Keeping you up to date with the latest market moves, in association with Investment firm Jarden
The NZX 50 decreased by 0.4 per cent despite an announcement that Auckland would move to alert level 3 at 11.59pm Tuesday while the rest of the country will remain in level 2. The Prime Minister urged the country to remain cautious as there are still active cases in the community.
Most sectors were in the red on Monday, with consumer cyclicals and financials booking the biggest losses, down 1.6 per cent each. Real estate was the only sector in the green, up 0.3 per cent, while utilities were flat – although Kiwi Property Group dropped 2.9 per cent, with its heavy exposure to retail assets.
The best performers of the NZX 50 yesterday are all in property management and investment. Goodman Property Trust increased by 1.6 per cent, followed by Vital Healthcare Property Trust (+1.1 per cent) and Precinct Properties New Zealand (+0.9 per cent). Precinct announced the conversion price for its subordinated convertible notes to be $1.40. The conversion date will be on 27 September 2021.
On the flipside, church donation platform Pushpay Holdings was the worst performer of the day, dropping 4.6 per cent following a strong Friday trading session which was bolstered by index-related trading flows.
Sky Network Television also underperformed, down 3.3 per cent.
US markets were all in the red this morning at the time of writing, with the S&P 500 down 2.6 per cent, the Nasdaq 3.1 per cent lower, and the Dow Jones Industrial Average trading down 2.5 per cent. The Dow is on track for its biggest one day drop since October 2020.
This comes as investors fear contagion from the troubled China property market, as well as Covid-19 concerns which continue to present downside risk. The Federal Reserve has also begun a two-day meeting – the result of which could signal a reduction in stimulatory monetary policy.
All sectors declined with energy and financials leading the downwards pressure, falling 4.4 and 3.4 per cent, respectively.
Invesco fell 10.0 per cent with rumours of a merger continuing to circulate.
Nucor declined 9.7 per cent. The steel company decline is likely linked to global growth concerns. Devon Energy was down 7.8 per cent with WTI Crude Oil falling 2.6 per cent overnight.
American Airlines rose a slim 1.1 per cent as the top performer. This follows the announcement that the White House would ease international travel restrictions for vaccinated travellers.
CenterPoint Energy rose 0.8 per cent and Alexandria Real Estate Equities rose 0.6 per cent.
Rest of the World:
The Hang Seng (Hong Kong) traded down 3.3 per cent, the Shanghai Composite (China) rose by 0.2 per cent, and the Nikkei (Japan) recovered 0.6 per cent overnight.
The Hang Seng dropped as shares of the Chinese developer Evergrande Group continue to fall, down 10.2 per cent overnight. Evergrande Group is at risk of default, warning that it is struggling to pay suppliers. Risk of collapse potentially extends to other highly indebted developers, as well as the wider Chinese economy, which is highly influenced by its housing market.
Gold rose 0.6 per cent to US$1,762.00 per ounce. WTI Crude Oil fell 2.6 per cent, now priced at US$70.08 per barrel while the 10-year US bond yield trades at a 1.307 per cent yield.
Cryptocurrency slid significantly, with Bitcoin trading down 8.3 per cent and Ethereum down 8.7 per cent.
The S&P/ASX 200 fell sharply yesterday with the index slumping 2.1 per cent to 7,248.2 points, its largest single day drop in more than six months.
Dragging the market down were sector losses from materials and energy, falling 3.7 and 3.0 per cent, respectively.
Investors were tentative to start the week as a higher US dollar and a declining iron ore price impacted some of the larger cap mining firms. Champion Iron, Lynas Rare Earths, and Pilbara Minerals all recorded losses of 12.3, 11.8, and 9.6 per cent, respectively.
Furthermore, mining and exploration companies made up nine of the 10 underperforming stocks for Monday.
Only one sector outperformed against the run of the tide, as utilities finished higher by 3.0 per cent.
AusNet Services led the way with a strong performance, up a staggering 19.2 per cent at yesterday's close. The power grid operator made headlines after it received a takeover bid from Canadian firm Brookfield Asset Management. The offer valued AusNet at A$9.6bn and A$2.50 per share, which was a 26 per cent premium to its previous closing price.
The indicative proposal is subject to several conditions, including due diligence, unanimous support and recommendation from the Board of Ausnet, and execution of a scheme implementation deed.
Similarly, hospitality company Endeavour Group advanced 2.2 per cent to finish as the day's second top performer.
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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-disclaimera>