MARKETWEEK: Cameo high-flier brightens the new month
// 2.12.23 // Warren Head Hopes for a soft landing after a volatile business year that has been fraught with inflation and political risks are now propelling an upwards flight path into December. The past week’s trading appeared mostly concentrated in a clutch of top ten stocks to the extent that some look to be becoming over-heated. But some cameo performances will be heartening investors. Helping to cheer up investors just three weeks short of Christmas the new government...
NZ Market Report 1.12.23
Christmas month has arrived and there is clearly a more positive vibe running – albeit nothing so exciting as to be dubbed as a rally. Those days may be over for a while, and we may need to be content with simple double digit gains by the NZX Gross Index – which today added 37.51 to 121.367.51. The American market is much more emboldened by the very idea that interest rate hikes may indeed be over even if the cuts take a while to emerge. The US Federal Reserve’s preferred inflation measure,...
NZ Market report 30.11.23
Evident optimism in the equities market at the RBNZ’s decision not to increase the OCR at this week’s MPC meeting saw equity share prices move higher overall; today. The NZX50 finished the trading session up 94.26 at 11,330.10. Overnight, the Dow Jones rose 13.44 to 35,430. Genesis Energy outlined how it plans to use Kupe profits to deliver 95% renewable generation by 2035 under a strategy reset at Investor Day today. The plan would boost 160% renewable energy output to 8,300GWh and...
NZ Market Report 29.11.23
Several heavyweight stocks climbed on the NZ sharemarket today as the Reserve Bank released a no-change decision on the Official Cash Rate (though hedging its opinions on what early New Year might bring and increased resignation to an extended period of current high inter rates). The OCR call coincided with a very busy day on NZX with reports cascading onto the trading call including Fisher & Paykel Healthcare, Gentrack, Ryman Healthcare, and Metro Performance Glass. F&P...
NZX Market Report 28.11.23
EBOS Group moved strongly higher today with as 64c rise to $35.63, F&P Healthcare ahead of its half year results jumped 44c to $22.49. Restaurant Brands rose sharply, up 22c to $3.76, a gain of 6.20%. One of the big improvers of the session was Gentrack Group which markets software solutions for utilities and airports globally, with a 49c gain to $5.65, a rise of 9.50%. GTK has delivered impressive growth in revenue, EBITDA and cash in its FY23 results reported...
Market Report 27.11.23
The opening session of the new week was slow. Investors and the public are still absorbing the array of implications from the coalition government agreement. Burger Fuel was the major mover of the day. The intention to hold a special meeting to discuss a capital return has sparked a sudden desire for a bite of the action. BFW shares improved 4c higher to 30c a gain of 15.38%. The story behind the proposed return is on page 1 of this week’s edition of The Headliner. Bremworth held its...
MARKETWEEK: Equities investors focus on interims
25.11.23 // Warren Head The cometh of the Black Friday Troika failed to launch even a flicker of interest from equity investors but short-dated interest rates continued to slip. The NZX50 Gross Index ended the week at 11,211.22, only 34.25 points higher than a week earlier. Globally, attention fell on the brief day of trading on Wall Street after Thanksgiving, with the Dow...
NZ Market Report 24.11.23
There were thanksgivings all round today as the United States held its annual holiday and New Zealand was finally introduced to the people who will be accountable for the direction of the country for the next 3 years. The NZ troika coalition of National, Act and NZ First is itself a ‘first’ under MMP. What took it so long? The hand on the hand-brake. The policies have finally meshed into a kind of collective mixture of centrist dough with some ingredients removed and some right wing...
NZ Market report 23.11.23
There was a modest firmness About the NZX market today as several lead stocks improved ground. The NZX50 rose 17.72 to 11,187.52. A buoyant tech sector helped lift spirits generally on the US market where the Dow Jones moved up 184.74 to 35,273.03, ahead of the Thanksgiving Day national holiday weekend. Colonial Motors continued to forge ahead, putting on a further 20c to $9.50, while F&P Healthcare gained 8c to $22.20 and Mainfreight rose 53c to $66.13. Restaurant...
NZ Market Report 22.11.23
Deals dropped dictated the state of affairs on the NZX market today, with the NZX50 index easing back by 538 to 11,169.80. Offshore the Dow rallied late in the session to close at 35,088.29 as market traders sought for an excuse to show disappointment at Fed minutes that gave nothing away in terms of future interest rate reduction. A clutch of interim reports emerged today and the market rewarded Turners Auto for its strong interim, TRA shares rising 33c or 7.76% to $4.58. Turners posted a...
NZ Market Report 21.11.23
The NZ sharemarket marked time today mid-way through the mini report season. In the absence of any results reports today the main focus was on EBOS Group’s extended trading halt that began last Thursday after media speculation of interest in an Australian business Greencross Pet Wellness Co. Ryman Healthcare dropped 18c today to trade at $5.52, F&P Healthcare fell 14c ro $22.09 and a2 Milk was down 11c at $4.35. Port of Tauranga came back by 10c at $5.20 and Delegat shed 9c to $7.12....
