Jarden Brief: NZX falls, Asian markets mixed

The Shanghai Composite fell 0.1%, the Nikkei improved 0.7%, and the Hang Seng declined 2.3% overnight. Photo / Getty Images

Keeping you up to date with the latest market moves, in association with Investment firm Jarden

International
US

All major US indices were in the green at the time of writing. The S&P 500 turned a corner and improved 1.2 per cent, after falling for nearly two straight weeks. The Dow Jones Industrial Average increased 1.1 per cent and the Nasdaq rose 1.7 per cent. These movements are likely driven by traders digesting one of the busiest weeks of the country's corporate earnings season.

All but one sector was up at the time of writing. Consumer discretionary (+2.4 per cent), real estate (+1.7 per cent) and communication services (+1.7 per cent) were the best performers.

Signature Bank was the leading single stock at the time of writing, up 8.1 per cent after releasing first quarter results that saw net income rise to a record US$338.5 million, up $148 million from last year. Citizens Financial followed with a 7.7 per cent increase, as the bank posted a profit of US93 cents per share on revenue of US$1.65 billion, surpassing expectations. Medical device company Abiomed joined the winners' podium, rising 7.6 per cent

On the flip side, Dentsply Sirona dropped 12.3 per cent, as the dental products company announced it had "terminated" its chief executive officer (CEO) and expects net sales to be around US$965 million, down 1.4 per cent year on year. Insurance provider Travelers Companies fell 5.4 per cent, despite reporting a 48 per cent increase in core earnings for the first quarter. Rounding out the bottom movers at the time of writing was Pfizer, falling 4.1 per cent. The biotech company released clinical data demonstrating that a new version of its Covid-19 vaccine produced a stronger immune response against major variants of the virus, including Omicron and Delta.

Rest of the World

Asian markets were mixed overnight. The Shanghai Composite fell 0.1 per cent, the Nikkei improved 0.7 per cent, and the Hang Seng declined 2.3 per cent.

European markets closed mostly in the red. The FTSE fell 0.2 per cent. The DAX closed with a fall of 0.1 per cent and the CAC decreased by 0.8 per cent.

Commodities

Gold traded 1.4 per cent lower at US$1,959.6 per ounce.

WTI Crude Oil was also in the red, decreasing 5.1 per cent to US$102.73 per barrel.

The Cryptocurrency market was on the rise, with Bitcoin up 1.7 per cent and Ethereum rising 2.9 per cent.

The US 10-year Treasury rate rose five basis points to 2.913 per cent.

New Zealand

The NZX 50 fell by 0.4 per cent yesterday.

Manufacturing company Skellerup showed the best performance yesterday, increasing 2.8 per cent. The next biggest increase came from Meridian Energy, up 2.3 per cent, rebounding from declines last week.

Rounding out the gainers was Scales, rising 1.4 per cent.

On the flip side, Ryman Healthcare fell 4.4 per cent, down 37 per cent from the previous year.

Another underperformer was Pushpay Holdings, declining 3.7 per cent.

The a2 Milk Company closed out the biggest decreasing companies of the NZX 50, dropping 2.7 per cent.

Kiwi Property Group increased their FY22 dividend guidance, expecting to now pay a dividend of 5.6 cents per share, up from previously announced 5.3 cents per share. Kiwi Property closed yesterday unchanged.

Reserve Bank of New Zealand Governor Adrian Orr yesterday commented further on the increase of the Official Cash Rate (OCR) to 1.50 percent, announced last week. Orr highlighted the urgency to dampen inflation as expectations for the first half of the year peak around 7 per cent.

Governor Orr said the Reserve Bank could be letting inflation expectations get away from them by not increasing interest rates fast enough, however lifting them too fast runs the risk of dampening economic activity too much. He also mentioned that house prices are moving towards a sustainable level due to the actions of the Reserve Bank.

On a week-long trade mission to Singapore and Japan, the Prime Minister Jacinda Ardern yesterday announced changes to the working holiday scheme with Singapore. The changes include increases in the number of working holiday visas available, the age of eligibility and duration. They will be active from 5 May and are expected to benefit tourism, hospitality, and retail throughout New Zealand.

Australia

The ASX 200 closed in the green yesterday, up 0.6 per cent to 7,565.2 points, a new 50-day high.

Energy was the best performing sector, having gained 1.3 per cent. This was followed by materials, utilities and the financial sector, increasing 1.0, 1.0 and 0.9 per cent respectively. On the flip side, decreases were seen in the healthcare (-0.7 per cent) and information technology (-0.6 per cent) sectors.

Biotechnology company Imugene led the market, rallying 9.3 per cent on the back of what appears to be no news. Despite this gain, the firm is still down 45.4 per cent from the start of this year.

Cleanaway Waste Management increased 5.9 per cent. This follows reports from the Australian Financial Review, including speculation of a potential buyout of the company by a large private equity firm.

Rounding out the highest gains was the oil and gas exploration and production company Beach Energy, up 4.1 per cent.

Leading the underperformers was uranium production company Paladin Energy, down 2.6 per cent. Investors may be accounting for the slight drop in uranium prices yesterday, following a stagnation last week in the commodity price.

Fisher and Paykel Healthcare (dual-listed on the NZX and ASX) and transport services company Kelsian Group fell 2.6 and 2.5 per cent respectively.

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