Keeping you up to date with the latest market moves, in association with Investment firm Jarden
The New Zealand market resumed trading yesterday, after the public holiday on Monday. The NZX50 closed slightly higher than Friday's close, up 0.2 per cent.
The index was carried by technology stocks, which rose 1.7 per cent, followed by consumer non-cyclicals, up 0.4 per cent. Financials and consumer cyclicals underperformed, down 0.7 and 0.5 per cent, respectively.
Synlait Milk continued its momentum from last week and closed 2.3 per cent higher, after a volatile session yesterday. Joining the dairy processor on the leader board was seafood company, Sanford, increasing 2.2 per cent. Rounding out the top performers of the session was energy retailer Contact Energy, up 2.1 per cent.
The single worst performer on Tuesday was SkyCity Entertainment Group, falling 5.7 per cent. The entertainment complex operator is currently under investigation by Australia's financial system regulator Austrac. SkyCity is facing allegations of "potential serious non-compliance" with anti-money laundering and terrorism financing laws. More specific, the regulator is concerned that casino operator has mismanaged the customer due diligence of high risk and politically exposed persons. The repercussions were already felt on Monday when the stock price on the ASX fell 6.5 per cent and continued on the NZX yesterday.
Next in line were retirement village operator Summerset Group Holdings and Air New Zealand, down 2.3 and 2.1 per cent, respectively.
Meridian Energy (+1.4 per cent) announced a review of the ownership of its Australian operations. The electricity retailer's management said it would consider all options, including partial or full divestment.
At the time of writing, the US markets were a mixed bag. The S&P500 was up 0.1 per cent, the Nasdaq had risen 0.2 per cent and the Dow Jones Industrial Average was unchanged. The S&P500 was nudging a record high throughout the trading day.
The top-performing sectors of the S&P500 were Consumer Discretionary and Energy which had risen 0.9 and 0.8 per cent, respectively.
The best performing stock was power generation equipment provider Generac Holdings which rose 6.5 per cent at the time of writing. This follows a note it released outlining concerns with US electric grid stability and predicting increased demand for its home generators.
Another outperformer was apparel company Gap, which rose 3.6 per cent. Gap has recently experienced strong demand for a collaboration with rapper Kanye West called Yeezy Gap. Gap's share price has risen 55 per cent year-to-date.
The sectors underperforming the most at the time of writing were Utilities and Consumer Staples, falling a respective 0.9 and 0.8 per cent.
Organon and Co was the worst performer again today, down 7.6 per cent, at the time of writing. This pharmaceutical company's share price fall may be investors responding unfavorably to news that other pharmaceutical companies are producing Alzheimer's drugs, with Biogen's gaining FDA approval.
Micron Technology fell 4.6 per cent. They are likely to be affected by the proposed 15 per cent minimum corporate tax rate proposed by the US internationally.
This week the raise in the global minimum corporate tax rate was backed by the G7 nations, a group of major economically developed countries.
Rest of the World Markets:
Asian indices were in the red overnight as investors reacted to Japan's first-quarter Gross Domestic Product. The Shanghai Composite lost yesterday's gains, down 0.2 per cent, the Hang Seng was flat and the Nikkei fell 0.2 per cent.
Japan's economy contracted by 3.9 per cent in the first quarter of 2021, an improvement from the 5.1 per cent initial estimate.
Gold fell 0.2 per cent to US$1,895.20 per ounce.
Cryptocurrency moves saw Bitcoin down 8.6 per cent and Ethereum fall 9.8 per cent. The potential for tightening US monetary policy and the possibility of greater Chinese regulation has pushed Crypto prices downwards.
The US-10 year bond currently yields 1.528 per cent.
The oil price rose 0.5 per cent, with WTI Crude Oil trading at US$69.71.
Australian equities nudged forward yesterday with the S&P/ASX 200 trading up 0.2 per cent to 7,292.6 points at market close.
This week's earlier trading was influenced by a raft of developments and macroeconomic data. Firstly, the S&P upgraded the Australian Government's AAA sovereign outlook to stable, from negative, noting the country's "swift economic recovery" from the covid slowdown as a catalyst for the improved credit rating. Further economic data released on Tuesday included NAB's (Nation Australia Bank) consumer confidence for May which fell 3.7 points to 19.8. Although a fall from April, the index level remains close to the highest levels seen over the previous two decades.
Sector gains included Academic & Education Services along with Technology, each leading the way with 1.9 and 1.2 per cent increases, respectively.
Overall index movements were well supported by the single stock winner - Mesoblast Ltd. The medical company traded favourably after it published guidance for full-year earnings just before the close on Monday evening. Although Mesoblast's guidance re-iterated a difficult position, a loss of 90 cents per share beat investor expectations, resulting in an 8.8 per cent increase in share price.
Similarly, payment service provider EML Payments Ltd rose 6.0 per cent to round the day as the second largest outperformed.
On the other hand, markets were weighed down by both the Materials and Consumer Non-Cyclicals sectors which fell 0.5 and 0.2 per cent at the end of Tuesdays trading.
Collins Food Ltd, owner of various Australian food outlets including KFC, slipped 2.6 per cent to finish as the days single stock loser. Joining Collins was insurance company NIB Holdings Ltd which fell 2.1 per cent to continue downward momentum over the last five trading days.
• 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>