Jarden Brief: US indices in the red

All major US indices were in the red. Photo / AP

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

New Zealand

The NZX 50 rose 1.5 per cent, closing at 12,098 points. All but one sector ended in the green, with the biggest gains coming from healthcare and real estate, which increased 3.0 per cent and 1.4 per cent respectively. The only sector to lose ground was financials, which dropped 0.2 per cent.

For three days running EROAD has closed with the biggest gains after jumping a further 9.9 per cent yesterday. This third increase brings EROAD up 16.6 per cent from the start of the week.

The second largest increase came from Fisher & Paykel Healthcare with a 4.3 per cent climb. The company is likely recovering some losses after opening yesterday 27.9 per cent down, year to date.

Pacific Edge closes out the top three performers, also with a 4.3 per cent increase. This follows the release of an investor update from the recently-appointed CEO, which included comments on strategic objectives and market sentiment.

Air New Zealand led the bottom movers yesterday, falling 1.8 per cent. The airline halted trading of its stock yesterday ahead of a media conference, where it announced an anticipated capital raise. The announcement outlined a $2.2 billion recapitalisation comprising $1.2b of new equity, $600 million of redeemable shares and a new $400m four-year Crown loan facility. Trading should reopen with the market this morning.

A2 Milk had the second largest fall of the day, dropping 1.6 per cent.

Rounding out the three largest decliners with a 0.9 per cent drop was Pushpay Holdings. This decrease brings Pushpay 15.0 per cent down from the start of the year.

ANZ released their March Business Outlook survey results. The standout figure was cost expectations, with 95.9 per cent of businesses expecting higher prices in the next three months. Other key results had business confidence up 10 points, residential construction down 21 points and inflation expectations up to 5.5 per cent.

The long-awaited $1.25b motorway, Transmission Gully, opened to the public yesterday. The four-lane 27km long motorway had been in construction since September 2014.

International
US

All major US indices were in the red at the time of writing. The S&P 500 dropped 0.6 per cent, the Nasdaq fell 0.8 per cent and the Dow Jones Industrial Average declined 0.2 per cent.

Sectors were mostly in the red. The two gainers were energy (+0.9 per cent) and utilities (+0.5 per cent). Underperformers were consumer discretionary (-1.2 per cent), technology (-1.1 per cent) and financials (-1.0 per cent).

Leading the S&P 500 at the time of writing was Velero Energy Corp, up 3.9 per cent to a new 52-week high. The oil company has likely benefited from heightened oil prices. Phillips 66, also an oil company, rose 3.6 per cent.

Payroll services company Paychex increased 3.0 per cent following a release of the company's third quarter results. Earnings per share of US$1.15 were reported, which exceeded market consensus by US$0.10 and guidance provided had anticipated revenue growth in the double-digits.

On the flip side, PVH Corp declined 6.3 per cent. The clothing company, which owns brands such as Tommy Hilfiger and Calvin Klein, released its fourth quarter earnings. Adjusted earnings per share of US$2.84 were announced, compared to the same quarter the previous year having a US$0.38 loss per share.

M&T Bank Corp fell 6.2 per cent, losing some ground made earlier in the month. M&T Bank Corp recently received Federal approval to complete a takeover of People's United Financial. People's United Financial was down 6.1 per cent at the time of writing.

In the fourth quarter of 2021, US Real Gross Domestic Product increased at an annual rate of 6.9 per cent, higher than the previous quarter's 2.3 per cent increase.

Rest of the world

Asian markets' results were mixed overnight. The Shanghai Composite rose 2.0 per cent, the Nikkei fell 0.8 per cent and the Hang Seng increased 1.4 per cent.

In European markets, the FTSE gained 0.6 per cent, the DAX declined 1.5 per cent and the CAC dropped 0.7 per cent.

Commodities

Gold traded 1.1 per cent higher at US$1939.10 per ounce.

WTI Crude Oil gained 2.7 per cent to US$107.01 per barrel, reflecting tight supply.

Bitcoin and Ethereum fell 0.9 per cent and 1.0 per cent respectively.

The US 10-year Treasury rate fell four basis points to 2.36 per cent.

Australia

The ASX 200 finished in the green yesterday, climbing 0.7 per cent to 7,514.50 points.

Information technology led sector growth for the second straight day, improving 3.8 per cent. Healthcare (+1.4 per cent) and industrials (+1.3 per cent) also recorded gains.

Energy and materials declined, against the run of play, falling 0.8 and 0.3 per cent respectively.

Life360 contributed to tech sector gains with an increase of 9.6 per cent. The software company released its 2021 annual report, headlined by 40 per cent revenue growth and a 34 per cent year-on-year increase in monthly active users. The firm finished 2021 with a net loss of US$33.6m and a cash balance of US$231.3m. Another buoyant technology firm was network as a service (NaaS) provider, Megaport (+7.0 per cent).

Investment manager Magellan Financial Group continued its recent recovery, closing 8.5 per cent higher. Magellan remains down 53.1 per cent over the past six months.

Manufacturer Incitec Pivot fell 5.5 per cent. Gold ore miner Ramelius Resources dropped 4.6 per cent, while coal miner Whitehaven Coal slid 3.5 per cent.

In a revised deal, Regal Funds Management announced updated terms for a potential merger with VGI Partners. A portion of the combined business that Regal shareholders will hold, increased from 60.0 per cent to 66.7 per cent under the revised terms. If VGI shareholders agree to the deal in May, the combined fund manager would possess assets of A$5.6b and list on the ASX with revised branding and a new ticker. The market appeared to react positively to the news, with VGI gaining 25.0 per cent.

Real estate investment trust Charter Hall and PGGM, a Dutch pension fund, have completed a A$1.3b deal to purchase listed real estate investment firm Irongate Group. The acquirers plan to divest three of Irongate's properties to 360 Capital, recouping A$256.7m, leaving Charter Hall and PGGM with commercial properties worth $1.6b. Charter Hall (+1.1 per cent) and Irongate (+1.9 per cent) closed in the green.

• 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