Private equity firms have broken a 40 year record with US$500b in deals. Photo / File
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand:
The NZX50 had another good session on Thursday and closed 0.2 per cent higher than the previous day.
Real estate and consumer non-cyclicals were leading the way, increasing 1.7 and 1.2 per cent, respectively. On the flipside, financial and consumer cyclical stocks were underperforming in the market, decreasing 1.1 and 0.6 per cent, respectively.
The best performer of the day was industrial, office and retail properties investor, Argosy Property, rising 4.5 per cent. Next in line was milk powder exporter The a2 Milk Company, up 3 per cent. Rounding out the leader board was investment properties manager, Stride Property, increasing 2.9 per cent.
The worst performer on Thursday was agribusiness Scales Corporation, down 2.1 per cent. Outdoor retailer Kathmandu decreased by 1.9 per cent, continuing to ride out the volatility brought on by the company's trading update earlier this week. Lastly, media company Sky Network Television declined by 1.7 per cent.
The Auckland based premium drink mixer business, East Imperial, which was founded in 2014, is now headed towards listing on the London Stock Exchange (LSE) in a reverse takeover, valuing the company at $59.1 million.
INTERNATIONAL
US:
US markets were mostly in the green this morning as the S&P500 and Dow Jones Industrial Average are currently trading higher by 0.4 and 0.3 per cent, with the Nasdaq unchanged at the time of writing.
To no surprise, the current level of merger and acquisition (M&A) activity post the Covid-19 crisis has broken further records, with private equity firms making an astounding US$500b in deals for the first six months of this year, the highest level since records began four decades ago.
Sector gains include energy and utilities, each leading the way with 1.5 and 1.2 per cent increases. There were no sector losses at the time of writing.
These sector gains were well supported by the single stock winners, with Diamondback Energy Inc and Occidental Petroleum Corp jumping 5.9 and 4.5 per cent respectively. Both oil companies traded favourably on the back of sustained increases in the oil price toward record levels.
Rounding out as the single stock loser at the time of writing was Walgreens Boots Alliance which slumped to a 5.9 per cent loss. The retail and pharmacy company reported third quarter earnings this morning. Joining Walgreens was Micron Technology Inc (a specialist semiconductor manufacturer) falling 5.8 per cent after a series of broker downgrades caused selling activity.
Rest of the World Markets:
Asian indices fell overnight. Highlights include the Hang Seng trading down 0.6 per cent, the Shanghai Composite also down a slim 0.1 per cent, and the Nikkei making a loss of 0.3 per cent at the day's close.
Commodities
In commodities this morning, Gold is trading stronger by 0.1 per cent at US$1,773.2 per ounce. WTI crude oil reached its highest level since 2018, now priced US$75.4 per barrel. Yields are also trading slightly higher, with the US 10 year now priced at 1.483 per cent.
A slow morning for crypto currencies, with both Bitcoin and Ethereum underperforming, down 3.4 and 4.6 per cent to trade at US$33,586.4 and US$2,128.71, respectively.
Australian Markets:
The S&P ASX200 closed lower on Thursday, dropping 47 points (down 0.65 per cent) to 7,265.60 and crossing below its 20-day moving average. The index is currently 1.9 per cent below its 52-week high.
Australian Bureau of Statistics data indicates that the present labour shortages in Australia are getting worse. For the May 2021 quarter, total job vacancies were 362,500, an increase of 23.4 per cent from February 2021. Private sector vacancies were 331,900 (up 24.8 per cent). Public sector vacancies were 30,600 (up 10 per cent).
The best performing stocks for the session were gold miners Regis Resources and St Barbara, up 8.1 and 5.6 per cent respectively. Data analytics and software company Nuix was the third best performer on the day, up 5.4 per cent.
Bucking the minerals performance trend yesterday was gold miner Chalice Mining, down 5.9 per cent over the session. Mineral sands processor Iluka Resources was down 4.9 per cent, giving back some of Wednesday's 12 per cent gain.
Real estate investment trust, Charter Hall Long WALE (up 0.6 per cent) announced the acquisition of three properties, worth A$267 million, on an initial yield of 5.1 per cent. Weighted average lease expiry is now 11.2 years with 2.3 per cent annual rent reviews, with leases containing 60 per cent inflation protection. In addition, the company has upgraded its operating earnings per share guidance from greater than 2.75 per cent to greater than 4.5 per cent.
International Education provider IEL Education (down 0.3 per cent) has entered a binding agreement to acquire Indian International English Language Teaching Systems for GBP130 million. India is the largest IELTS market globally and has grown approximately 21 per cent per annum between 2010 and 2019. The deal is expected to be 13 per cent EPS accretive (pre-synergies), with scope to create A$6-$8 million in synergies within 24 months.
• 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>