Market Reports

MARKETWEEK:  An end to the new tasting menu for 2023

// Warren Head The short but jam-packed season of New Zealand half yearly results has ended, summer has started poorly and property values and consumer spending have retrenched. The results board shows a number of ‘own’ goals, ambitions being recalibrated, and some small fry showing some real dash. It all adds up to a taste of what companies are recording as they proceed through the second half of the 2023 financial year. AT the end of it all, a handful of heavyweights will likely walk off the...

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NZ Market Report 2.12.22

  The national sharemarket finished the week on a soft note, easing off by 12.71 points to 11,641.85 on the NZX50 index. Aussie banks led the retreat, the ANZ shares off 54c at $26.36 and Westpac down 51c to $25.22. F&P Healthcare shed 27c to $24.05.  Vulcan Steel and Ryman each drifted down 6c. New listing Blackpearl, a SaaS business started with a listing valuation of $1.25.  The business model is to offer applications that improve the effectiveness of how companies communicate via...

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NZ Market Report 1.12.22

Against the backdrop of a sharp rally on Wall Street, the NZ market closed 102 points higher this evening at 11,654.52 on the NZX50. During the trading day in the US, Federal reserve chairman Jerome Powell said in an address that the fight for inflation isn’t over but added the Fed could start to scale back interest rates – as soon as this month.  Wholesale prices came in below expectations. Powell’s address stunned financial markets and the Dow Jones surged 737.24 points or +2.18% to...

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NZ Market Report 30.11.22

Strong trading highlighted the day for NZX, with the NZX50 index finishing 156.69 points higher at 11,522.94. Overnight, the Dow finished up 3.07 at 33,852.53 in New York. Fletcher Building shares came back 13c to $4.95, as did national retailer Briscoe at $4.85. Summerset lost 10c at $9.35.  Winton Land was down 11c at $2.03, a drop of 5.14%. Leading the gains today was the energy sector, with Meridian Energy up 15.5c at $4.895, a rise of 3.3%.  Mercury NZ climbed 25.5c higher to $5.50, up...

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NZ Market Report 29.11.22

Heavyweight stocks bounced back on NZX today, with Fisher & Paykel Healthcare’s half year results putting $2.10 on its share price at $22.81. Mainfreight jumped 69cat $71.49. However, EBOS dropped a further 31c at $40.19 and Auckland Airport was off 13c at $7.82. Colonial Motors added 20c to $9.80 and Summerset gained 15c at $9.45. Retail issuers had a weaker session after news reports that Black Friday was a bit of a fizzer this year. Oddly, considering a hamburger is a likely alternative...

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NZ Market Report 28.11.22

Heavyweight equities contributed to a 74.25 fall in the NZX50 to 11,308.31 to open the trading week. The half-year report season is down to the late reports and the economic backdrop is of falling consumer confidence and continued rises in official interest rates. Mainfreight shifted 50c down a gear at $70.80, EBOS fell 8c to $40.50, Freightways lost 15c at $9.84 and ANZ was down 24c to $26.60. The entire energy sector shed value today, Mercury falling 23c to $5.32, Manawa Energy off 8c at...

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MARKETWEEK :  Lurches in public policy having an undue influence

//  Warren Head The personal investor makes a lonely figure at present as the market moves further towards 2023, with increasingly dire portents of what the year will bring. The modern market seems as exposed as it’s ever been to the risk of intervention or influence by a range of actors such as central bankers, investment institutions, ideologically driven politicians, ambitious imperialistic dictators and activists. Combined, this lot comprise the biggest threat to market stability since bin...

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NZ Market Report 25.11.22

The market has quickly absorbed the higher OCR and moved ahead on repricing equities.  This resulted in a stronger trading day and the NZX50 gained 60.85 at 11,382.56.  BurgerFuel has reported first half net profit after tax of $552,316 compared to $404,525 for the same period last year an increase of 36.5%. Restaurant Brands jumped 36c to $6.86, a surge of 5.5ZZ%. Retirement village operators firmed today after a soggy week:  Ryman rebounded 45c to $6.85, a rise of 7.03%, while Summerset...

