

Whitehaven Coal booked the biggest gains, rising 6.5 percent. This two-year high may be attributable to boosted oil prices benefiting the energy sector and the company's commitment to assist the Australian government's humanitarian support for Ukraine.

Brickworks also performed well, up 5.0 per cent. The building product manufacturer delivered record half-year 2022 results, posting a 24 per cent increase in revenue from the previous corresponding period.

JB Hi-Fi rounded out the top movers, increasing 4.3 per cent. The company is up 5.0 per cent year to date, ending yesterday's trading session at a one-month high.

Zip was Thursday's biggest underperformer, decreasing 5.2 per cent.

Medical device company Polynovo and healthcare company Healius also experienced declines, down 4.3 per cent each. Their performance was contributing to the healthcare sector's overall downward trend this week (-1.7 per cent).

• For more information on the latest market moves, get in touch with Jarden.

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