Jarden Brief: Shipbuilder success but disaster for Ball Corp after factory shutdown announcement

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

International

US

The major US indices were mixed with the standout being the Nasdaq, up 0.3 per cent.

The S&P 500 and Dow Jones Industrial Average were in the red at the time of writing, declining 0.2 and 0.1 per cent respectively.

As the oil price continues to fall, energy was the largest detractor for the second consecutive day, down 1.8 per cent. Consumer discretionary and industrials were the strongest performers with increases of 0.7 and 0.6 per cent respectively.

Software engineering company Epam Systems led the S&P with a 11.6 per cent jump to its share price. The company's results had year-on-year revenue up 35.6 per cent at US$1.195 billion.

Closely behind with gains of 10.0 per cent was human capital management cloud provider Ceridian HCM Holdings.

Ship building company Huntington Ingalls Industries is the third best performer, up 7.4 per cent.

The company's second quarter results revealed a 38 per cent increase in year-on-year profit on the back of increased revenue.

IT company DXC Technology was the largest detractor, down 19.7 per cent at the time of writing. DXC's results had net income down by over 60 per cent.

Ball Corp, a provider of aluminum packaging, fell 18.6 per cent.

The company posted its second quarter results, which yielded a net loss of US$174 million and revealed its intention to close a plant in Minnesota, which may affect about 110 workers.

Fortinet closes out the top three laggards, down 15.8 per cent.

Rest of the World

The major European markets stayed out of the red with the FTSE lying flat while the CAC and the DAX both jumped 0.6 per cent. The Euro strengthened against the US dollar, up 0.7 per cent with the USD/EUR at 1.0237.

Similarly, Asian markets all closed in the green. The Shanghai Composite increased 0.8 per cent, the Nikkei closed 0.7 per cent while the Hang Seng rose 2.1 per cent.

The Bank of England raised interest rates by 50 basis points to 1.75 per cent. This represents the largest rate hike in 27 years.

Commodities

Bitcoin and Ethereum were both in the red, down 4.8 and 4.9 per cent respectively.
The US 10-Year Treasury Rate lost five basis points to 2.694 per cent at the time of writing.

WTI Crude Oil continued its decline with a further 2.4 per cent drop bringing the price down to US$88.45 per barrel.

In New Zealand, petrol prices are currently below $3 a litre, but Automobile Association principal policy adviser Terry Collins expects prices will likely drop further.

Prices for a barrel of crude oil dropped from US$110 to US$96.78 in less than a week. Photo / Michael Cunningham

Collins believes the drop in price of WTI Crude Oil this week will translate to lower costs at the pump in New Zealand.

Gold was in the green with a 1.8 per cent boost to US$1807.4 per ounce.

Platinum and palladium, two key metals in catalytic converters, continued this week's strong performance with per ounce increases of 4.1 and 3.3 per cent respectively.

New Zealand

The NZX 50 was in the green, advancing 0.3 per cent to 11,735.5 points.

Retirement village operator Ryman Healthcare was the top performer of the index, improving 3.3 per cent. There did not appear to be any news related to this movement.

Electricity company Mercury NZ also performed well, lifting 2.7 per cent, now up 7.8 per cent year to date.

The company announced that Chief Executive Vice Hawksworth and Chief Financial Officer William Meek will present the 2022 full year results on 16 August.

Rounding out the top movers was manufacturer Skellerup, rising 2.6 per cent.

The company's 2022 full year results are due to be released on 18 August.

Port of Tauranga was the biggest underperformer of the index, reducing 2.6 per cent, but still up 5.4 per cent year to date. The company will release its 2022 full year results on 26 August.

Fisher and Paykel Healthcare decreased 2.5 per cent yesterday, now 36.1 per cent lower year to date.

Closing out the bottom movers was transport technology company Eroad. The company moved further into the red yesterday, dropping 2.0 per cent, now 61.3 per cent down year to date.

Australia

The ASX 200 traded flat yesterday.

Sectors were mixed with seven of 11 ending higher. Information technology rose 1.9 per cent, telecommunications services gained 1.8 per cent and utilities increased 0.8 per cent.

On the flip side, energy dropped 2.2 per cent, materials declined 1.1 per cent and consumer staples was down 0.7 per cent.

Fintech company Tyro Payments was among the top performers for the second day in a row, rising 17.5 per cent. Bookmaker Pointsbet Holdings was up 11.6 per cent and bio-tech company Imugene traded 10.9 per cent higher.

Conversely, Orica was the largest laggard, dropping 9.3 per cent.

This is after the commercial explosives and blasting systems provider announced the successful completion of a A$650 million fully underwritten placement of approximately 40.6 million shares at a price of A$16.00 each.

Part of the proceeds from the placement will be used to finance the strategic acquisition of Axis Mining Technology.

Agribusiness GrainCorp declined 6.6 per cent and buy now pay later firm Zip Co partly reversed Wednesday's gains with a decrease of 4.5 per cent.

Centuria Industrial REIT rose 3.8 per cent after announcing FY22 financial results.

Statutory net profit was A$367.5 million and funds from operations was A$111.7 million, up 22 per cent on the previous corresponding period.

The Australian Bureau of Statistics released its international trade in goods and services data yesterday.

The seasonally adjusted balance on goods and services surplus rose A$2,654 million to A$17,670 million in June with exports increasing A$2,978 million and imports up A$324 million.

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

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