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NZ Market Report 24.11.22

The aggressive increase in the Official Cash Rate in yesterday’s Monetary Policy decision by the Reserve Bank leading to higher swap rates clouded trading on NZX today. A firm NZ dollar added to the equation. The NZX50 dipped two points to 11,321.70 with declines and gains in rough balance. F&P Healthcare fell 18c to $20.72, EBOS 24c, and Summerset had a 19c fall to $8.72. Marsden Maritime dropped 12c to $5.50, Sky Network 9c to $2.24, Vector 10c to $4.10. Rakon reported sold demand in its...

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NZ Market Report 23.11.22

The sharp increase of 75bps in the official cash rate to 4.25% by the reserve Bank today as part of its final MPS for 2022 sent the NZ sharemarket lower. The NZX50 dropped 98.66 points to 11,323.82. There were a handful of notable gains, led by the Aussie banks, ANZ, which rose 19c at $26.95, and Westpac, up 19c to $26.09. Gentrack gained 8c at $1.75as did Freightways at $9.99. Mainfreight added 15c at $71.15. Cooks Coffee were boosted by a small parcel of 1,272 ords at a 22% premium or 7c at...

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NZ Market Report 22.11.22

The NZX sharemarket had a softer session today, falling 19.96 points to 11,420.42.  Overnight, the Dow Jones fell 45.41 to 33,700.28. Gainers today included Mainfreight which rose 95c to $71.00 and Vulcan Steel up 23c to $8.64. F&P Healthcare gained 17c to $20.95 and a2 Milk firmed up 15c at $6.69. Trans-Tasman retailer Hallenstein Glasson gained 13c to $5.68 and PGG Wrightson firmed 8c at $4.23. Ryman Healthcare fell 53c or 7.12% at $6.91 and is now down 43.5% over the last year. Analysts...

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NZ Market Report 21.11.22

The sharemarket began the week calmly and in an upwards trajectory. Major stocks carried the NZX50 59.79 points higher to 11,440.40 on the NZX50.  Mainfreight firmed 35c to $70.05, F&P Healthcare gained 28c to $20.78 and EBOS rose 42c to $41.11 following recent positive analysts’ notes on the business. Vector gained 12c at $4.27, Mercury NZ moved 6c up to $5.72, Skellerup recovered 11c at $5.75 and Spark 6.5c at $5.185.  Heartland Bank was one of the strong performers today, adding 7c to...

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MARKETWEEK:   Jumble of updates shift focus to 2023

  Warren Head // Sports enthusiasts (most Kiwis) will be awake to the new reality that the winners these days are those who move the fastest out of a danger zone and get going on attack. It is not only eye-catching but indicative of the pace of change. Indeed, it seemed this past week that the sports newsflow even exceeds the extent of coverage of the cost of living – helping, as they say, to accentuate the positive. However, the economic news isn’t to be bullied off the park. Last week a...

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NZ Market Report 18.11.22

The NZ sharemarket was led higher today by the leading industrials. Fisher & Paykel Healthcare jumped 52c to $20.50, cracking an important threshold, while EBOS added 19c at $40.69. Mainfreight was ahead 45c at $69.70, energy group Meridian gained 10c to $4.70, Auckland Airport was up 10c at $7.91, Chorus 11c to $8.11, and Fonterra SF 12c to $3.16.  Summerset gained 19c to $9.74. In contrast, after refreshed guidance that left a few uncertainties around economic impacts, Ryman Healthcare...

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ASX market breaks higher

The Aussie sharemarket edged higher to break a three day losing streak as the ASX 200 added 13.5 points or 0.2 per cent to 7135.7. Nine (of 11) sectors finished higher. The previous session’s largest gainers, energy and materials, lost 2.1 per cent and 1.2 per cent respectively to be the only sectors to close in negative territory, says CommSec. The financials sector managed to finish in positive territory despite Westpac Banking (WBC) trading ex-dividend. In economic news, the unemployment...

