Keeping you up to date with the latest market moves, in association with Investment firm Jarden
NZX Market Wrap-Up: SkyCity and Kathmandu lead NZX rally
Consumer-facing stocks SkyCity Entertainment (up 4.1 per cent) and Kathmandu (4.5 per cent) led the market up, and heavyweight stocks Fisher & Paykel Healthcare (2.7 per cent), A2 Milk Company (3.3 per cent) and Auckland International Airport (3.7 per cent) boosted the index's gains with NZX 50 closing up 1.6 per cent.
Aged-care stocks continued creeping up, with Arivda, Oceania Healthcare, Ryman Healthcare and Summerset all rising.
Vector rose slightly after providing full-year performance results to June. Total electricity customers were up 1.6 per cent to 580,060 and gas customers up 2.1 per cent to 113,960. However, electricity distributed was down 1.1 per cent.
Air New Zealand also rose by 2.7 per cent. The company has allegedly seen $1.4 million of credits used for rebooking new flights within 24 hours of its new tool going live.
Cannasouth rises after announcing partnership with US market leader
NZX-listed medical cannabis researcher and developer Cannasouth has announced a new joint venture with Vera Cultivation, a Colorado-based, market-leading cannabis producer.
Vera will help Cannasouth design their cultivation facility, develop licensed operating systems and procedures, and provide support for implementation of growing facilities over the next 30 months.
Cannasouth coupled this news with announcing they have appointed John Sanders as chief commercial officer. Sanders has a background in sales, marketing and general management.
Cannasouth shares rose 6.1 per cent in response and now trade at $0.52. This represents a 30 per cent premium on its $0.40 listing price in June last year.
Tilt Renewables solid progress on Waipipi Wind Farms construction
Australasian electricity generator Tilt Renewables has announced completion of its first turbine at Waipipi, now the largest wind turbine in NZ in both generation capacity and size. The renewables generator also noted that construction is progressing well with 18 out of 31 turbine foundations poured and commercial operation of the windfarm anticipated to commence in its first quarter of 2021. Tilt closed at $3.63 yesterday and is up 10 per cent compared to the start of the year.
International Market Wrap-Up: Markets gain with Tech sector lagging
At the time of writing, the Shenzhen market (+0.67 per cent) and the rest of the Chinese markets were all up. There was positive news out of Europe with the European Union coming to an agreement on the largest stimulus package in history at EU$750 billion.
The FTSE and Dax were up 0.13 per cent and 0.67 per cent respectively on the news.
With speculation that Congress will also agree on another package deal, American markets continued to rally with the Dow Jones up 0.53 per cent, the S&P500 up 0.1 per cent, but the Nasdaq underperformed down 0.91 per cent. The tech sector (-1.12 per cent) fell off after yesterday's massive outperformance.
At the time of writing Wells Fargo is up 6.18 per cent after announcing Mike Santomassino will replace John Shrewsberry as CFO. Amazon fell 1.76 per cent after enormous gains yesterday as they confirm they will delay their biggest shopping event of the year. UBS posted net profit this quarter at US$1.13 billion, beating expectations of US$973 million by 16 per cent. UBS was trading up over 3 per cent at time of writing.
Lockheed Martin also beat EPS expectations by 7 cents per share, driving the stock up 2.62 per cent.
Oil has rallied over 3 per cent to US$41.10 a barrel. Gold also had a strong day, up over 1.5 per cent and approaching US$1850 per ounce. The US 10-year treasury note continues to decline, now at 0.60 from 0.61 yesterday.
ASX Market Wrap-up:
The S&P/ASX200 recorded its strongest day since April as vaccine trials continue to show promise. The index closed at 6156.3 points, climbing 2.6 per cent. It is the highest close since March 5 when the index was 6396 points. The leading sector on the day was Technology as it rallied on strong overnight performance, rising an astounding 5.7 per cent. All sectors were strong with the relative laggard on the day Utilities (+1.22 per cent).
Nearmap surged 11.2 per cent to $2.49 and Afterpay closed 8 per cent higher on $75.05. Travel stocks performed well amid positive vaccine news as Corporate Travel rose 9.9 per cent, Flight Centre advanced 7.4 per cent and Webjet had strong gains closing the day 6.9 per cent up. Telecom and Alumnia performed poorly, falling 2.5 and 2.0 per cent respectively.
Downer EDI announced an A$400m fully underwritten, non-renounceable entitlement offer at A$3.75 per share (10.3 per cent discount to theoretical ex-rights price). The offering is designed to strengthen the balance sheet, fund acquisition of the remaining shares in Spotless and provide flexibility for continued investment in DOW's core business.
BHP experienced record sales volume, shipping 77.04 million tonnes from Western Australia in the three-month period to June 30, up 6.4 per cent on the previous comparable quarter. Though this result came despite Covid-19 headwinds, the results were somewhat soft compared to analyst consensus.
Quarterly production reports are expected today from mining companies, Oz Minerals and Lynas, and oil company, Beach Energy
The US have existing home sales data out tomorrow, which gives insight into the liquidity in the housing market and indicates sustainability of asset values.
There is a big day in earnings tomorrow with Microsoft and Tesla both reporting. There has been speculation over the last month Tesla will join the S&P 500, which may have been a contributing factor to their performance, as the company was up over 50 per cent for the period.
To be considered for inclusion, Tesla must post a fourth quarter profit, thus anything below expectations may cause volatility in the share price tomorrow. Microsoft are also expected to post gains, their PE ratio being at its highest level since the early 2000s, at 28.3. Analysts are looking at revenue to increase by 10 per cent while earnings are likely to marginally increase.
For more information on the latest market moves, get in touch with Jarden .
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.
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