NZ Market Report 20/11/23
The New Zealand sharemarket made a robust start to the trading week, adding 30.49 points at 11,267.46. However, gainers and decliners were fairly matched throughout the session; with retail stocks looking weaker in the face of a widespread Black Friday margin-shredding mess across retail generally. Hallenstein Glasson shares fell 23c at $5.75, a fall of 3.86%, while Briscoe was down 13c to $4.52 and KMD Brands eased off 2c to 79c. Vulcan Steel dropped a sharp 42c to $7.41, a fall of -5.52%....
MARKETWEEK: Country, economy, markets, stuck on the grid
// Warren Head /// The protracted progress to formation of a coalition government has become annoying to the business and investment community and for much of the public a wry expectation of problems to come. MMP has become as murky as off-site umpiring. While the economy idles, maybe it's time to bring out the safety car? A quick visit to Government House might inject some urgency and sense into things. There is discussion (both in the...
NZ Market Report 17.11.23
The NZ sharemarket drifted further South today, with the NZX50 dropping 53.90 points to 11,176.97. Overnight the Dow Jones also lost ground, falling 45.74 to 34,945.47. Mainfreight added 25c to $65.05 and Vulcan Steel advanced by 24c to $8.08, +3.05%. Colonial Motors moved 14c higher at $9.08, and retail Briscoe Group put on 13c at $4.75. a2 Milk moved a further 15c higher to $4.30, a rise of +3.57%. Restaurant Brands out on 8c at $3.10. Winton Land shares shot 12c higher to $2,40 today – a...
NZ Market Report 16.11.23
The national sharemarket took a twist to the downside today as investors booked some gains. By the close of the session this had taken the NZX50 121.97 points lower at 11,230.87 which seemed an overdone response to some better trading. Overnight the Wall Street market advanced 163.51 n the Doe Jones at 34,991.21, with President Biden in discussions with China’s president Xi outside San Francisco. Gains were mostly modest, the best being Skellerup’s 10c advance to $5.10 and a2 Milk 9c gain at...
NZ Market report 15.11.23
The United States CPI reading has set the tone for equity markets. The USD has subsided and the NZD was in its ascendancy overnight. On US markets the Dow Jones rocketed +1.43% or 489.83 popints higher to reach 34,827.70. On the NZX today, the top 50 index jumped 179.56 to 11,352.84. The top stocks led the assault, EBOS gaining 95c to $38.60, +2.52%, and Mainfreight $3.89 higher to $66.90, a rally of +6.17%. F&P Healthcare continued on its improving run, with a 28c step upwards to...
NZ Market Report 14.11.23
The NZ sharemarket caught up today and posted an 80.25 points advance to 11,173.28. Heavyweight were to the fore: Mainfreight put on 71c at $63.01, F&P Healthcare moved 32c higher at $21.87 and EBOS banked an 111c gain at $37.65 – a rise of over 3%. Energy stocks were firmer, with the exception of Contact Energy (-11c to $7.62) and Genesis. Meridian rose 5c at $5.03, and Mercury NZ gained 18c to $6.09, a gain of 3.05%. Restaurant Brands regained 23c at $3.15 and Freightways improved...
NZ Market Report 13.11.23
The NZ sharemarket got off to a laboured start for the week, with the NZX50 slipping 47.37 at 11,093.03. Chorus was up 9c to $7.57 and T&G Global gained 8c to $1.89, a rise of +4.42%. Napier Port was 14c higher at $2.36 (+6.11%) a day ahead of corporate results. Port of Tauranga added 3c to $5.11. Turners Auto, which will also announce results this week, put on 6c to $4.24. ANZ Bank posted a 14% higher underlying profits but statutory profit was flat-lining for FY23. The tone of the...
MARKETWEEK: Situation stocks are showing hidden value
//// Warren Head // 12.11.23 There’s life in the New Zealand sharemarket even if it’s not as we once knew it. While the politicking around the structure of the some-time-soon-so don’t-despair coalition continues to set new standards in meeting durations. The NZX50 closing mark of 11,140.40 cut the gains for the week to a mere 21.48 points but the good news is that few investors lost more than a handful of cents on their portfolios. Some special situation stocks are showing hidden...
NZ Market Report 10.11.23
The NZX market lost some momentum today as evidenced in an NZX50 close at 11,140.40, -57.28 points lower. Overnight the Wall Street took some profits and this was reflected in a 220.33 points retreat for the Dow Jones to 33,891.94. \In a period of higher interest rates, inflation and dampened consumer sentiment, KMD Brands was pleased with where it landed in FY23 with over $1 billion in sales, chair David Kirk told the AGM today. However, all three of KMD’s brands are cycling a strong sales...
