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Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand
NZX Market Wrap-Up:
A solid day from the NZX 50 as it rose 0.6 per cent, led by Serko (+3.6 per cent), Port of Tauranga (+3.5 per cent) and Vector (+2.6 per cent).
Meanwhile, the worst performers on the index were Fletcher Building, down 2.5 per cent, and Sanford which fell 1.9 per cent.
Pacific Edge added 4 per cent yesterday to close at $0.77 per share, following its addition to the NZX 50 index.
Mercury Energy released their first quarter operational update, which posted a decline in hydro generation reflecting the continued record drought conditions in the Lake Taupo catchment area. Low inflows resulted in national hydro storage also being well below average levels. On the positive side, Commercial & Industrial sales yield and Mass Market sales yield lifted by 8.6 per cent and 6.6 per cent, respectively. Mercury traded slightly down yesterday to close at $5.28.
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PGG Wrightson hosted their AGM yesterday, providing guidance to the market it expected operating ebitda to be around $52m, a 30 per cent increase on last year (excluding the impact of new accounting standards). The Board also indicated that it intends to resume the payment of regular dividends, and that its interim dividend should not be less than 8 cents. The stock dropped slightly throughout the day, closing down one cent.
AMP is in the headlines once again, announcing that their New Zealand wealth management business will turn to passive investing to slash fees and reduce costs. The transition will leave BlackRock in charge of the division's investment services, which should take place by mid-2021.
International
US Markets:
At time of writing, the SPX500 was up 1.0 per cent, the Dow Jones Industrial was up 0.9 per cent and the Nasdaq was up 0.9 per cent.
All sectors in the SPX500 were in the green with Financials and Energy leading the way, up 1.9 and 1.3 per cent respectively. Healthcare performed the worst, although it still rose 0.6 per cent.
Automobile company General Motors was the best performer on the day, up 8.3 per cent. The gain was driven by the announcement of a US$2 billion investment in 5 plants across Michigan in the lead up to the manufacture of electric vehicles.
On the other hand, technology company IBM was the worst performing stock on the index, down 5.9 per cent. The fall was driven its failure to provide fourth-quarter forecasts alongside its third-quarter results, with Covid-19 being cited as the main reason. At the same time, project delays and purchase deferrals have been the result of delayed capital spending in the Covid-19 environment.
Asian markets:
At time of writing, the Shanghai Index was up 0.5 per cent and the Shenzhen index up 1.3 per cent while the Nikkei 225 was down 0.4 per cent.
Overnight, China has criticised the US for a meeting between Special Coordinator for Tibetan Issues Robert Destro and Tibet's exiled Presidente Lobang Sangay, who has been referred to as an 'anti-China separist'. This meeting is said to have violated a US commitment not to support Tibet's independence, thus threatening Tibet's "development and stability". When considering the path of future economic development and the tensions that may attend, it is important to assess the brand of world order each competitor seeks to usher in.
Commodities:
At time of writing, Gold was up 0.3 per cent, trading at US$1910.0 per ounce. WTI Crude was up 0.9 per cent, trading at US$40.6 per barrel. The ten-year treasury yield was up to 0.79 per cent.
Australia:
The ASX 200 slipped 0.7 per cent on Tuesday on the back of Wall street being weaker the night before and concerns of rising Covid-19 cases overseas. The Industrials and Real Estate sectors were the outperformers on the day, posting gains of 0.6 per cent and 0.3 per cent, respectively. While Financials and Basic materials led the index lower, posting losses of 1.2 per cent each, smaller cap stocks followed America's lead and performed better, with the Midcap 50 ending flat.
Afterpay rose 4.5 per cent after announcing a new digital deal with Westpac, with the deal being the first between a BNPL company and a major bank. The agreement will allow Afterpay to provide savings accounts and cash flow tools to Westpac's Australian customers, letting the Afterpay benefit from the scalable technology and infrastructure that Westpac has to offer without having to develop the resources themselves. News was also released about competitor Zip, who has announced a partnership with Visa – allowing their customers to use their platform anywhere that accepts Visa.
Property company Dexus has flagged a push to move into healthcare property, seeking to buy the Australian Bragg Centre in Adelaide for A$446.2 million. The move occurs amidst the Covid-related uncertainty around traditional retail and office towers, with the company perceiving healthcare as lower risk.
What to look out for:
Coming up today, Infratil are hosting their investor day in New Zealand, while Westpac's will be releasing economic data for the month of September.
• 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-disclaimer