Keeping you up to date with the latest market moves, in association with Investment firm Jarden
The NZX 50 fell 0.5 per cent yesterday, led into the red by consumer cyclicals and healthcare sectors, falling 1.7 and 1.6 per cent, respectively.
On the downside, SkyCity Entertainment Group fell 4.2 per cent. The company announced that Rob Campbell was to retire as Chair and Director of the SkyCity Board in early 2022.
Ryman Healthcare lost 2.6 per cent and Kathmandu declined by 1.9 per cent, easing off recent highs. The continuation of Alert Level 3 in Auckland will continue to prevent in-store shopping for Kathmandu in the city.
The energy sector rose 6.8 per cent with an equivalent percentage increase for in Z Energy.
Z Energy rose to $3.61, its highest level since March 2021, following a binding Scheme Implementation Agreement with Ampol. Ampol is a listed Australian petroleum company.
The buyout would be conducted at $3.78 a share. Z Energy shareholders will also get the first $0.05 per share of the interim full year 2022 dividend, taking the effective offer to $3.83 per share. The offer, which has been unanimously recommended by the Z Energy Board, will also need acceptance from Z Energy shareholders. The Commerce Commission has required that Ampol sell Gull if the deal goes ahead.
Financials and utilities were also outperforming sectors, up 0.9 per cent and 0.8 per cent, respectively.
The utilities sector was led upwards by Meridian Energy and Contact Energy, which each gained 2.4 and 2.1 per cent.
Retirement village operator Summerset released third-quarter 2021 sales metrics yesterday with 199 sales for the quarter ended 30 September. Summerset fell 0.7 per cent during trading yesterday.
US markets were in the red this morning as the S&P 500, Nasdaq, and Dow Jones Industrial Average are currently trading lower by 0.2, 0.1, and 0.2 per cent each at the time of writing.
Sector gains included materials and real estate, each leading the way with 0.4 and 0.2 per cent increases.
These sector gains were well supported by the single stock winners, with homeware energy solutions company Enphase Energy and mining company Freeport-McMoran jumping 6.0 and 4.1 per cent at the time of writing. Enphase traded favourably, in line with the wider energy industry, while Freeport received a series of broker upgrades from analysts ahead of its quarterly sales result on the 22nd of this month. It also trades ex dividend tomorrow.
In contrast, downward pressure on indices is drawn from sector losses of utilities (down 1.1 per cent) and communication (down 1.0 per cent).
Rounding out as the single stock loser at the time of writing was apparel company Gap INC, losing 4.0 per cent. On the weekend it announced the acquisition artificial intelligence company Context-Based 4 Casting Ltd (CB4).
Joining Gap was Southwest Airlines, down 3.2 per cent after the weekend saw hundreds of flight cancellations, reportedly due to weather issues and air traffic control, as well as fleet and staff availability issues.
Rest of the World Markets:
Asian indices were a mixed bag overnight. Highlights included the Hang Seng, trading up 2.0 per cent, where noticeable gains from large cap stocks included online several online e-commerce platforms Meituan (up 8.4 per cent), Alibaba (up 7.9 per cent), and Tencent (up 3.0 per cent).
Amongst commonly tracked commodities, gold slipped by 0.1 per cent to at US$1,755.4 per ounce. WTI Crude oil climbed 2.2 per cent to US$81.1 per barrel amidst the ongoing energy shortage, increasing the world's reliance on fossil fuels. US 10-year treasury yields were roughly unchanged at 1.6 per cent.
Lastly, Cryptocurrencies continued a strong run with Bitcoin surging another 3.6 per cent to US$57,418.5, its highest since May. Ethereum was relatively quiet, higher by 1.3 per cent to US$3,575.3.
The ASX 200 started the week off slightly lower, decreasing 0.3 per cent to 7,299.8 points, despite New South Wales experiencing its first day of eased restrictions for the fully vaccinated, after 106 days of lockdown.
Seven out of 11 sectors closed were in the red, with information technology (-2.7 per cent) and consumer discretionary (-1.5 per cent) booking the biggest losses. Energy and materials performed well, increasing 1.3 and 1.2 per cent respectively.
The top four performers of the ASX 200 were mining companies that led markets higher yesterday. These gainers were Whitehaven Coal (+6.2 per cent), Fortescue Metals Group (+5.3 per cent), Champion Iron (+3.5 per cent), and Iluka Resources (+3.3 per cent).
Fortescue announced on Sunday that it will develop the world's largest electrolyser, renewable industry and equipment manufacturing centre at Gladstone, Queensland. This green energy and green hydrogen project is set to be the first in a series of investments that aim to render Fortescue carbon neutral by 2030. The initial electrolyser investment is expected to be A$114 million.
The biggest decliner of the day was Star Entertainment Group, plummeting 22.9 per cent, wiping nearly A$1 billion off its market value. The casino operator is under investigation regarding allegations by several news outlets, implicating the company in suspected money laundering, organised crime, and fraud . The NSW Independent Liquor and Gaming Authority said it will conduct the probe in private, unlike the public inquiry into rival operator Crown Resorts last year. Star called the media reports about the allegations "misleading" in a statement to the ASX yesterday.
Global equities fund manager Platinum Asset Management also underperformed, decreasing 5.6 per cent, followed by buy-now-pay-later giant Afterpay, down 4.2 per cent.
• 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>