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...
NZ Market Report 1.6.23
The NZ sharemarket improved sharply today, eventually closing 103.12 points higher at 11,916.13 on the NZX50. This was despite some falls by market leaders, ANZ Bank shedding 36c at $24.70 and EBOS down 23c to $41.85. Gentrack surrendered 22c of recent gains and closed at $4.10 (-5.09%). PGG Wrightson at $4.15 and AFT Pharma at $3.75 each lost 9c, while Tourism Holdings fell 8c at $3.75. The Warehouse incurred some profit-taking and its share price weakened by 6c at $1.69. Energy stocks...
NZ Market Report 31.5.23
On a relatively quieter news flow day, the NZ sharemarket slipped a further 65.70 points at 11,813.01. Falls were headed by a 107c drop by F&P Healthcare shares to $23.25 as the market seeks to find a platform to accommodate the normalisation of post-pandemic peak activity. Chorus fell 15cto $8.18 as the market struggles with a clear understanding of what the future holds under the restructure flagged last week. Meridian Energy dropped 13.5c to $5.31. Spark lost 9c at $.16 and Turners...
NZ Market Report 30.5.23
The national sharemarket lost ground today, with little direction from a lengthy list of small and micro caps. The NZX50 drifted 56.94 points lower to 11,878.7, largely uninspired by March year results. Mainfreight moved 150c higher to $70.00, but EBOS dropped 9cc to $41.55 and F&P Healthcare was down 11c at 424.23. Mercury lost 11c at $6.22, Fletcher Building -13c to $5.05, Vulcan Steel; 9c to $8.22 and THL also down 9c at $3.79. South Port fell 40c on a small parcel, -5.06% - to...
June 1 Headliner online
The 1 June 2023 issue of The Headliner has been posted online and can be accessed by subscribers via paywall password. This edition includes coverage of: Kingfish performance Fisher & Paykel Healthcare – demand normalising – where now? Gentrack back in black Ryman Healthcare- new strategy Mainfreight - off peak but moving on Sanford – fishes up a restructure Napier Port – the damn cyclone Rakon – just look at that CAGR Qantas – to spring a ramp-up Monetary policy – upside risks Boardroom...
NZ Market Report 29.5.23
The NZ shzremarket opened the trading week with a flourish as several small caps reported earnings for the Marc year. The NZX50 closed up 105.62 at 11,935.65, led higher by a 50c rise for Mainfreight at $68.50, 11c gain by Ryman Healthcare, 49c gain for ANZ Bank at $25.59 and 7c rise by Auckland Airport to $8.81. Infratil marched 11.5c higher to $9.99. Energy stocks formed, Manawa by 8c to $5.04 and Meridian by 9c to $5.44. Chorus gained 13c to $8.36 after last week announcing a new...
MARKETWEEK : Earnings results rolling off the pandemic peak
Warren Head //.27.5.23 // The market overall is beginning to adjust to some critical changes showing up in recent annual results by NZX companies: earnings are normalising (back to the future) after the blow-outs of the peak pandemic years and margins are key. The past week saw a further cluster of March 31 earnings reports land on the market and they have included some of our major listed businesses. The main takeaways are that cash flow is relatively strong and the focus is on gross...
NZ Market Report 26.5.23
The national sharemarket closed on a negative note as the March crop of annual results moved through mid-way with Fisher & Paykel Healthcare reporting it was past the peak pandemic years. The result provided evidence of a return to normalised business activity in the 2nd half. FHP’s operating revenue for FY23 was $1.58 billion, down 6% or 9% in constant currency from the 2022 financial year. Net profit was $250.3m, a 34% decline or a 39% decline in constant currency. FPH s share...
NZ Market Report 25.5.23
There was a wide variety of movements on the NZX markets today. Notable were the price gains made by some companies that reported March results a week or so ago and are now steadying. Investore added 5c to $1.46, Gentrack 6c to $4.21 while Seeka gained 11c to $2.79 and a2 Milk out on 7c to $5.80. Fletcher Building rose 7c to $9.88 and EBOS 29c to $43.18. The heavyweight Fisher & Paykel Healthcare righted today after days of a sell-off, to post a 31c gain at $25.65. The company reports...
NZ Market Report 24.5.23
The NZ sharemarket jumped a 100 points between 2pm and closure today, in spot reaction to the Official Cash Rate not rising more than 25 basis points and hints of 5.50% being a possible peak. The NZX50 Gross index closed the day at 11,971.83, up 27.93 overall. Overnight, the Dow Jones fell 231 points to 33,055.51 as the debt ceiling negotiations drag on in the US Congress. Vulcan Steel gained 16c to $8.17. The best gain of the day came from Summerset recovering 28c to $9.03. But F&P...
