The end of US sanctions on Iran could increase global oil supply. Photo / Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand
The NZX 50 was in the green again yesterday, rising 0.9 per cent and continuing to rebound following January's selloff.
Sky Network Television rose 5.5 per cent. Sky reports its
interim results on 24 February.
Vista Group International gained 2.8 per cent and travel-booking company Serko was a top performer again, rising 2.8 per cent following Tuesday's 2.9 per cent gain. This could be on the back of recent optimism around the upcoming Australian border reopening.
Pushpay Holdings declined 2.7 per cent and Tourism Holdings declined 1.8 per cent.
Air New Zealand fell 1.8 per cent, losing some of Tuesday's 4.7 per cent gain.
Vital Healthcare Property Trust announced the acquisition of land adjacent to its existing The Hills Clinic asset in north-west Sydney. Total development costs, inclusive of the land, are expected to be ~$50 million. Vital rose 1.0 per cent yesterday.
The latest ANZ Truckometer was also released this week. It is a set of two economic indicators derived using traffic volume data from around New Zealand. The Light Traffic Index lifted 0.9 per cent in January, while the Heavy Traffic Index fell 0.5 per cent with Covid-19 disruptions likely to continue to cause volatility in both traffic data and economic activity.
International
US
The main US indices are trading higher this morning with S&P 500, Nasdaq, and the Dow Jones Industrial Average all higher by 1.2, 1.7, and 0.7 per cent respectively.
Outperforming sectors include materials (+1.8 per cent) and real estate (+1.6 per cent) in a morning where no sector posted a loss.
Sector gains were lifted by impressive performances from advertising and marketing company Omnicom, energy technology provider Enphase Energy, as well as restaurant chain Chipotle Mexican Grill, with all three companies benefitting from very positive earnings results. Omnicom made a 12.0 per cent gain in share price at the time of writing, after posting fourth-quarter revenue of US$3.9 billion, well in excess of consensus estimates which were closer to US$3.7 billion. Enphase and Chipotle were similar in beating consensus estimates, with their results followed by a flurry of broker upgrades, pushing the stocks higher as they currently trade up 10.4 and 9.0 per cent each.
Few stocks made losses during the session, with the notable exception being healthcare company CVS Health Corp, down 5.4 per cent. Despite fourth-quarter results exceeding expectations, the company said it expected to see a 70 to 80 per cent drop in Covid-19 vaccinations admitted through their drugstores in 2022.
The second and third largest decliners at the time of writing are technology company CDW Group (-2.3 per cent) as well as biopharmaceutical provider Incyte (-2.2 per cent).
Rest of the World
Asian markets trended upward, with the Hang Seng, Shanghai Composite, and Nikkei each posting 2.1, 0.8, and 1.1 per cent gains overnight.
The Hang Seng was buoyed by strong performances from large cap technology stocks, with Alibaba (+6.9 per cent), Tencent (+2.7 per cent), and Netease (+4.9 per cent) leading the way. Investment management conglomerate Softbank (part of the Nikkei Index) fell 0.9 per cent. As reported yesterday, this came after an announcement that technology company Nvidia's planned $66 billion acquisition of one of Softbank's segments, 'Arm', had fallen through. Softbank shares rebounded overnight, finishing up 5.9 per cent amidst optimism a public sale could still prove a favourable outcome for investors.
Commodities
At the time of writing, gold continues to trade higher (+0.4 per cent) due to inflation fears, now sitting at US$1,835.6 per ounce.
WTI crude oil is stable, just shy of the US$90 mark at US$89.1 per barrel with investors waiting to hear about an agreement between the US and Iran, as parties negotiate the removal of sanctions on Iranian oil, which would increase supply into world markets.
Cryptocurrencies are in the green, with Bitcoin rising to its highest level in a month, up 0.8 per cent to US$44,320.8. Ethereum was also strong at US$3,217.6, +3.7 per cent.
Yields hovered around the 1.9 per cent mark, with the US 10-year bond now priced at 1.92 per cent.
Australia
The ASX 200 had another good session on Wednesday, closing 1.1 per cent higher.
The index gains were led by the information technology sector rallying 4.2 per cent. Financials also fared well, increasing 2.6 per cent. The only sectors in the red were materials (-0.6 per cent) and energy (-0.4 per cent).
The best performer of the day was Computershare, rising 11.2 per cent. The share register operator delivered its first half 2022 results on Tuesday, to which the market reacted positively. Management revenue increased 4.6 per cent to A$1.2 billion and the interim dividend per share rose 4.3 per cent to 24 cents per share.
Next in line was cancer immunotherapy company Imugene, trading 6.6 per cent higher.
The half year 2022 result for the Commonwealth Bank of Australia (CBA) (+5.6 per cent) seemed to have boosted the performance of financials and reversed the general downward trend of CBA's share price across January. The statutory net profit after tax came in 26 per cent higher than in the previous corresponding period.
The worst performer on Wednesday was Mineral Resources, declining 8.9 per cent, after delivering its half year 2022 results.
Joining the mining company in the red was Bapcor, which decreased 7.9 per cent. The distributor of automotive aftermarket parts also released its first half 2022 results.
Nanosonics, closing 6.0 per cent lower, continued its downward trend from the previous session.
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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
BGH's tilt at Tourism Holdings has sparked more merger and acquisition speculation.