Broker Comment

Market Report 12..22

The NZ sharemarket closed off the week with a 29.49 points fall to 11,730.52.  Overnight, the Dow Jones had reflected investors’ confidence after some strength in recent weeks.  The Dow added 27.16 points at 22,336.67 – but the session had been 266 points higher in mid-morning UST. Cannasouth intends to launch a 1 for 10 pro-rata renounceable rights issue to raise up to circa $4.1m. The rights offer price is $0.30 per new share. Cannasouth shares rose 1.5c to 40c. Mainfreight fell 34c to...

read more

ASX broadly higher

The Aussie sharemarket briefly hit fresh 2-month highs earlier in the session, with the ASX 200 finishing 78.3 points or 1.12 per cent higher to 707, records CommSec. Ten of 11 sectors finished higher, with the Materials (up 1.5 per cent) and Financials (up 1 per cent) sector also posting gains. Tech shares improved by 1.3 per cent, rebounding from yesterday’s 3.8 per cent decline. Today’s rather broad-based gains were helped in part by a lift in global sharemarkets overnight, following softer...

read more

Market Report 11.8.22

It may be a mystery for some investors as to why a 535 point advance on the Dow Jones last night (to 33,309.51, +1.63%) is followed by a feeble 7.92 points rise in  the NZX50 today at 11,760.01. The answer is that the causes of the American stockmarket leap are purely domestic. The rise on Wall Street followed an unexpected drop in US inflation. That suggested less requirement for a long programme of rate hikes by the Federal Reserve to check inflation. One might argue that the midweek...

read more

House prices in descent

The latest REINZ report revealed a further cooling in the housing market. House sales (July month): 4,822* Monthly % change: -3.1% (Prev month -11.2%) Annual % change: -36.7% (Prev month -36.1% House Price index* Monthly % change: -1.7% (Prev month -1.0%) Annual % change: -2.9% (Prev month +0.7%) The REINZ house price index fell another 1.7% over the month and prices are now down 3% compared to the same month last year. “We have not seen year-on-year house price falls since 2011, when the...

read more

Higher pay-out by Vital Healthcare

11.8.2 Vital Healthcare Property Trust has increased the distribution rate on its listed units as part of the  results for the June 2022 year. NorthWest Healthcare Properties Management Limited (NorthWest), the manager of Vital, confirmed 9.625 cents per unit (cpu) distributions for the year; 8.5% above FY21. NorthWest said the increase in distributions was underpinned by strong growth in earnings and recent asset acquisitions and development activity. Fund Manager Aaron Hockly said Vital's...

read more

Rakon guidance for strong FY23

11.8.22 Rakon, which manufactures frequency control and timing solutions, expects Underlying EBITDA for the March 2022 year to range between $36 million and $44 million, it advised NZX this morning, ahead of its annual meeting today. Even at the bottom of this range, the result would represent the second-best ever reported by the company, Rakon stated. The guidance compares to the record $54.4 million Underlying EBITDA achieved in the 2022 financial year, a result lifted by the short-term...

read more

Market reacts to lower US CPI

For a change, US CPI inflation surprised to the downside and this triggered a significant market reaction, says BNZ Markets this morning. US short end rates are lower but the 10-year rate is back to flat on the day after an earlier fall, said Jason Wong, senior markets strategist. “Risk appetite has exploded higher, driving a 2% gain in the S&P500 and an outsized move in currencies, with the USD down more than 1% and the NZD up more than 2% to 0.6420. “The much-anticipated US CPI report...

read more

Weaker trading on ASX

10.8.22 The Aussie sharemarket remained in negative territory throughout the session, was down by as much as 0.6 per cent in early trade, before the ASX 200 finished 37.1 points or 0.53 per cent lower to 6992.7, notes CommSEc. Today’s loss erased gains recorded over the past two sessions, said Divik Nigam.The Tech sector had its worst day in around two months after falling 3.78 per cent. The Financials sector capped losses after rising 0.53 per cent. Mining stocks snapped three straight days...

read more

Market report 10.8.22

The NZ sharemarket flat-lined today with a 1.39% drift to  11,752.09. In the US the Dow Jones Industrial Average edged 58.13 points down to 32,774.41. A2 Milk received a mild rebuff from the US agency reviewing IMF applications from producers of infant milk formula, declining to review any at this time. It was definitely not a rejection slip but the market took a negative view of the blocking action by the FDA and carved 42c or 7.46% off a2 Milk’s share price at $5.21. Vulcan Steel shed 28c at...

read more

US defers IMF reviews

  The a2 Milk Company (advised that earlier today it received notification from the US Food and Drug Administration (FDA) that, at this time, the FDA is deferring further consideration of the company’s request for enforcement discretion to import infant milk formula (IMF) products into the US. The company has also subsequently been advised by the International Dairy Foods Association (IDFA) that equivalent letters have been sent to all pending enforcement discretion applicants, indicating...

read more