The construction industry has been boosted by record consents. Photo / Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand:
The NZX 50 was in the green again yesterday, up 0.3 per cent.
It was a particularly good day for larger stocks, with the NZX 10 gaining 0.8 per cent.
In sectors, consumer cyclicals and healthcare rose 1.7 and 0.5 per cent, respectively. On the downside, real estate and technology fell 0.5 and 0.4 per cent, respectively.
SKY Network Television had another strong day, up 8.0 per cent following Monday's 6.0 per cent rise. SKY announced the expansion of a long-term relationship with WarnerMedia this week. Yesterday's price movement brings SKY to a six-month share price high.
Fletcher Building rose 3.0 per cent. This could be related to the New Zealand building consents data which was released yesterday. The number of new homes for the year ended July 2021 rose 20 per cent on the previous year. 45,119 new homes were consented. On a regional level, Auckland, Bay of Plenty and Canterbury experienced the most growth, with consents rising 29, 24 and 19 per cent, respectively.
Meridian Energy gained 2.3 per cent.
Sanford fell 2.8 per cent and was the worst performer of yesterday's session. The seafood company released a market update outlining a moderating second half expectation with mussel pricing continuing to be a "key challenge with Covid impacting global demand". It mentioned that improvements in wildcatch and salmon demand had "not been enough to offset weakness in mussels".
Heartland Group and Scales both declined by 2.5 per cent. Heartland Group released its disclosure statement for financial year 2021, ended 30 June.
International Markets:
US:
US markets were relatively flat at time of writing. The S&P 500 was down 0.1 per cent, the Nasdaq was unchanged, and Dow Jones Industrial Average down 0.1 per cent. The S&P is poised to return seven winning months in a row.
Sector gains include real estate and communication services, each leading the way with 0.4 per cent increases.
These sector gains were well supported by the single stock winner, with oil and gas exploration company APA Corp cashing in on the current electricity shortage (up 4.3 per cent) with the aftermath of hurricane Ida leaving more than a million US citizens without power.
Retail Pharmaceutical company Walgreens Boots Alliance has also had a strong morning, advancing 4.2 per cent after announcing the implementation of a US$15 minimum wage for its workers. The company's ability to do so likely signally a strong financial position.
In contrast, downward pressure on indices was drawn from sector losses of materials (down 0.4 per cent) and utilities (down 0.5 per cent).
NXP Semiconductors NV (semiconductor manufacturer) fell 5.7 per cent, while banking giant Wells Fargo dropped 4.7 per cent amidst the bank potentially facing further sanctions in relation to previous regulatory run ins.
Rest of the World Markets:
Another positive day amongst Asian markets. Highlights include the Hang Seng, Nikkei, and Shanghai Composite posting wins of 1.3, 1.1, and 0.5 per cent each.
Overnight data included China's factory activity, with the Purchasing Managers Index (PMI) coming in slightly weaker for the month of August at 50.1 compared to July's 50.4.
Commodities:
In commodities this morning, Gold is trading stronger by 0.25 per cent at US$1,816.7 per ounce. WTI crude oil edged lower ahead of OPEC's meeting this Wednesday, now priced US$68.54 per barrel (down 1.0 per cent). Yields are trading mostly unchanged, with the 10-year now priced at 1.30 per cent.
Lastly, crypto's were mixed over a 24-hour period. Bitcoin currently trades lower by 2.5 per cent with Ethereum up 2.1 per cent, respectively.
Australian Markets:
On Tuesday, the ASX 200 crept up by 0.4 per cent, ahead of Australia's second-quarter GDP numbers released later today.
Eight of the 11 sectors ended the session in the green, with information technology (+1.9 per cent) and industrials (+1.2 per cent) posting the biggest gains. Energy and utilities were the laggards of the day, declining by 1.4 and 1.2 per cent, respectively.
Clinuvel Pharmaceuticals was the best performer, rallying 10.7 per cent, setting a new 52-week record. The biopharmaceutical company seemed to advance further on the back of its strong financial results released last week.
Machine learnings service provider Appen increased by 7.0 per cent, reversing some of the losses made last week. The performance came despite going ex-dividend.
Rounding out the leader board, was Wisetech Global, a provider of software solutions for logistics companies, rising 5.7 per cent, continuing a strong upwards trend over the past month.
Biotechnology company, Mesoblast, decreased by 15.9 per cent, after releasing its 2021 full year financial results. The company experienced a 77 per cent decrease in sales and accumulated a net loss of US$98.8 million. Additionally, it will have to conduct further clinical studies for the drug remestemcel-L to receive FDA approval. The drug is planned to be used for treatment of the Covid-19 associated acute respiratory distress syndrome.
Resources and energy consultant, Worley, also underperformed, falling 3.8 per cent, going ex-dividend yesterday.
Gold exploration company, Regis Resources, declined 3.5 per cent after releasing its 2021 full year results.
New South Wales reported a further 1,164 Covid-19 cases yesterday. NSW Health's latest report shows that the majority of all cases in the state are unvaccinated. According to the report, 82.9 per cent of hospitalised cases between June 16 and August 14 had not received their first dose.
Meanwhile, the Victorian Premier Daniel Andrews is looking at a soft lockdown for his state, as cases are stabilising. Restrictions might be cautiously lifted, as long as cases stay below a certain threshold. Victoria reported 75 new cases on Tuesday and two Covid-19 related deaths.
• 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-disclaimera>
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