NZX Market Report 6.6.23
6.6.23 Some unexpected corporate developments threw the sharemarket into a scrambled session today with the NZX50 eventually flat-lining. The index added 1.20 points at 11,882.10 with share prices mixed. The weekend rally on Wall Street petered out on the American Monday with the Dow Jones slipping 199.20 to 33,562.82. A limp Kiwi dollar also played negatively for Tourism Holdings which fell 25c to $3.45. F&P Healthcare lost 15c at $23.81. Mainfreight moved $2.50 upwards to sell at $70.50,...
EBOS loses Chemist Warehouse Australian contract
6.6.23 EBOS Group shares slid through the call on NZX today after the group told the market it has been informed by Chemist Warehouse that it intends to pursue alternative wholesale supply arrangements for its Australian stores. As a result, the lucrative contract held by EBOS will not be renewed beyond its expiry date of 30 June 2024. EBOS currently generates approximately $1.9 billion in revenue annually from the contract and will continue to perform services under the contract until the...
Good news for Cannasouth
6.6.23 Cannasouth Ltd, New Zealand’s largest publicly listed medicinal cannabis company, has achieved another significant milestone with the successful export of its first commercial scale shipment of high-quality dried cannabis-flower to Australia. This signals the commencement of Cannasouth’s export programme into Australia. Australia is a key market for Cannasouth. This market has achieved critical mass for prescriptions of medicinal cannabis, with exponential growth year-on-year. New...
Surprise setback for Pacific Edge
6.6.23 Cancer diagnostics company Pacific Edge (NZX, ASX: PEB) has applied for and been granted a trading halt over its shares on the NZX and ASX while it gains a better understanding about a development in the US market. The trading halt will remain in place until the earlier of the commencement of trading on Wednesday 7 June 2023 or the release of an announcement addressing the finalisation over the weekend of a Local Coverage Determination (LCD) detailing the proposed ceasing of...
US markets rally, Kiwi flat
6.y6.23 US equities remain well-supported taking the S&P to fresh 2023 highs and into bull market territory following the gains from the lows in October last year, notes BNZ Markets. The rally in equities has contributed to the VIX, a measure of expected volatility and investor risk appetite, falling to 15 which corresponds with the post-pandemic lows, says Stuart Ritson. US payrolls data easily beat expectations on Friday night which provided upward momentum for stocks and sharply higher...
Synlait Milk gains China re-registration for a2 IMF
6.6.23 Synlait Milk and its major customer the a2 Milk Company were jubilant today to finally clear the vital re-registration process by China to export a2 Milk IMF product to the major market. The approval news was advised to the NZX prior to the opening of trading on the sharemarket. Synlait Milk said it was ‘extremely pleased’ to announce that China’s State Administration for Market Regulation (SAMR) has notified successful re-registration of The a2 Milk Company’s Chinese labelled Infant...
MARKETWEEK: A weekend to ponder the portfolio
3.6.23 // Warren Head /// If the American stockmarket is still any sort of weathervane for global markets, the stage is set for a positive start to next week’s short trading week, after a 3-day weekend allowing time to mull over the portfolio. Overnight the US has thrust 710 points upwards on the Dow Jones, which reached 33,762.70, a gain of 2.12%, while the Nasdaq set its best market in over a year with a 1.07% gain to 13,240 and the S&P500 gained 1.45% at 4282. The reason: a massive...
NZ Market Report 2.6.23
The national sharemarket finished the week prior to the KB Weekend down 35.23 points to 11,880.90 after a tug-o-war between several leading NZX10 issues falling back and the energy sector moving higher. Overnight, the Dow Jones moved 153 points upwards to 33,061 as the US Congress voted to allow the US debt ceiling to be increased – averting a cash problem for the US Government next week. Cynics will comment that it was always going to end in an agreement – Locally, the attention fell on...
Cannasouth closes offer
30.5.23 Cannasouth has closed its offer to Cannasouth shareholders and to shareholders of Eqalis Group New Zealand. The offers closed on 24 May 2023 with approximately 24,751,456 new shares (together with 12,375,624 options) being taken up by eligible investors, comprising shareholders in Cannasouth, shareholders in Eqalis and a number of third-party investors, raising approximately $7,177,945. The Offers, together with the merger proposal with Eqalis were both conditional upon not less than...
Synlait refocussing, plans divestments
2.6.23 Synlait Milk says it needs to re-focus on its best opportunities and as s result intends to divest its Dairyworks and Talbot Forest Cheese businesses. Synlait's board and management are undertaking a strategy and capital structure refresh, including an asset review. To ensure greater focus and execution of Synlait's overall business strategy, the company intends to evaluate the divestment of Dairyworks and Talbot Forest Cheese. “Synlait has a clear competitive advantage, or right to...
