Keeping you up to date with the latest market moves, in association with Investment firm Jarden.
International
US
US Markets were closed for Presidents’ Day.
Jarden Brief: Car battery wheeler dealers send lithium market into a flap
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Pilbara Minerals had a day to forget after upheaval in the EV market sent lithium prices haywire. Photo / Supplied
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Rest of the World
European stocks closed slightly higher. The European Stoxx 600 Index and FTSE 100 both increased 0.1 per cent.
Asian markets were in the green with the Hang Seng up 0.8 per cent, Shanghai Composite 2.1 per cent higher and Nikkei gaining 0.1 per cent.
Commodities
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Brent Oil is currently trading up 0.9 per cent at US$83.80 a barrel, recovering some of last week’s losses on improved supplies, while gold is trading flat at US$1,8841.30 per ounce.
The US 10-year Treasury bond increased 3 basis points to a yield of 3.86 per cent.
Bitcoin continues its recovery, gaining 1.5 per cent at US$24,836.90.
New Zealand
The NZX 50 Index declined 2.0 per cent yesterday,
Earnings season continues to hold focus in New Zealand and Australia.
The A2 Milk Company released its interim financial year 2023 result.
Revenue rose 18.6 per cent on the prior comparable period, and earnings before interest, tax, depreciation and amortisation rose 11 per cent.
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A key driver of A2 Milk’s sales growth was its China label infant formula business which helped offset largely flat English label sales. A2 Milk declined 7.4 per cent yesterday.
Chorus also announced its interim financial year 2023 result yesterday.
Net profit for the period declined 79 per cent with the decrease attributed to rising interest rates and the need to refinance a large tranche of debt due for repayment later in 2023.
The interim dividend of 17 cents per share is 3 cents per share higher than the previous interim dividend. Chorus eased off 2.4 per cent.
Scales released a market update on the impact of Cyclone Gabrielle on the Hawke’s Bay region.
The material impact is to Mr Apple’s orchards with four of 15 orchards with extensive or moderate damage.
Further limited crop damage is also anticipated to the remaining orchards. Scales does not forecast any material operating impact on its other business units, which accounted for the majority of group operating profits for previous years. Scales increased 3.5 per cent yesterday, the top mover of the NZX 50.
Australia
The ASX 200 traded up 0.1 per cent.
Pilbara Minerals share price declined 5.4 percent after weakness in lithium stocks in the US on Friday following the world’s largest battery manufacturer CATL offering discounts to some of the Chinese automakers it supplies.
Pilbara Minerals announced yesterday that it has entered into a sales arrangement for a 15,000 tonne cargo of spodumene (a source of lithium) concentrate for delivery in the March quarter.
BlueScope Steel share price declined 10.0 per cent after announcing at its interim result a 64 per cent decrease in profits on the back of lower earnings amid softening steel prices.
At the result, BlueScope Steel defended a one-billion dollar investment in carbon-based steelmaking to reline a mothballed blast furnace at Port Kembla, while telling shareholders the Federal Government’s proposed changes to the safeguard mechanism could have a material impact on its business.
These changes require a 4.9 per cent yearly reduction in emissions until 2030 to align with Australia’s 43 per cent emissions reduction target by 2030.
Private health insurer Nib Holdings share price declined 11.6 per cent, also on the back of its half year result. A 12.8 per cent increase in net profit after tax was below market expectations. Nib declared a 13 cents per share interim dividend.
Coming up today
In New Zealand the producer’s price index (PPI) comes out while Mercury NZ and PGG Wrightson release earnings.
In Australia, RBA Minutes are released and there are earnings results from: BHP, Stockland, Estia Health, HUB24, Coles Group, Costa Group, ARB Corp, Johns Lyng Group, Ingenia Communities, Monadelphous, Tabcorp Holdings, SEEK, Coronado Global, Perenti Ltd, Alumina, and Judo Capital.
For more information on the latest market moves, get in touch with Jarden.
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
All market pricing and announcements are sourced from Refinitiv, NZX and ASX.
