Jarden Brief: US markets in the red

Wall Street was in the red this morning. Photo / Getty Images

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

New Zealand

The NZX 50 declined 0.7 per cent yesterday, falling for the second day in a row with all sectors in the red.

Consumer cyclicals and financials fared the worst, down 2.1 and 1.8 per cent, respectively.

Kathmandu's share price decreased by 4.0 per cent, losing some of the ground made earlier this week, while Air New Zealand fell 3.0 per cent.

Heartland dropped 3.0 per cent. The financial services group announced the strike price for shares to be issued under its Dividend Reinvestment Plan, in lieu of cash dividend yesterday. Shareholders who elect to participate will receive shares instead of the upcoming dividend.

Technology company Plexure announced the opening of the $5.2 million retail component of its capital raise, under which its registered shareholders will be able to apply for up to $30,000 of shares, at an issue price of 52 cents per share.

Synlait also announced a sale and leaseback of its Auckland premises for $30.05 million, a marked increase from when they acquired the site in 2017 at a valuation of $12.4 million.

Sky TV rose 4.9 per cent. In an Ongoing Disclosure Notice it was announced that the Interim Chief Financial Officer acquired 117,280 shares through on-market purchases.

Seafood company Sanford was also up, by 4.0 per cent, with the stock continuing to trade at elevated levels following last week's news that Ngāi Tahu would be purchasing a significant stake in the company at a hefty premium.

Rounding out the top performers was film industry company Vista Group, which rose by 0.8 per cent.

International
US

US markets were in the red this morning with the S&P 500, Nasdaq and Dow Jones

Industrial Average currently trading down 0.3, 0.4 and 0.4 per cent at the time of writing.
Investors have kept a close eye on the performance of recently listed Kiwi startup Rocket Lab after the company reported its first-half earnings on Thursday. The company more than doubled revenue in comparison to the same period last year, whilst also launching three successful satellites into orbit in the same period. Rocket Lab has had a stellar run since listing at a share price of US$9.82, now trading at above US$15.90 months later.

[Rocket Lab finished the sesssion up 37 per cent, making it the largest gainer on the Nasdaq. Read more on yesterday's earnings report and guidance update here.]

Sector gains include financials and materials, each leading the way with 0.4 and 0.2 per cent increases.

These sector gains were well supported by the single stock winner, Moderna Inc, as the bio-tech company extended gains of 7.4 per cent. Moderna supplies one type of Covid-19 vaccine, and traded on news flow that suggested President Joe Biden is set to enforce a rule where larger employers (those with more than 100 employees) could be required to have vaccine and testing requirement facilities. Moderna is also in the process of developing Covid-19 booster shots and flu vaccines.

United Airlines advanced 5.6 per cent at the time of writing after its CFO Derek Kerr stated that despite current uncertainty, the holiday flying season was very strong for the airline.
In contrast, downward pressure on indices was drawn from sector losses of real estate (down 1.4 per cent) and healthcare (down 1.1 per cent).

Rounding out as the single stock losers at the time of writing were pharmaceutical
companies Biogen, and Eli Lilly & Co.

Biogen slumped to a 7.0 per cent loss, on the back of reports about a slow rollout of its new Alzheimer's drug, Aduhelm.

Similarly, Eli Lilly & Co announced it would issue a sizeable $600m in bonds, which may have the impact of reducing equity holders claims on business cash flows.

Asia

Main Asian indices were mixed at the close, the Hang Seng trades lower by 2.3 per cent, the Shanghai Composite up 0.5 per cent, and the Nikkei making a loss of 0.6 per cent.

Commodities

Amongst the commonly tracked commodities, Gold reversed yesterday's losses, pushing forward 0.3 per cent to trade at US$1,798.30 per ounce. WTI crude oil fell 2.3 per cent, now priced US$67.90 per barrel.

Yields have fallen at the time of writing, with the 10-year now priced at 1.33 per cent.
Crypto markets were quiet overnight with Bitcoin up, to trade at US$46,683.40. Ethereum fell 1.3 per cent to US$3,477.50.

Australia

The ASX 200 dropped 1.9 per cent in yesterday's session, following trends seen in the US and Asia the night before.

All sectors were in the red, with information technology and telecommunication services dropping the most, down 3.2 and 2.3 per cent, respectively. Consumer staples fared the best, closing 0.7 per cent lower.

ResMed was the best performing stock in the ASX 200, increasing by 1.8 per cent. The medical device manufacturer continued its upward trend of the past three months, as a key beneficiary of the Philips Dreamstation recall. Moreover, the company will be added to the S&P ASX 50 Index prior to market open on 20 September 2021.

Coal miner Whitehaven Coal also performed well, improving by 1.4 per cent. Agribusiness company Elders nudged slightly higher, up 0.4 per cent.

The top decliner of the session was banking services provider Virgin Money UK PLC, plummeting 7.9 per cent, in line with its UK-listed counterpart the night before. This was despite the S&P announcing that Virgin Money will be added to the S&P ASX 100 Index prior to market open on 20 September 2021.

Next in line was mineral explorer and producer, Orocobre, decreasing by 6.3 per cent. The company focuses on lithium and potash in Argentina. Completing the worst performers was pre-paid card provider EML Payments, dropping by 5.7 per cent.

New South Wales has outlined a plan to ease lockdowns in a split fashion. Once 70 per cent of the eligible population of over 16-year-olds is fully vaccinated, pubs, gyms, stadiums, and the like will reopen to those who have received two doses of the vaccine. However, unvaccinated individuals will continue to face strict restrictions on their movement. The reopening is estimated to be achievable by mid-October.

• 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>