NZ Market Report 23.5.23
One day out from the May meeting of the RBNZ’s rate setting decision, the equities market was in a fairly sullen mood, sensing the inevitability of at least a 25 basis points increase in the Official Cash Rate, even maybe 50pts, as the central bank takes its first opportunity to present its view on whether the 2023 Budget is seen as a catalyst for another rates hike. The OCR decision and the accompanying Monetary Policy Statement will be released at 2pm – about the time Finance Minister...
NZ Market Report 22.5.23
Day 1 of what may be a difficult week for equities with the Reserve Bank widely expected to maintain a hawkish stance toward sticky inflation in the Monetary Policy Statement on Wednesday- at last a 25 basis point rise in the Official Cash Rate, and maybe a 59pts rise! Offsetting some of the uncertainty today were some exceptionally well received corporate results. The NZX50 index fell 106.74 to 11,993.00. AFT Pharmaceutical is travelling well enough with operating revenue up 20%...
NZ close to end of tightening – Harbour Asset
22.5.23 After an aggressive RBNZ tightening cycle, the New Zealand economy is likely to enter recession later this year, says Wellington-based Harbour Asset Management. Inflation, however, is unlikely to quickly return to the RBNZ’s 1-3% target range and involves three broad steps – supply chain normalisation, lower housing costs and a drop in wage growth. Only the first step is complete, notes Harbour. “We expect the RBNZ to increasingly recognise the impact of its rapid rate hikes to highly...
MARKETWEEK: Annual results brighten flat stock market
Ryman Healthcare produced a new strategy this week // Warren Head // 20.5.23 Budget week coincided with a period of relative torpor on the New Zealand sharemarket as investors awaited Finance Minister Robertson’s 6th Budget to see whether it would carry any taxation implications or alter the monetary track. The Budget was a neat piece of footwork in endeavouring to balance a continuation of the Labour coalition’s families first social policies with the immense costs of...
NZ Market Report 19.5.23
The NZ sharemarket completed a rather slow-moving week with a flourish tonight, pouring on the pace after the release from uncertainty over what the 2023 Budget might bring. The business sector played second fiddle to social policy in this budget (after a few years of being supported through the pandemic) apart from a lift for infrastructure expenditure and the $100 million green hydrogen rebate, Freight and logistics companies had a strong day, Mainfreight moving $2.81 higher to...
NZ Market Report 18.5.23
For a no frills Budget the 2023 edition still managed to roll out a billion dollars of free early childcare, remove the costs of catching a bus to school and boost borrowing by another $30bn to fund infrastructure expenditure. The likelihood of the latter is that the mild risk of an inflationary effect will spread out over a few years and interest rates will remain high for longer. Sort of a no change situation. The sharemarket didn’t go into a spin, nor was it over-run by paparazzi. It just...
And then there was the Aussie Budget. . .
18.5.23 The Australian Government produced a Federal Budget that apart from alleviating cost-of-living pressures for low-income Australians and welfare recipients also delivered a surprise surplus. “Aged care workers (received) a long-awaited pay rise, while the government is powering the energy transition with an array of decarbonisation incentives, including a scheme to kickstart large-scale hydrogen production in Australia,” says Westpac Australia in a note today. Westpac Institutional Bank...
NZX Market Report 17.5.23
It was another meandering session for the NZX market today, as the trudge to tomorrow’s ‘no frills’ Budget continued. The government’s options appear limited to a reshuffle of priorities. The NZX50 index drifted upwards 5.79 points at 11,951.66. In Australia the ASX All Ords dropped 34.90 to 7389.30. In the US, the Dow Jones fell 336.46 at 33,012.14 on another uncertain day with a Federal debt ceiling unresolved in the US Congress. The day’s surprise was a 67c push to $2.97 by Serko,...
NZ Market Report 16.5.23
For the second day, the NZ market failed to make double digit headway on an uncertain pre-Budget session. The scene was set from 5am when Westpac’s latest Economic Review made a sober read over the morning coffee. New Zealand’s economy has lost steam and economic growth is set to slow over the year ahead but, even so, further interest rate increases will likely be required, according to Westpac. “The wind has come out of the New Zealand economy’s sails.” A migration wave is under way that the...
NZ Market Report 15.5.23
The NZX opening session of the week was a fairly quiet one, which is not surprising with the NZ Government Budget just days away. The March balance date earnings season is also about to get underway. The NZX50 closed this evening down 1.24 points at 11,937.60. Sharebrokers Forsyth Barr noted that a report season can function as a catalyst to close the gap between investor expectations and reality. In the upcoming NZ reporting season they see the biggest potential for index-moving share price...
