Market Reports

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...

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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...

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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...

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Market report 9.8.22

A cautious but constructive session on NZX today saw a number of good gains made across a broad spectrum, whilst losses were limited. There were only a handful of falls of any note. There were 10c retreats made by Colonial Motors at $9.20, Freightways at $9.1 and Infratil at $9. Chorus lost 8c at $7.88. Skellerup bounded back after yesterday’s fall and pout on 23c at $5.79. F&P Healthcare jumped 44c to $21.44 While Mainfreight gained 76c at $79 and EBOS 20c at $39.  A2 Milk gained 17c at...

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Market report 8.8.22

There was a good range of share price moves on NZX today with the NZX50 ultimately finishing down 25.66 points at 11,702.81, due to several large declines by heavyweight stocks. EBOS peeled off 30c at $38.80, Mainfreight 26c at $78.24, Ryman Healthcare 28c at $9.26 and Ampol 37c down to $36.63. Colonial Motors decelerated 27c to $9.30 and Skellerup dropped 30c to $5.56. Synlait Milk fell 12c to $3.26 and Spark 8.5c to $5.14. EROAD slowed by 12c at $1.85, Chorus shed 13c at $7.96 and LIC lost...

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MARKETWEEK:  Spare some gold medals for resilience

Listed companies are doing some heavy lifting WARREN HEAD //  6.8.22 There was a gold and silver gleam to the week for both New Zealand national pride at the Commonwealth Games in Birmingham and, if we’re in a sharing mood, also in the business sector. There will be several business awards coming up at which the best of our entrepreneurialism will be celebrated but the top awards this year should really go to those who kept the country’s shelves stocked whilst a global pandemic and political...

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Market Report 4.8.22

  Wall Street had another of those rip-snorting days, racing 416.33 points higher at 32,812.50 after the US service PMI clinched a 56.7% rise for July – a surprise event indeed – where’s the much feared recession!   Corporate results included some strong numbers and House Speaker’s Nancy Pelosi made it back home after her highly controversial visit to Taiwan. On to New Zealand: where the NZX50 has closed off at 11,735.47, up 30.44. Losing ground today were F&P Healthcare down 53c to...

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Market report 3.8.22

  The NZ market broke in the opposite direction from US sharemarjet today, driving 172.57 points higher to 11,705.63. Overnight, the Dow Jones dropped 402.23 points to 32,396.17. The US House of Representatives speaker Nancy Pelosi visited Taiwan, creating tensions between the US and China and weighing generally on investor sentiment, says CommSec. However the tensions provided support for defence companies. The NZ market was driven upwards by some strong movements among leaders. Notably,...

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Market report 2.8.22

Trading was evenly balanced today and the NZX50 managed only a 6.59 points gain at 11,532.46. On Wall Street, the Dow Jones was down 46.73 overnight at 32,798.40.  Investors nudged a2 Milk Company shares 43c or 8.62% higher to $5.42 after an online article in the Australian Financial Review today suggested that a2MC is close to FDA approval to import infant milk formula products into the US. But a2MC cautioned in a note to NZX that “at this stage there is no certainty as to the outcome of the...

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Market report 1 August 2022

  The NZ sharemarket was a very lively place from even before opening bell today with clarification of Pacific Edge’s trading halt, Plexure triumphant with a big win in the US, Infratil clinching a co-investor agreement on Longroad and  Bremworth stating rival carpet-maker Godfrey Hurst had dropped damages claims. The morning call was backdropped by further strong gains on Wall Street on Saturday. The NZX50 gained 33.22 points today at 11,525.87; in Australia the All IOrds rose 39.20pts...

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MARKETWEEK:    ………………… Equity markets spring out of the blocks

// Warren Head Another week and a new lesson for new equity investors – what appears to be bad news for some can be good news for a great many others. Higher interest rates are screwing down demand and in combination with COVID’s impact on productivity, major economies are slowing. Surely that’s bad news?  Doesn’t it mean declining buying power?  Lower growth rates? Exactly! And this week when another 75 basis point increase in the US Federal Reserve’s cash rate was followed only a day later...

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Market Report 29.7.22

  The NZ sharemarket basked in the warmth of a positive tone for Wall Street in today’s session. Overnight the US market continued the brief rally since the Fed Reserve raised the US cash rate by 75 bps and the US GDP growth fell- two events that signalled less likelihood of such sharp rate hikes from here until year-end.  There were only two falls of any note: Restaurant Brands shares continued to fall, -26c to $9.62 since the midweek update, and Third Age shed 19c at $2.21 a fall of...

