Jarden Brief: The winners and losers on a tough day for the NZX

Medicinal cannabis company Rua Bioscience debuted on the NZX yesterday. Photo / Supplied

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

New Zealand

The NZX50 pulled back yesterday as it closed down 0.2 per cent. The worst performers were Chorus (-2.1 per cent) and Fisher & Paykel Healthcare (-1.7 per cent).

The best performers were NZX, up 2.9 per cent, Fonterra rose 2.4 per cent and Auckland Airport performed well off its AGM to rise 2.2 per cent. Z Energy was also strong ticking over $3.00, only to close the day at $2.99, a 2 per cent rise.

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Restaurant Brands reacted positively to its third-quarter update, as it lifted 1.9 per cent to $12.23. Total store sales were up for the third quarter across all regions, NZ (+5.4 per cent), Australia (+9.1 per cent) and Hawaii (+5.1 per cent). Total year to date sales were also broadly flat (+0.2 per cent) compared to the previous corresponding period, excluding the impact of the Californian acquisition. It was a strong result given the shutdown in New Zealand and no dine-in available in Hawaii and Australia, with initial trading in California also promising after one month.

At its AGM, Auckland Airport noted that its first-quarter was better than anticipated, averaging $10 million per month compared to the losses they were expecting. However, the airport remains in a challenging backdrop, with a difficult recovery ahead.

Medicinal cannabis company, Rua Bioscience, commenced trading on the NZX today. It's IPO offer price was $0.50 with the stock closing at $0.68 today.

International

US Markets:

At time of writing, the S&P500 was up 0.3 per cent, the Dow Jones Industrial was up 0.4 per cent and the Nasdaq was flat. Smaller stocks outperformed significantly as the S&P Midcap 400 was up 1.4 per cent.

Energy and Financials were the best performing sectors on the day, up 3.2 and 2.0 per cent, respectively. Real Estate and Technology were the worst-performing sectors on the day, down 0.4 and 0.1 per cent, respectively.

Orthodontics company Align Technology was the best performing stock on the index, up 33.4 per cent. The gains came after a report of booming third-quarter earnings, driven partly by effective campaigns using social media influencers. While analysts had expected earnings of US$0.54 cents per share, the company delivered US$1.76 cents per share.

The worst performer on the index was insurance company, Cincinnati Financial Corporation, down 9.1 per cent. Investors have been selling in anticipation of negative news in the upcoming third-quarter earnings report.

Asian markets:

The Shanghai Index was down 0.4 per cent and the Shenzhen Index declined 0.5 per cent. Meanwhile, the Nikkei 225 dropped 0.7 per cent.

Huawei Technologies has successfully spent the months leading up to the Trump administration's sanctions stockpiling crucial radio chips. Their stores are now sufficient to ensure they can continue to rollout 5G technology across 2021. Since 2018, the US has been trying, with limited success, to curtail the Chinese technology giant's activities.

Commodities:

At time of writing, Gold was down 1.2 per cent, trading at US$1901.50 per ounce. WTI Crude was up 1.6 per cent, trading at US$40.6 per barrel. The ten-year treasury yield was up to 0.85 per cent.

Australia:

The ASX 200 slid heavily in the morning session before recovering in the afternoon to finish down 0.3 per cent.

Basic materials (+0.3 per cent) outperformed on the day with rising commodity prices the night before. Mining company, Oz Minerals, posted 5.3 per cent gains, with the company releasing its third-quarter report noting a lift in its gold production guidance from its hill operation.

Healius was the top-performing security for the index, climbing 9.3 per cent after reporting its pathology revenues have been strong in the first quarter of the new fiscal year.

Energy and Utilities were the largest sector underperformers, down 1.9 and 1.1 per cent respectively.

Commercial retail property giant, Unibail–Rodamco–Westfield, fell substantially today (-9.3 per cent), after rejecting calls to sell US assets.

AMP fell another 5.6 per cent after the troubled company revealed there were A$2.4 billion net outflows for the September quarter. Despite this, the assets under management increased to A$121.4 billion over the quarter, 3 per cent higher than June 30, but well below levels seen last year of A$133.2 billion.

What to look out for:

A busy day to end the week, with Markit manufacturing PMI flash, Markit Services PMI flash and Markit Composite PMI flash for the October month. All are forecast lower than September levels. A number of AGMS today in Australia also with Dexus, IAG, Qantas and Worley.

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