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Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand equities had another slow day on Thursday following Wednesday's 1.6 per cent loss, finishing 0.9 per cent lower to 12,497 points. This is the lowest level since 21 June 2021.
The retirement sector weighed down the NZX 50 with both Ryman Healthcare and Summerset Holdings falling 3.7 and 3.3 per cent, respectively. Seafood company Sanford booked the biggest losses, down 4.4 per cent.
Fuel retailer Z Energy released a solid trading update to the market on Thursday morning, providing an EBITDA guidance of $270-310 million for the fiscal year 2022. The market has kept a close eye on the company after Z Energy announced it had accepted a takeover bid from ASX-listed Ampol in October 2021. Z Energy finished the day higher by 0.6 per cent closing at $3.60.
Alongside Z Energy, Thursday's winners included healthcare company Pacific Edge (+1.6 per cent), campervan rental provider Tourism Holdings (+0.7 per cent).
Other economic data to make headlines was the New Zealand Institute of Economic Research (NZIER) quarterly survey of business opinion, further highlighting cost pressures affecting the New Zealand economy. For the quarter ending December 2021, 65 per cent of businesses expected to increase prices in the first part of 2022, while 34 per cent of firms expected a worsening of economic conditions over the same period.
The major US indices seemed to have turned around this morning after the NASDAQ hit correction territory on Wednesday, with all three trading in the green at the time of writing. The S&P 500 rose 1.3 per cent, the Dow Jones Industrial Average increased 1.1 per cent, and the Nasdaq traded 1.8 per cent higher.
All sectors performed well, with technology (+1.8 per cent), utilities (+1.3 per cent), and real estate (+1.3 per cent) booking the biggest gains.
The S&P 500 was led higher by Solaredge Technologies, which rose 5.7 per cent. The inverter solution provider for solar photovoltaic systems received positive reviews from JP Morgan and Goldman Sachs.
Energy technology company Enphase Energy also performed well, at the time of writing, increasing 5.4 per cent.
Rounding out the leader board was Travelers Company, up 5.1 per cent, hitting a 52-week high. The holding company of subsidiaries involved in commercial and personal property, and casualty insurance products and services, reported its fourth quarter 2021 results before market open. The company delivered a US$5.20 per share profit, well above analysts' expectations of US$3.86.
On the other hand, financial holding company Regions Financial Corp underperformed, decreasing by 3.5 per cent. The company reported its fourth quarter 2021 earnings, showing that quarterly earnings decreased to 43 cents per share, down from 61 cents per share a year ago. Analysts expected 47 cents per share. Revenue declined to US$1.63 billion versus US$1.69 billion in the previous corresponding period.
M&T Bank Corp and People's United Financial also provided their quarterly earnings results before market open, declining 3.2 and 2.9 per cent, respectively.
M&T Bank delivered earnings per share of US$3.37 for the fourth quarter compared to US$3.52 for the quarter a year ago. Net income also decreased for the period from US$471 million a year ago down to US$458 million.
The major Asian indices delivered another mixed performance overnight. The Shanghai Composite decreased 0.1 per cent, the Nikkei rose 1.1 per cent, the Hang Seng rallied 3.4 per cent, and the Shenzhen declined by 0.1 per cent.
Hong Kong's Hang Seng benefited from investors turning back to property and technology stocks. Additionally, China's central bank has cut key lending rates. The one-year loan prime rate (LPR) was reduced form 3.8 per cent to 3.7 per cent, while the five-year LPR was cut from 4.65 per cent to 4.6 per cent. These reductions are said to be implemented to push down borrowing costs, making mortgages cheaper - making people more likely to buy houses.
Tensions in Ukraine are rising as Russia is assembling troops near the border. This prompted the North Atlantic Treaty Organisation (NATO) to regroup over defences in the region. There are also reports that non-NATO countries like Finland and Sweden are considering joining the organisation.
Gold edged slightly lower, down 0.1 per cent to US$1,842.0 per ounce, as investors turned back towards equities.
Oil continued its upwards trend, rising a further 0.8 per cent, trading at US$87.65 per barrel, at the time of writing.
Cryptocurrencies were all in the green this morning. Bitcoin increased 3.6 per cent and Ethereum was up 4.0 per cent.
The US 10-year treasury rate was yielding 1.838 per cent.
The ASX 200 rose a slim 0.1 per cent yesterday. Key contributing sectors were materials and energy, rising 3.0 and 0.8 per cent, respectively.
Shining as the top performers yesterday were gold miners Northern Star Resources and Evolution Mining.
Northern Star Resources rose 11.2 per cent after flagging A$950 million in sales revenue for the three months to the end of December 2021. The quarterly report outlined sales of almost 393,000 ounces of gold, and the company being on track to meet its 2022 financial year sales and cost guidance.
Evolution Mining increased 8.9 per cent. While no news was released by the company, investors' positive sentiment may be a combination of a 1.7 per cent gold price rally the previous night and a projection of the Northern Star Resource's result.
On the flip side, telecommunication services and consumer staples were underperforming sectors, falling 1.2 and 0.9 per cent, respectively.
Transport firm Kelsian Group declined 5.7 per cent and REIT company Uniti Group lost 3.9 per cent.
In macroeconomic news, the unemployment rate dropped to the lowest level in more than 13 years, coming in at 4.2 per cent, with 64,800 jobs added to the economy in December, according to The Australian Bureau of Statistics. However, the survey period did not include economic disruption associated with the current Omicron wave.
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Disclaimer: The Jarden Brief is provided for general information purposes only. It reflects views and research available 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. The Jarden 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 financial advice disclosure statement is available free of charge at https://www.jarden.co.nz/our-services/wealth-management/financial-advice-provider-disclosure-statement/ Full disclaimer available at: https://www.jarden.co.nz/wealth-sales-and-research-disclaimer
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