The Wellington region is currently in alert level 2. Photo / Jack Crossland
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand:
On Wednesday, the NZX50 increased by 0.4 per cent, despite the news of the Wellington area entering Level 2 restrictions at the end of the day, after a Sydney tourist carrying the delta variant of the virus had been exploring Wellington while potentially infectious.
Energy and industrial stocks made the biggest gains, up 1.5 and 1.0 per cent, respectively. Financials and consumer non-cyclicals were trading in the red, down 2.0 and 0.2 per cent, respectively.
The winner of the day was Port of Tauranga, increasing 3.1 per cent. Next in line was logistics giant, Mainfreight, rising 2.5 per cent to continue its stellar run post result. Rounding out the top performers was film software company, Vista Group International, up 2.1 per cent in response to a positive cashflow position update to the market.
Technical polymer product provider, Skellerup Holdings, was the worst performer of the session, down 3.1 per cent. Agribusiness company, Scales Corporation, decreased by 2.4 per cent, followed by retail banking provider, Westpac Banking Corp, down 2.4 per cent.
Skyline Enterprises announced that it had made better than expected profits for the year ending 31 March 2021, despite the severe impact that COVID has had and continues to have on the tourism industry. The positive result was mainly due to an increase in property valuation. The company had a near $40 million uplift in value.
INTERNATIONAL
US:
US markets are mostly in the green this morning as the S&P 500 and Nasdaq have advanced 0.1 and 0.3 per cent at the time of writing, while the Dow Jones Industrial Average currently trades unchanged.
The tech heavy Nasdaq continues to push past its all-time high, reaching14,317.6 points in the earlier stages of this morning's activity.
Sector gains include financials and consumer cyclicals, each leading the way with 0.8 and 0.7 per cent increases, respectively.
These sector gains were well supported by the single stock winners, with car manufacturers, Tesla and the Ford Motor Company, jumping 4.7 and 3.9 per cent at the time of writing. Tesla traded favourably as it announced the rollout of its first of a series of solar powered charging stations in China. Similarly, Ford also released information on its own EV transition as the company quickly shifts away from its fuel orientated roots.
In contrast, downward pressure on indices was drawn from sector losses of utilities (down 0.8 per cent) and consumer non-cyclicals (down 1.17 per cent).
Rounding out as the single stock loser at the time of writing was Nov Inc, which slumped to a 4.9 per cent loss. Nov Inc provides equipment for oil exploration activities and was a casualty of a large sell off within the industry. Joining Nov Inc was real estate company, Equinix Inc, which has lost 3.2 per cent to offset a stellar few months for the company's stock price.
Rest of the World Markets:
Asian indices were mixed overnight. Highlights include the Hang Seng, trading up 1.7 per cent as large-cap tech stocks responded to the US Federal Reserve's inflation comments earlier in the week. The Shanghai Composite also was up 0.3 per cent, and the Nikkei made a small loss of 0.03 per cent at the day's close.
Commodities:
In commodities this morning, gold is trading stronger by 0.3 per cent at US$1,782.3 per ounce. WTI crude oil advanced past its two-year high, now priced at US$73.0 per barrel on reports of a larger than expected supply shortage ahead of an official Energy Administration Announcement. Yields are also trading mostly unchanged, with the 10-year now priced at 1.49 per cent.
In cryptocurrencies, bitcoin erased yesterday's losses to claw back 18 per cent of value at one stage, now trading at US$33,353.3. Ethereum also followed bitcoin's lead, currently trading up 2.9 per cent at US$1,965.9.
Australian Markets:
The S&P ASX200 closed lower on Wednesday, dropping 43 points (-0.60 per cent) to 7298.50. The index has lost 1.2 per cent over the last five days, but still sits only 1.5 per cent below its 52-week high.
Investment company, Washington H. Soul Pattinson, was the best performer on the day, up 8.5 per cent on the news of its impending merger with fellow investment company, Milton. The deal will create a combined A$10.8 billion dollar company, which places it among the top 50 companies in Australia by market capitalisation.
WHSP said the merger would result in a larger, more diversified investment company, focused on long-term market outperformance and dividend growth.
The next best performing stocks on the day were buy-now-pay-later company, Zip Co, up 6.4 per cent and building and construction materials supplier' Boral, up 4.5 per cent. Boral announced that it had bought back A$19 million worth of its stock, part of an ongoing capital management programme that appears to be reassuring investors.
Print-on-demand marketplace operator, Redbubble, was the worst performer on the day, down 6.9 per cent. Healthcare imaging software provider, Pro Medicus, was the next worst performer, down 5.3 per cent over the day.
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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>
BGH's tilt at Tourism Holdings has sparked more merger and acquisition speculation.