Reserve Bank Governor Adrian Orr. Photo / NZME
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand:
The NZX50 fell 0.9 per cent yesterday. This fall was led by the healthcare sector, down 2.8 per cent and consumer non-cyclicals, down 1.0 per cent.
The only two sectors to rise were consumer cyclicals, up 0.5 per cent, and financials, up a slim 0.04 per cent.
The top performer yesterday was Skellerup Holdings, rising 3.4 per cent. Oceania Healthcare was another outperformer, up 3.0 per cent.
Fisher & Paykel Healthcare was the worst performer yesterday, down 4.0 per cent. Another underperformer in the healthcare sector was Ryman Healthcare which fell 2.1 per cent.
Arvida, and Turners Automotive reported their full-year results while Napier Port reported its half year results yesterday.
Retirement village owner Arvida recorded net profit after tax of $131.1 million, up a significant 207 per cent from the full year 2020 results. Total assets rose $275 million to $2.2 billion. Arvida rose 1.1 per cent yesterday.
Turners Automotive delivered record earnings for full year 2021. Net profit after tax rose 28 per cent to $26.9 million, with earnings per share up 29 per cent to 31.4 cents per share. Investors responded positively to this announcement, pushing the price up 3.9 per cent.
Napier Port's half year results included revenue up a slim 0.6 per cent to $52.6 million. Revenue rose despite the loss of cruise ship revenue. A strong log export market saw log volumes reach a record in the first half of the financial year. Napier Port's share price fell 2.1 per cent yesterday.
All eyes are on the Reserve Bank of New Zealand Interest Rate Review today. The Official Cash Rate is expected to remain at 0.25 per cent. However, economic guidance provided will likely determine New Zealand market moves today.
INTERNATIONAL:
US:
US Markets were trading relatively flat this morning as investors reacted to yesterday's comments from the Federal Reserve around inflation, which was said to likely be transitory, putting investors at ease with larger tech stocks being benefactors. At the time of writing, the S&P 500 has fallen 0.2 per cent, the Nasdaq down 0.1 per cent, and the Dow Jones Industrial Average also producing a slim loss of 0.1 per cent.
The leading sectors are currently Real Estate and Consumer Cyclicals, making gains of 0.4 and 0.1 per cent respectively.
Construction company NVR Inc led the way with a strong performance so far this morning, up 3.6 per cent at the time of writing. Similarly, Royal Caribbean Cruises Ltd extended gains with a 3.2 per cent increase.
On the flip side, Energy (down 1.9 per cent) and Utilities (down 1.1 per cent) were the laggard sectors at the time of writing.
Weighing down on index performance so far are today's single stock losers, computer hardware company Seagate Technology Holdings Ltd, and energy company APA Corp. Seagate fell 4.6 per cent while APA experienced a 3.7 per cent drop ahead of paying out its interim dividend on Thursday.
Rest of the World Markets:
For the main Asian indices, the Hang Seng and Shanghai Composite both made gains of 1.8 and 2.4 per cent overnight. Like in the US, larger tech names we are the forefront of index gains, benefitting from a mild inflation outlook and lower yield environment.
The Nikkei also followed its Asian peers, advancing 0.7 per cent, despite recent Covid-19 developments as the country continues to struggle with containing the virus ahead of the Olympic games in less than two months. Furthermore, the US State Department has raised its travel alert to level 4, urging Americans not to travel to Japan as the country begins to consider an event without spectators.
Commodities:
Among commonly tracked commodities. Gold rose by 0.7 per cent to equal its 4-month high at US$1,897.9 per ounce. WTI Crude oil has risen 0.3 per cent to US$66.2 per barrel while US 10-year treasury yields continue to fall, currently trading at 1.564 per cent.
Lastly, Cryptocurrencies stabilised with Bitcoin down 2.0 per cent to US$37,992.7 while Ethereum was unchanged at the time of writing, priced at US$2,585.0.
Australian Markets:
Yesterday the ASX200 increased 1.0 per cent to 7115.20 points.
Ten out of 11 sectors were in the green, with A-REIT and Telecommunications Services booking the biggest gains, up 1.5 and 1.4 per cent, respectively. The only under-performing sector was Utilities, down 0.4 per cent.
The top gainers of the day were investment and superannuation platform services provider HUB24 (+8.9 per cent), online retailer Kogan.com (+6.6 per cent), which continued its rally from the previous day, and lithium and tantalum producer Pilbara Minerals (+5.1 per cent).
The worst performers in Tuesday's session were gold miner Resolute Mining (-6.3 per cent), software developer Nuix (-5.5 per cent), and medical devices and systems developer Fisher & Paykel Healthcare (-3.8 per cent).
Nuix announced on Monday that it will establish an independent Board sub-committee and additional Board appointments, to ensure better oversight. This decision was prompted by news about issues with an options package offered to former Nuix chairman Tony Castanga, which was cashed out for AU$80 million in the Nuix IPO on 4 December. Yesterday, the AFP confirmed that it has launched an investigation into the potential offences under the Commonwealth Corporations Act.
BSP Financial, formerly known as Bank of the South Pacific, commenced being listed on the ASX yesterday to access new investors. The now dual-listed firm, on the Papua New Guinean (PNG) stock exchange and ASX, is one of the major lenders in the South Pacific region, having operations throughout PNG, Fiji, Solomon Islands, Samoa, Tonga, Cook Islands, and Vanuatu.
• For more information on the latest market moves, get in touch with Jarden.
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>