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Market report 28.7.22

    The latest 75 basis points rise in the US cash rate overnight was seen as decisive and an increment of this size less likely to be again repeated – merriment almost broke out on Wall Street with buyers coming back into the market in pursuit of heavily sold-off stocks. By the close of the call, the Dow Jones was up 1.37% or 436.05 points to 32,197.59. The mood shift swept across the NZ market when it opened and was carried onwards by a very impressive sales and earnings update for...

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Market report 26.7.22

  The market was as soggy as the landscape today, with the NZX50 clocking a 32.16 points fall at 11,166.56. Overnight, Wall Street had a modest rise of 90.75 at 31,990.04 and in Australia the ASX All Ords firmed by 18.80 at 7025.30. EBOS gave back 75c of yesterday’s gain s at $38.25 and F&P Healthcare shed 34c at $21. Vulcan Steel fell 25c to $9.50 as investors absorbed the debate as to which acquisition multiple was more appropriately applied to the purchase of Ullrich Aluminium....

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Market report 25.7.22

  Equity trading on NZX had a soft start to the week with the sharemarket index falling 64.1 at 11,198.68. The fall was largely driven by a 43c drop in F&P Healthcare shares to $2139, flanked by a 20c fall by Ampol to $25.80, Freightways coming off by 19c to $9.95 and Auckland Airport shedding 15c to $7.15. a2 Milk shed 17c at $4.88. Among gainers, the major advances were made by EBOS rising 40c to $38, Summerset gaining 34c to $10.45, Mainfreight up 25c to $70.75 and Delegat up 28c...

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MARKETWEEK: Some metals alchemy from Vulcan Steel

23.7.22 // Warren Head  // The equity market’s recent shift downwards in capitalisation has made it easier for corporate growth to be achieved by way of acquisition and partial integrations – as evidenced by a flurry of transactions. The market itself is much calmer this month than last and that also is conducive to completion of equity capital raises, some associated with commercial deals. The past fortnight has seen two balance sheet restructures in separate spin-offs of mobile telephony...

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Market report 21.7.22

The weather has been foul across most of New Zealand on this day but the equity market continued  to shine brightly.  Following a 47 point higher close by the Dow Jones at 31,874.84 on Wall Street 70.75 points rise by the Dow Jones to 11,249.78, the NZ market added 70.75 points at 11,269.76. South Port’s increased guidance saw 10c added to the company’s share price at $7.67. F&P Healthcare cruised a further 64c higher to $21.64, and  Mainfreight gained 34c at $70.30. EBOS rose 18c to...

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Market report 20.7.22

  The NZX market firmed 36.28 points today to reach 11,199.01 on the NZX50 on minimal newsflow. This was somewhat disappointing after a very strong rally of 754 points on the Dow Jones in America overnight (to 31,827.05). However, market heavyweight Fisher & Paykel Healthcare rose 52c to $21, Restaurant Brands rallied 19c to $10.99 and Briscoe put on 14c at $5.39. Fletcher Building added 12c at $5.25, Auckland Airport was up 11c to $7.43 and Chorus lumped 15.5c to $7.70. Vulcan Steel...

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Market report 19.7.22

  Share prices tugged in both directions today and ultimately the NZX market finished up near enough to dead flat. NZX50 eased by a fractional 0.90 points to 11,162.73. The US market had earlier closed another of those frantic sessions where prices start out well and momentum then dwindles away – today by 215.61 points to 31,072.61 on the Dow Jones. Vulcan Steel was the best improver of the day, up 3.05% at $9.11 for a gain of 27c.  While Sky Network TV cruised 8c higher to $2.39, up...

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Market report 18.7.22

  Don’t miss Monday was the order of the day.  First development of the day was the notice of Vodafone’s $1.7bn spin-off of passive mobile tower assets to institutional investors. Brookfield Asset Management and Infratil (49.95%) cashed up in the market’s second TowerCo selldown, with Infratil reinvesting for an ongoing 20% interest. IFT shares finished the day up 11c at $8.09. But wait, there was more to come. In the form of ANZ Banking Group launching an A$4.9bn bid for the banking...

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Marketweek: Companies showing more flexibility

  16.7.22  ///   Warren Head For several days the New Zealand sharemarket has taken a mildly independent direction while Wall Street has wallowed its way through a series of day losses. The background economic and geopolitical wallpaper has been unchanged.  Most economies are recording higher inflation, soggy growth rates, firm freight rates and disrupted markets. Covid’s variants bringing a maddening choice by Western governments to not re-introduce tougher anti-pandemic mandates...

