There's a halo effect around Mark Zuckerberg's metaverse. Photo / Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand
The NZX 50 closed 0.4 per cent lower on Thursday at 12,943.94 points.
Technology was the only sector that increased yesterday, rising 0.2 per cent. The Technology Investment Network released its latest annual report about New Zealand's top 200 technology companies. The companies covered by the report recorded about $14 billion in revenue, of which over $10 billion came from exports. This was supported by accelerated growth in Australia, Asia, Europe, and North America. Fisher & Paykel Healthcare ranked highest in the report with $1.97 billion in revenue – a 56 per cent increase on 2020.
Real estate (-1.2 per cent) was the laggard of the day, followed by utilities, decreasing 0.7 per cent.
Skellerup Holdings made it back onto the leader board. The agri-manufacturer was the best single stock performer, up 2.2 per cent. Next in line was electricity and gas company Genesis Energy, rising 1.3 per cent. New Zealand exchange operator NZX Limited also performed well, up 1.2 per cent.
The ANZ World Commodity Price Index rose 2.1 per cent in October, to another record high on the back of record inflation. Dairy prices increased by 25 per cent year-on-year, while aluminium rose 62 per cent. The report also highlighted that global shipping prices remain sky high, but some signs are pointing to stabilisation.
On the flipside, Summerset Group Holdings was booking the biggest losses of the day, decreasing 2.4 per cent yesterday. The retirement village operator continued its general downward trend from the past three weeks.
Energy retailer Mercury NZ declined by 2.1 per cent, followed by film software company Vista Group International, which corrected some of the gains it made in the previous session, down 2.0 per cent.
International
US
The S&P 500 was up 0.2 per cent, the Nasdaq was trading up 0.7 per cent, and the Dow Jones Industrial Average had fallen 0.3 per cent at the time of writing this morning.
The market is digesting the result of the Federal Reserve meeting, at which it announced it will start withdrawing its emergency support for the US economy. The Fed will begin reducing bond purchases by US$15 billion from US$120 billion later this month and keep the cash rate unchanged. This sees the reduction of some of the biggest market interventions in the wake of the pandemic and will be the first monetary policy tightening in the US since the beginning of the Covid-19 pandemic.
Consumer discretionary and technology were the leading sectors, up 1.7 and 1.3 per cent, respectively.
Etsy rose 14.4 per cent to a 52-week high. The online crafts marketplace's third quarter results beat market expectations, with the US$062 per share profit exceeding consensus expectations of US$0.55.
Nvidia increased by 12.7 per cent to a new 52-week high today, now becoming the seventh largest company in the US by market capitalisation. Market commentators have speculated that development of the 'metaverse', the concept kicked into action by Facebook last week, will significantly increase Nvidia's total addressable market.
The sectors exerting the greatest downwards pressure on the S&P 500 were financials and utilities, falling 1.7 and 1.4 per cent, respectively.
Penn National Gaming declined 20.3 per cent to a 52-week low on release of its quarterly result. The company reported adjusted earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) of US$480.3 million. This is compared to an expected US$537.8 million, citing third quarter performance affected by Covid-19 flare ups and Hurricane Ida.
Moderna fell 19.5 per cent after weaker-than-expected third quarter results. The pharmaceuticals manufacturer reduced its Covid-19 vaccine sales forecasts for the year. Third quarter earnings expectations were missed with a US$7.70 earnings per share for the quarter compared to a consensus US$9.05.
Rest of the world
The major Asian indices were in the green overnight, reacting to the Fed's decision to taper bond purchases. The Hang Seng rose 0.8 per cent, the Nikkei gained 0.9 per cent, and the Shanghai Composite increased 0.8 per cent.
Commodities
In commodities this morning, gold rose 1.7 per cent to US$1793.00 per ounce as the Fed signalled patience on cash rate hikes. WTI crude oil declined again, down 0.9 per cent to US$80.15 per barrel. The US 10-year bond is trading at 1.524 per cent.
Of the commonly followed cryptocurrencies, Bitcoin declined 3.2 per cent and Ethereum lost 3.8 per cent.
Australia
The ASX 200 pushed forward another 0.5 per cent on Thursday with the index finishing at 7,428.0 points.
Financials and real estate contributed to overall index movements with each sector making gains of 1.1 and 0.9 per cent, respectively.
Insurance company NIB holdings and agricultural solutions provider Nufarm each made strides of 5.8 per cent during Thursday's trading. NIB investors appear to have reacted positively to the results included in its annual general meeting (AGM), where first quarter premium revenue increased to A$669 million, up 8.5 per cent. Joining Nufarm and NIB in the outperformers was Chalice Mining (+5.4 per cent)
On the other hand, sectors weighing down the market were energy and educational services, with 1.9 and 1.1 per cent losses against the rising tide.
Domino's Pizza dropped 18.4 per cent after its AGM and investor presentation highlighted increasing food costs and lower-than-expected Japanese sales. Joining Domino's was oil and gas exploration company Beach Energy, which declined 5.2 per cent following the resignation of managing director Matt Kay on Wednesday.
Food processor Inghams Group fell after comments from its AGM highlighted cost inflation for its chicken feed, which may impact the company's margins.
In other news, Thursday was host to the listing of Australia's first ever crypto currency exchange traded fund (ETF), a milestone increasing access for would-be Australian crypto investors. The BetaShares Crypto Investors ETF is trading under the ticker CRYP, debuting at a price of A$11.30 per share, where it experienced record trading volumes over its first few hours. CRYP doesn't invest directly into crypto currencies, but indirectly provides exposure through global companies which are involved in the crypto market.
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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-disclaimera>
NZ GDP falls 1% in September quarter; analysts expected 0.4% decline.