NZ Market report 8.11.23
A bout of profit-taking swept the market today , knocking 72.56 points off the NZX50 to 11,151.30. Overnight the US market traded higher, the Dow Jones up 56.74 to 34,152.60 A soggy dairy auction did not help market sentiment as hopes of a more stable Chinese demand pattern faded. The market may also be registering its concern at reports that the re-appointed Labour Party leader Chris Hipkins had pivoted once again and conceded that all policies (including a capital gains...
NZ Market Report 7.11.23
The New Zealand sharemarket took a modest breather today after yesterday’s share price surge, and came back 37.36 points on the NZX50n at 11,233.86. Australian banks were trimmed of some gains made in yesterday’s winning quinella, with ANZ down 42c to $27.70 and Westpac off 84c at$23.26. Vulcan Steel was volatile, shedding 45c at $7.45. Restaurant Brands ebbed 9c to $3.41, Meridian Energy also 9c lower at $5.30 and a2 Milk down 6c at $4.26. However, like today’s winner of the Melbourne Cup,...
NZ Market Report 6.11.23
The NZ sharemarket was in buoyant form again today, with a 142 point advance to 11,261.22 index the outcome. Westpac delivered a blockbuster FY23 result in a volatile economic cycle. NPAT jumped 28% to $7.19bn for $2.05 EPS. The final dividend was 72c, taking payout to 69% of NPAT. This result delivers a better return on equity, higher earnings per share and increased net profit, said CEO Peter King. “This is built on the back of growth in key markets including deposits, mortgages and...
MARKETWEEK: Upbeat sentiment on Wall Street and Symonds
Auckland Business Chamber , 90 Symonds Street. 4.11.23 // // Warren Head The gold medal for this week – brace yourself – goes to Wall Street for the Eureka moment when it stopped punishing itself over the level of interest rates. The market suddenly looked overshot after months of discounting of share values. This took a catalyst to jolt investor sentiment back to centre. That was provided by the US Federal Reserve’s resolve to sit and see on how much can be achieved in beating down...
NZ Market Report 3.11.23
Another huge day on Wall Street formed the background for a bullish session on the NZX market. , 'In the US, the Dow Jones Industrial Average bounded a further 564.50 higher to 33,839, up 1.70%, after strong results in session from Starbucks and post-session by Apple. The NZX50 index gained 784.48 at 121,118.92. The heavy brigade were off racing with F&P Healthcare gaining 40c to $21.90, EBOS up 18c at $37.00, and Mainfreight moving 90c higher to $61.00. Tourism Holding put on 20c...
NZ Market Report 2.11.23
A resurgent Wall Street in the wake of a no change in the US Federal Funds Rate carried the Dow Jones 221 points higher to 33,274.58 and set up a rising tide in other markets. In the UK the FTSE-100 gained 20.71 at 7342.43 and in Australia the All Ords Index gained 70.40 at 7095.00. The NZX50 leapt103.56 to 10,444.40 carried on the shoulders of heavyweights Mainfreight up 175c at $60.10, F&P Healthcare gaining 40c to $21.50 and EBOS romping 113c upwards to $36.90. Energy stocks...
NZ Market Report 1.11.23
The NZX played follow the leader today in rising 93.23 points on the NZX50 at 10,850.92. Earlier, the NYSE market had another solid day, gaining 123.90 points on the Dow Jones as expectation of a n=zero change in the US federal cash rate grew. In NZ, the mood was assisted by two business confidence surveys coinciding with their reasonably optimistic results. The Auckland Business Chamber showed a solid bump in confidence since the General Election, and the ANZ survey added a NZ-wide...
NZ Market Report 31.10.23
31.10.23 The NZX market broke a nine-day losing run today and turned upwards – not by much, just 16.12 points but a psychological lift. The NZX50 closed at 10,757.69. Hours earlier the Dow Jones rebounded by 511.37 points to record its best day since June, the Dow industrial average at 32,928.96, prompted by a perception there been so much bad news priced in that the market correction was overdone. There is now an expectation that the US Federal Reserve will vote for no...
NZ Market Report 30.10.23
The New Zealand sharemarket had a fairly restrained start to the trading week, following the national gloom over the narrow loss in the Rugby World Cup final. The NZX50 Gross index shed 25.25 points today at 10,741.57. Aussie banks lost more ground, ANZ shares down 43c to $26.87 and Westpac off 13c at $22.52. Chorus lost 16.5c at $7.085, Mainfreight fell 71c to $56.30. PGG Wrightson one of the few rural services stocks on NZX dropped 15c to $3.20 -4.48%. Freightways fell 10c to $7.50....
MARKETPLACE: Cloud of uncertainty is persisting
29.10.23 Warren Head The New Zealand market will open tomorrow in despair around the arcane vagaries of electoral law and rugby rules. Since the election the market has used the unknown outcome of the incoming coalition government as one excuse for hesitancy in equity markets – and now, in the Rugby World Cup final has cast a pall. In one case the issue is an overhang in numbers that will reshape the size of the next Parliament, and in the other the overbearing influence of rugby...
