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The S&P NZ50 finished the day up 1.1 per cent while the S&P NZ10 was up 1.7 per cent, indicating outperformance by larger companies in the day's trading.
Recently listed consumer finance company, Harmoney, up 7.5 per cent, released a positive update concerning the first half of financial year 2021.
Second quarter loan origination for the New Zealand market was up 44 per cent on the first quarter at NZ$89 million. Second quarter loan origination for Australia was NZ$27 million, up 69 per cent on the first quarter.
Both figures exceeded prospectus forecasts. The company has said that due to evidence of a post-Covid recovery, it has adjusted its credit settings and increased its marketing efforts to increase its borrowing pipeline. A continued global recovery will likely underpin further growth for the company.
The best performing sector on the day was Health Care, which rose 4.0 per cent after healthcare device manufacturer, Fisher and Paykel Healthcare, jumped 5.7 per cent. Today's performance may have been driven by an apprehension that the stock, down approximately 11 per cent since late November, has fallen too far – particularly considering a worsening Covid-19 outlook. The price increase means FPH has reclaimed
its spot as the largest company by market capitalisation.
The next best performing sector was Energy, which advanced 1.6 per cent. A strong 3.5 per cent rally from Mercury seemed to make up for a slide from Contact (-4.6 per cent) and Trustpower (-2.9 per cent), which continued to be sold down with weakening ETF interest in the stock.
However, the tech sector fell 2.0 per cent after an increasingly uncertain outlook for the movie industry saw industry software developer, Vista Group, become the second worst performing company on the day, falling 3.9 per cent.
International
US Markets:
Growth in US markets overnight was fuelled by Biden-encouraged optimism, with all three major indices up following the new president's inauguration. The S&P 500 rallied 1.4 per cent, the Dow Jones by 0.8 per cent and the Nasdaq index by 1.9 per cent.
The big outperformer of the day was Netflix, which jumped 15.8 per cent after reporting a share buyback in line with subscriber numbers which outperformed estimates.
A non-eventful inauguration seemed to relieve markets, with Communication Services (+3.4 per cent) and Real Estate (+2.1 per cent) rising. The worst performing sector was the Financials sector, which fell by 0.5 per cent. The drop was headed by Bank of New York, which fell 7.2 per cent after fourth quarter earnings of US$702 million failed to meet market expectations.
Asian markets:
Overnight the Shanghai index was up 0.5 per cent, the Hangseng up by 1.1 per cent and the Nikkei down -0.4 per cent.
Alibaba shares surged by 8.5 per cent last night after the company's seemingly estranged CEO, Jack Ma, re-emerged in public for the first time in three months. The Chinese billionaire spoke to 100 rural teachers through video conference, and markets were quick to show optimism due to the sighting.
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Ma has been embroiled in speculation after his comments at a conference, in which he criticised China's financial system in wide view of government officials, resulted in a mysterious disappearance from the public eye, and the cancelled IPO of his company Ant Group. Alibaba shares fell more than 31 per cent during his absence.
Commodities:
At time of writing, Gold was up a further 1.3 per cent, trading at US$1864.80 per ounce. WTI Crude was up 0.7 per cent, trading at US$53.36 per barrel.
Australia
The S&P ASX200 finished the day up 0.5 per cent. The S&P Australian Small Cap Index was up 0.8 per cent as smaller companies outperformed on the day.
All sectors performed strongly, with the worst performing sector, Financials, only down by 0.3 per cent. On the other hand, Information Technology led the market up, climbing 2.4 per cent while Industrials also rallied 1.6 per cent.
The best performing company on the day was healthcare company, Polynovo, which advanced 6.9 per cent, followed by superannuation funds management company, Netwealth Group, which rose 5.5 per cent. Payments solutions company and investor darling, Afterpay, also had a good day, up 5.3 per cent.
The top laggards were tech company, Megaport (-5.5 per cent), medical imaging specialists, Medicus (-4.6 per cent) and coal producer, Whitehaven Coal (-4.3 per cent).
While passenger numbers through Australian airports briefly recovered through December, the reimposition of lockdowns has put a dampener on recovery. The impact could be prolonged with experts saying international borders are likely to remain closed until 2022.
Domestic revenues are forecast to improve, though not to completely recover – with some estimating that Sydney Airport's 2021 revenue from domestic travel will be at only 85 per cent of pre-Covid levels. Airport CEO's are hopeful that the development of world class contact tracing systems will enable outbreaks to be managed while the borders are kept open. However, a slow recovery looks increasingly likely for Australian airports and airlines.
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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-disclaimer