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Calmer session on NZX

A more settled session on the NZX carried the market 63.07 points higher to 11,294.52 on the NZX50. There were mixed gains and losses, mostly of a lighter nature. Vulcan Steel carded the largest at -32c at $8.36. Summerset slipped 14c to $9.55, Contact Energy drifted 16c lower to $7.39 and Delegat came off by 10c at $10. Mercury moved 12.5c higher at $5.435 and Skellerup rose 15c to $5.60. Mainfreight rose 25c to $69.25 while F&P Healthcare gained a further 64c at $19.98. EBOS moved up 11...

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NZ Market Report 16.11.22

Export stocks had a mixed day on NZX, and energy stocks waned. Sanford gained 7c at $4.27 and Delegat added 10c at $10.10, while a2 Milk gained 121c at $6.59.  AFT Pharma was up 9c to $3.79. Infratil gained 19c to $8.60 and Freightways rose 10c to $10.29.  Summerset jumped 14c to $9.69. KMD Brands’s virtual AGM ex-Aussie uncorked a strong start to the FY23 year, notably by the Kathmandu and Rip Curl brands, and the share price firmed 5c to $1.10. Hallenstein Glasson tracked the move with a 13c...

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NZ market report 15.11.22

The US market has shifted position overnight, losing 211 points at 33,536.76 after several Fed officials cautioned the markets for getting ahead of monetary policy. Concerned that last week’s equity rally had been a bit presumptuous, hey warned that there was still work to do in combatting inflation. The local NZX market was quieter today with some profit-taking occurring. The NZX50 edged 7.17pts higher at 11,239.14.  Gainers and losers were in balance. The gains were modest. F&P...

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NZ market report 14.11.22

  The NZ sharemarket made a soft start to the new week, the NZX50 easing down by 79.79 at 11,231.97 There were few gains of size, the best being a cluster of 6c rises by Turners, T&G Global, Restaurant Brands, and EBOS while Briscoe firmed by 8c at $5.09. Mainfreight led the falls, -88c at $72.52 and F&P Healthcare dropped 52c to $19.43. Vulcan Steel recoiled 19c at $8.80, Synlait softened 15c at $2.980 and Infratil 11c to $8.39.  There were 10c falls for Fletcher at $5.01, Port...

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Wall Street shows some muscle power

12.11.22 // WARREN HEAD After a rather chaotic few weeks for global equity market, there was a scramble back into equities late this week. US investors turned a rather minor move lower in the rate of inflation into a sharemarket surge, a rout for the bond market bears and pounding for the US dollar. The October CPI came in at +0.4% and the annualised rate thus +7.7%. The expected CPI was 8%. The Wall Street barometer, the Dow Jones Industrial Average has reacted strongly with the biggest rally...

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NZ market report 11.11.22

The NZ sharemarket has had a strong closing session heading into the weekend, following the sensational surge on Wall Street overnight. The NZX5o climbed to 11,358 at 12.25pm but eased back during the afternoon, eventually logging the day up 219.83 or +1.98% at 11,311.76. There were just three declines of any note: Synlait Milk at $3.05 and Seeka at $3.655 each shed 9c and Colonial Motors eased 7c to $9.68 on its AGM day. Leading the gainers were the Australian banks, AnZ adding 45c at $27.15...

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NZX market report 10.11.22

  There is nothing quite like a hung election to frighten the horses. The US stock market came off of three-straight days of gains into the US mid-term election and fell 646.89 points, a fall of almost 2%, overnight at 32,513.94 on the Dow Jones industrial average. The mid-terms were supposedly a stepping stone for a Republican ‘red wave’ that would sweep on to the next presidential elections. Not so, in a still inconclusive with control of the US Congress unclear.  Wall Street was...