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Weak close for the NZX

The NZ sharemarket closed lower today with gainers limited to small rises except for a handful of leading stocks. Mainfreight put on 30c at $70.30, Port of Tauranga added 14c at $6.70, Delegat was up 15c at $11.40 and Freightways flew 21c higher at $9.90. Aussie banks were again weaker, Westpac dropping 19c at $21.70 and ANZ down 33c at $23.95. Skellerup shed 17c at $5.05 and F&P Healthcare was shorn of 40c at $20.60. Ryman reversed by 26c to $8.78. Mercury Energy dropped 14.5c at $5.815....

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Market Report 14.7.22

The New Zealand sharemarket has taken yesterday’s increase of the Official Cash rate by the Reserve Bank’s monetary committee in its stride, and today the NZX50 index rose 77.64 to 11,187.97. The major Australian banks listed on NZX were among the leading declines, ANZ shares dropping 67c to $24.28 and Westpac off 46c at $21.89. Ampol shares continue to slip, today by 26c to $26.64. TradeWindow successfully completed a $9m share placement but the set price of 70cps was at a 30.7% discount to...

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Market Report 13.7.22

The equities market showed little concern around the 50bps increase in the official cash rate with the market rolling ahead to a 6.94 points gain at 11,110.33. There were one or two sizeable gains which influenced the index: F&P Healthcare climbing 28c to $21.13 and Summerset up 28c at $10.25. Ryman Healthcare Added 11c at $8.80. Chorus gained 20c to $7.44 as the market mulled over the value of the deal struck by Spark for the sale of 70% of its new communications towers subsidiary. Spark...

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Market rfeport 13.7.22

  A lurching backwards and forwards session on the domestic sharemarket saw calmer conditions by night-fall.  The ebbs and flows saw the NZX50 level off to a -2.75 points decline at 11,103.39. Overnight, the Dow Jones dropped 164.31 at 31,173.84.   Tomorrow’s main focus is on the Monetary Policy Review by the Reserve Bank, with the market expectation for a 50 basis points increase in the Official Cash Rate to 2.50%. Energy shares were flatter and Manawa Energy shed 12c at $6.16. South...

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Bear market rally comes and goes

13.7.22 We're back in risk aversion mode at the start of the week with equities sliding, tech getting crushed and the dollar reigning supreme, comments Craig Erlam, Senior Market Analyst, at OANDA. “While the (US) jobs report on Friday highlighted that the US is faring better than the rest in the race to avoid a recession, the rest of the world is sinking under the weight of a cost-of-living crisis and higher interest rates. Another bear-market rally has come and gone and we now head into...

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Market Report 11.7.22

Do we lay the blame on some dismal weather which is disrupting aviation or a fog of despair which has fallen across the land since the All Blacks’ loss vs Ireland at the weekend? The brighter trading over recent days on the NZX failed to re-emerge from the shed, with the NZX50 falling 63.10 points today to 11,106.14.  Restaurant Brands has continued to retrace ground, by another 22c to $10.78 today. Colonial Motors gave up 20c at $9.45 as did South Port to $7.70, while Port of Tauranga shed...

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MARKETWEEK:  Investors breathe out as economy’s fast run cools

9.7.22 // WARREN HEAD // In a rather momentous week loaded with reversals galore and plenty of awfully dire predictions, there is a thin ray of mid-winter sunshine in rising equity markets. On the global level, faced with a crumbling Cabinet, UK Prime Minister Boris Johnson has quit as Conservative Party leader but lingers in office pending the emergence of his successor, Russia has walked out of the G20, Japan is reeling from the assassination of former premier Shinzo Abe and, on a visit to...

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Market report 8.7.22

The equity markets firmed today as risk sentiment relaxed a little. The market focus tended to be directed more to the currency  markets, where the pound sterling rallied on news that UK PM Boris Johnston will be stepping down. The FTSE100 was mild in its approval, just a 13 points gain at 7202.14. In the US the Dow Jones gained 346.87b to 31,384.55, up 1.12%. The biggest decline today on NZX came from Sky City down 17c at $2.58, a fall of 6%. South Port dropped 18c at $7.90. Delegat climbed...

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Market report 7.7.22

The NZ sharemarket has had a quiet trading session and closed down 28.91 at 11,112.16.  Overnight, the Dow Jones closed 69.86 higher at 31,037.68. Falls were modest. Mainfreight slowed by 20c at $70.30. Contact Energy came back by 13c to $7.30 and Auckland Airport was down 18c at $7.34.  Briscoe Group shed 15c to $5.55 after a strong run this week. South Port NZ was off `11c at $8.08 and Fletcher Building down 7c to $5.06. Port of Tauranga gained by 15c at $6.74 and EROAD moved 24c higher at...

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