Broker Comment

Mainfreight has super year

26.5.22 The international freight forwarder and logistics group Mainfreight has notched up another record result and a ‘more than satisfactory’ improvement on the prior year. Revenue in the FY22 year has bounced 47.2% or $1.67 billion to $5.22 billion. Profit before tax $489.4 million Up $227.0 million or 86.5% Net profit $355.4 million Up $167.3 million or 88.9% Adjusted for foreign exchange impact, Group revenue is up 50.8%, and profit before tax is up 90.5%. There are no abnormal items in...

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Surprise for markets from Reserve Bank

The RBNZ sprung a hawkish surprise at the MPS yesterday, significantly revising up its forecast OCR track to show a peak of just under 4%, notes BNZ Markets. NZ rates moved sharply higher as a result, with the market moving to broadly align itself with the RBNZ’s new projections, while the NZD/AUD cross has reached a four-week high, says Nick Smyth. “ It’s been a quieter night in global markets. “Equity markets are generally higher, helped by the release of the FOMC minutes which hinted at a...

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Aussie banks hold ASX higher

25.5.22 Despite a mixed lead from Wall Street overnight, the Australian sharemarket finished 0.4 per cent or 26 pts higher, to 7155.2. Banks were noteworthy winners and were supported by a lift in US treasury yields and a hike in the New Zealand interest rate. Notes CommSec.. The big four banks all climbed by at least 1 per cent. The Tech sector on the other hand lost 3 per cent after a 2.4 per cent slide in the tech-heavy Nasdaq index dampened investor sentiment. At the close, 8 of the 11...

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Market report 25.5.22

The tone on NZX reversed today following the decision by the Reserve Banks monetary policy committee to lift the official cash rate 50bps to 2%. Though widely expected by economists as the only direction the OCR could take with inflation on the rise, the market read higher rates as a negative to company shares and the NZX50 fell 73.66 points to 11,173.37. Wall Street was stronger overnight, gaining 48.38 on the Dow Jones at 31,928.62 and the ASX All Ords gained 18.5 at 7391.7. Fisher &...

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Reserve Bank tops up cash rate

The Monetary Policy Committee today did exactly what the market had expected and increased the Official Cash Rate (OCR) to 2.0%. The Committee agreed it remains appropriate to continue to tighten monetary conditions at pace to maintain price stability and support maximum sustainable employment. The Committee is resolute in its commitment to ensure consumer price inflation returns to within the 1 to 3% target range. Consistent with the economic outlook and risks ahead, monetary conditions need...

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F&P Healthcare has strong year

25.5.22 Fisher & Paykel Healthcare Corporation’s results for the full year ended 31 March 2022 show another strong performance, although lower than the exceptional Covid-driven sales and earnings spike of 2021. Managing director and CEO Lewis Gradon said, “Over the last two financial years we have supplied $880 million of hospital hardware, the equivalent of approximately 10 years’ hardware sales prior to COVID-19. “The growing body of evidence supporting the use of nasal high flow and our...

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Reversal in risk sentiment

After a positive start to the week, risk sentiment is weaker again on the back of concerns about the earnings and growth outlook, says BNZ Markets this morning. This sees weaker global equities and global rates lower, says Jason Wong, senior market strategist. “Currency movements reflect the dataflow and sentiment, with GBP dragged down on a very weak PMI reading. EUR has been supported by some hawkish commentary from a couple of ECB GC members. The USD has been pulled in opposing directions,...

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Selling presssure on ASX

24.5.22 Despite reaching a high of 7165 (0.2%), the market succumbed to selling pressures and finished 0.3% or 20 points lower, to 7129. The local Info Tech sector weighed on the index after it posted its first loss in three days. But the Financials sector managed to cap losses after it was supported by a rally in the big-four banks. Of the 11 sectors, only 2 finished higher. The best performers today were Allkem (AKE) and Perseus Mining (PRU), which rose by 3.7% and 3.3%, respectively....

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Market report 24.5.22

24.5.22 The NZ reversed direction today, and down went many of the shares that held the market up on Monday. Mainfreight shed $1.15 at $75.81, Summerset fell 20c at $10.67 and Delegat dropped 40c to $12. Freightways peeled off 36c at $10.50. Energy stocks reversed, with falls by Meridian Energy -16c to $4.40, Mercury -11 to $5.72 and Contact Energy -12c at $7.67. Scott Technology was marked 15sc lower at $2.90. Napier Port lodged a lower interim result that was impacted by shipping disruption,...

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Bigger interim loss for Gentrack

24.5.22 Gentrack Group, which provides software solutions for utilities and airports, has reported an increased loss in the half-year to 31 March 2022. The first half of the financial year has seen Gentrack make excellent progress in two key areas. Revenue has grown well despite the turmoil in the UK Energy market, and our planned investments in Strategic R&D and in sales and marketing have really ramped up – with the expected impact on EBITDA and cash. Revenue  ot $57.1 million was up by...

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