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Market report 9.11.22

  Markets were at sixes and sevens today. The US mid-term elections for the control of the U.S. House and the US Senate were neck And neck earlier today. The status quo is that the House and Senate are both held by the Democratic Party by small majorities, and, of course, Democrat Joe Biden is in the White House.  On Wall; Street, stocks sailed higher for the second day, the Dow Jones up 333 at 33,160.83. The NZ bourse was still in the dumps today, the NZX50 closing 8.41 points down at...

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Market Report 8.11.22

The US and US markets were at different ends of the market see-saw today. While the US market rallied overnight by 423.78 to close at 32,827, +1.31%, the NZ market was struck by a range of sell orders which took the NZX50 138.45 points or -1.23% at 11,151.89. On the gain side, a2 Milk added 25c at $6.24, up 4%. Investors reacted positively to EROAD’s latest update by gaining 7c to $1.45, up 5.07% and Westpac added 340c at $25.75 However, the heavyweight bench buckled slightly with Mainfreight...

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NZD and AUD recover some losses

8.11.22 Rumours last week of China looking to ease its zero-COVID policy continue to cause some market volatility, says BNZ Markets this morning. “But there hasn’t been much net damage from the weekend news of China trying to quash that rumour, with the NZD and AUD recovering much of the losses seen in early trading on Monday, with the USD broadly weaker overnight,” notes Jason Wong, senior market strategist. Global equities show small gains while global bond rates have pushed higher. “On...

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Market Report 7.11.22

Following a major upswing by American markets at the end of last week, the NZ bourse was in buoyant mood today. The NZX50 did not roar higher like the Dow did on the weekend but made a creditable 50 point gain to 11,290.34. EROAS, the transport tech business, announced a couple of important customer contracts, one renewing the other entirely new and upgraded its guidance. The share price lifted by 15c to $1.38, a gain of 12%.  Mainfreight drove 90c higher at $74.30 and Freightways was up 12c...

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MARKETWEEK A season for tracking trends

FoodChain deal lifts TradeWindow MARKETWEEK: // Warren Head Newsflow is starting to swivel to increased attention on monetary policy, which is a topic at arms-length from share investing but does account for daily swings and roundabouts of equity markets. The searchlight is playing on the big question of the extent to which the US Federal Reserve is going to keep making largescale increases in the US Federal funds rate.  Each time a US jobs report is released it is scrutinised for what...

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Market report 3.11.22

    Sharp change of direction on Wall Street – again troubled by a hawkish tone from the chairman of the Federal Reserve (after the latest increase in the Federal funds rate) – wiped 505.44 off the Dow Jones overnight. The index closed at 32,147.76. As one of the first markets to open for the Pacific day, NZX was sideswiped and finished the day of 98.48 at 11,184.30. There were few gains of any significance. A2 Milk released an advisory that the group’s infant milk formula has been...

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NZ Market Report 2.11.22

    A rumour flashing across Asia in the past day sent stocks soaring in value – but the talk of a shift in Xi Jinping’s Covid Zero policy was unverified. Bloomberg said the chatter underscored just how desperate investors have become for signs that the country’s $6 trillion market rout is ending. In New York, the Dow dropped 79.79 to 32,653.20.  In NZ the NZX50 slipped 33.56 at 11,238.78. Chorus dropped 25c to $7.90 $74, Mainfreight fell 5oc to $74.00, and F&P Healthcare eased...

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NZ Market Report 1.11.22

Equity markets came back moderately today under some start of the month profit-taking. The Dow Jones set the scene with a 128.85 points fall to 32,732.95. The NZX50 drifted 2179 at 11,316.64. Mainfreight shares were reduced by 154c to $74.50, while Port of Tauranga shed 22c at $6.27. Freightways was down `14c at $10.21 and Chorus dropped `16c to $8.15. F&P Healthcare gained a further 58c at $20.16 to consolidate its strengthening position. Manawa rose 23c to $5.50, a rose of 4.4%. Vulcan...

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