Broker Comment

MARKETWEEK:  Brighter stars for equities this week

The stars of Matariki (Courtesy NASA) 26.6.22 // Warren Head // The big economic questions of the month continue to swirl around inflation, interest rates, recession. But it’s time for a break from the repetitiveness of the drip-drip newsflow. Not that it’s easy just to find a Matariki hideaway (at any sort of reasonable rack rate, anyway) and entirely go off the grid. The mid-winter business pulse is a bit depressing with consumer and building confidence low. The shortages of building...

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Aussie market manages modest gain

The ASX 200 edged higher by 19.9 pts or 0.31 per cent to 6528.4, fading from this morning’s best levels, when the index was up by as much as 0.66 per cent, reports CommSEc. “Resource stocks fell most after the Materials and Energy sectors shed 1.5 per cent and 2.1 per cent, respectively. “This comes on the back of a slump in commodity prices overnight. Interest-rate sensitive Real Estate, Tech and Financial sectors all posted gains of at least 0.7 per cent Nine of 11 sectors finished in...

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Market report 22.6.22

  The NZ sharemarket has closed the shortened Matariki holiday week with another sound advance with solid gains by several leading stocks. The NZX50 has gained 135.25 points or 1.27% at 10,813.92. In the US the Dow Jones gave up some of the substantial gains of midweek, easing by 47.12 to 30,483.13. In Australia the ASX 30 rose 19.90 pts at 6,528.40. Among declines, Restaurant Brands lost a further 24c at $10.80, while EBOS drifted off by 14c at $39.91. Freightways fell 9c at $9.21 and...

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Risk appetite wanes on markets

The AUD and NZD have been the weakest performers over the past 24 hours. NZD has recovered to just under 0.63 after falling below 0.6250 overnight. Risk appetite appears weaker when viewed from the perspective of bonds, currencies and commodities.  Recession fears rather than inflation concerns have sent global rates on a lower trajectory, with Germany’s 10-year rate down 14bps to 1.63% and the US 10-year rate down 13bps to 3.15%. Monetary policy tightening expectations have been pared back,...

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Tight supply underpins oil price

Global oil prices rose by as much as 1% on Tuesday. Traders attribute the gains to continued tight global supplies and increased summer fuel demand in the US and Europe, notes CommSec. “Supporting prices were predictions from Exxon Mobil Corp Chief Executive Darren Woods that fairly tight oil markets would extend for 3-5 years.” US President Biden has asked the chief executives of six oil companies to a meeting on Thursday to discuss ways to reduce high energy prices. The Brent crude price...

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Tech sector lower on soft day on ASX

22.6.22 Despite lifting by as much as 0.5 per cent in early trade, the ASX 200 finished 0.23 per cent or 15.3 pts lower to 6508.5. This is in part due to futures pointing to a softer start to trade in the United States tonight, says Divak Nigam at CommSec. “The Energy and Utility sectors did most of the heavy lifting today, after posting gains of 1.5 per cent and 2.1 per cent, respectively. “This was offset by a 1.5 per cent fall in the Tech sector. Five of 11 sectors finished in positive...

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Seeka updates on kiwifruit harvest.

Seeka CEO Michael Franks 22.6.22 The annual kiwifruit harvest is now completed, with the total industry Hayward volumes down on the previous year by approximately 17% and down on the current year industry estimate by 10%, according to NZX-listed Seeka Ltd. This follows the SunGold national crop being down on estimate by 10.2%. Seeka’s post-harvest volumes have followed the lower than expected industry volumes, and in addition there was crop damage from high winds in late 2021 in the Opotiki...

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Market report 22.6.22

  The NZ sharemarket showed a lack of confidence today after the week so far has produced a shocker of a consumer confidence report, a government working party with a mission impossible to produce tonnes of wallboard out of thin air, and a severe lesson in hubris for the season leading Auckland Blues.   Not even a strong rebound of 641 points on the Dow Jones to 30,530.25 could inspire equity investors today. The shortest day of the year left the NZX50 short changed by -22.92 points at...

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Fletcher respond to wallboard furore

  The ruckus over the building sector’s acute shortage of wallboard for construction of residential and commercial buildings has intensified this week with the Government stepping in to set up a ‘task force’ and an investor association calling for changes in the Fletcher board. The shortage of plasterboard has hit the building sector hard, with builders unable to obtain timely delivery of the popular Gib-board manufactured by one factory that is owned by the Fletcher Building group. The...

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Risk appetite extends on markets

22.6.22 Newsflow has remained light but the positive start to the week for risk appetite has extended overnight, with strong gains for US equities and global rates pushing higher, says BNZ Markets. “The yen continues to face downward pressure, with USD/JPY breaking above 136 for the first time since 1998,’ notes Jason Wong at BNZ Markets. “The NZD has largely tracked sideways and other currency moves excluding the yen have been small. “As steered by positive equity futures trading, US equities...

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