MARKETWEEK: Market volatility has bottomed out
'Red Sheds' the epitome of 'no frills' // 13.5.23 WARREN HEAD ///// We’re tempted to describe the national equities market as looking ‘balanced’ with decliners and improvers levelled up with no signs of the volatility that occurred earlier this year. Others may say it is in a state of suspended animation waiting for a fairly critical Budget year Budget from Labour Finance Minister Grant Robertson....
NZ Market Report 11.5.23
American inflation data improved overnight but still at a high level, which left the equities market as discouraged. The Dow Jones index of 30 blue chip US business majors dropped 73.94 to 33,487.87. In New Zealand the equities market had a very dreary day, seemingly unimpressed with the government’s promise of $4bn in budget savings spread over several years. It was also another difficult day for Auckland City, stuck with a ballooning budgetary deficit. Auckland Chamber CEO Simon Bridges...
Market report 10.5.23
A heavy rain event in the Auckland region that disrupted business activity did not dampen spirits on the NZ sharemarket. The NZX50 rallied 97.69 points to 11,987.30. Leading companies made most of the running. EBOS rose 79c to $45.20 and restaurant Brands gained 23c to $7.63. Port of Tauranga was ahead 20c at $6.55 and Fletcher recovered a further 13c to $4.75. Infratil gained 16c to $9.44. Energy stocks gained ground: Meridian up 6.5c to $5.15 and Mercury up 10.5c to $6.595. ANZ Bank...
THL price fall on weaker session
The quiet opening of the market yesterday turned into a negative trend today, with the NZX50 softening by 52.58 points to 11,859.61. Overnight the Dow Jones dropped 55.69 to 33,618.69. Vehicle travel business Tourism Holdings fell 40c or 9.41% at $3.85 after its Investor Day briefing included am ambivalent trading update. THL said, the travel and tourism industry has remained resilient and is experiencing strong growth. However, THL also noted ‘Vehicle sales demand has commenced softening in...
NZ Market Report 8.5.23
The strong gains on the NYSE at the weekend helped raise risk appetite by investors and the tone carried across to the NZX opening today. A stronger final hour lifted the NZX50 by 53.48 at the close at 11.942.49 on the NZX50 index. Mainfreight sank a dollar at $70, Briscoe shed 10cc at $4.40 and Mercury lost 6.5c at $6.38. Westpac led the gainers with a 64c move to $23.44, while EBOS added 58c at $44.77. Restaurant Brands firmed by 13c to $7.42 and Freightways gained 12c to $9.40....
MARKETWEEK: Start date for FTA a ‘crowning moment’
6.5.23 // Warren Head // American markets went for another spin on the roller-coaster this week but after a spell of blinking into the headlights the Kiwi equity market righted itself into a cautious upturn this week. Some strong results from listed companies helped generate some impetus. (For now, the barely disguised attempt by David Parker to stimulate support for his re-distributive beliefs, was towed off to the storage yard). The NZX-50 index finished at 11,889.01 on Friday,...
NZ Market Report 5.5.23
The NZX market had a rather torrid close to the week after keeping US-engendered gloom at bay in midweek. The NZX50 closed down 79.54 at 11,889.01. Leaders were marched backwards and into touch, F&P Healthcare off 27c at $27.00 is reacting to a negative analyst’s assessment (Forsyth Barr has an underperform rating on the stock). . Mainfreight went 110c into reverse at $71.00, Vulcan Steel again looked wobbly at $8.25, down 21c, and Skellerup list 13c at $4.35. Summerset shed 18c at...
NZ Market Report 4.5.23
Market leaders flipped higher today as the NZ sharemarket ignored another drop on Wall Street and took a more optimistic direction. New York trading was reacting to the latest 25 basis points rise in the US federal funds rate and a hawkish tone to the FOMC statement, along with comments from Fed chair Jerome Powell that rein forced a determination to cut inflation down to size. The Dow Jones index slid a further 270.29 points to 33,414.24. In contrast, the NZX had a bumper day, bouncing 60.56...
NZ Market Report 3.5.23
The sharemarket took a sharp tumble today after a poor night on Wall Street. The Down Jones plunged 367 points to 33,684 after fears of the First Republic collapse and restructure rippled across US regional banks. The NZX50 slid 129.82 or -1.08% at 11,907.99. With merely 18 stocks gaining in value on today’s trading session. NZ’s trading banks are in strong shape thanks to firm regulation by NZ and Australian authorities. The general news has however hardly had any real turning points...
