Market Announcements
Market Summary
The New Zealand sharemarket fell marginally on Monday, the benchmark S&P/NZX 50 fell 0.36% to 12,684.00 points to start the week, with 33.1 million shares worth $117m changing hands.
Mainfreight rose 0.96% to $60.07 on volumes worth more than $5m in volume traded. Mainfreight shares fell 10% last week after the business told attendees of its annual shareholders’ meeting that it had a "slow and disappointing" start to the financial year.
In an update for the three months to July 27, Briscoe Group said second-quarter sales rose 2.07% to $192.9m compared with the same period last year. Managing director Rod Duke said a bounce in the homeware segment, up 3.97% in the quarter, followed a weak start to the financial year. Shares we unchanged at $6.01.
Rakon shares dipped 2.47% to 79 cents after former executive and shareholder Brent Robinson said he would not support Mark Bregman, Lisbeth Jacobs and Jon Raby to join the board at its scheduled meeting later this month. Rakon said its 12.19% shareholder, Taiwanese company Siward Crystal Technology Co, and its board appointee, Jung Meng Tseng, were also against the independent board appointments, which included Bregman becoming chair.
Tourism Holdings (THL) shares rose 0.49% to $2.06 after it told the market that an unsolicited indication of interest from a consortium to buy it for $2.30 a share was an “opportunistic and undervalued offer”. “Based on careful consideration and external analysis, the board has come to the view that the value of the company is well north of $3.00 per share,” it said. In June, it received an indication of interest from a consortium comprising BGH Capital and the family interests of Luke and Karl Trouchet, directors of the company.
Prospective SmartPay buyer Shift4 Payments obtained the necessary consent under the Overseas Investment Act for its proposed acquisition of SmartPay. The scheme of arrangement, under which Shift4 would acquire all the shares in Smartpay for $1.20 per share in cash, is now one step closer to completion. SmartPay shares gained 1.79% to finish the day at $1.135.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 51 points higher at 8703.
- close [Morningstar with AAP]: Upticks in iron ore and gold prices have helped the Australian share market steady itself after a shaky start to the week.
The S&P/ASX200 overcame an early rout to close almost flat, up 1.7 points, or 0.02 per cent, to 8,663.7, as the broader All Ordinaries rose 4.9 points, or 0.05 per cent, to 8,922.
"If you try and put the flows together today, it's been a continuation of the selling of bank stocks, potentially due to valuation reasons, and the flow of the big mining stocks has resumed again after taking a bit of a hit last week," IG Markets analyst Tony Sycamore told AAP.
"You've also got the expectation the Reserve Bank cuts interest rates here next week, so that provides a little bit of a cushion as well."
Six of 11 local sectors finished the day lower, with financials and energy stocks weighing on the bourse as they each lost 0.6 per cent.
All big four banks lost ground, led by a 1.6 per cent slip in ANZ's value, while CBA was the best performer with a 0.1 per cent fall to $174.93.
Shares in insurance giant QBE dropped two per cent to $22.45, despite investment group UBS predicting strong premium growth and a calmer earnings season in August compared to February.
The materials sector helped balance financial sector losses, pushing 1.2 per cent higher as stronger gold and iron ore prices supported major miners.
BHP and Fortescue gained 0.9 per cent and 1.4 per cent respectively, while goldminers Northern Star (up 5.6 per cent) and Vault Minerals (up 7.4 per cent) were the top-200's best performers.
Consumer staples stocks also had a positive day, up 1.2 per cent with help from Dan Murphy's owner Endeavour Group, which jumped more than three per cent after executive chair Ari Mervis stepped down.
Coles and Woolworths also notched gains of more than 1.3 per cent to $20.89 and $31.68 respectively.
The lull for energy stocks tracked with a slip in oil prices, pushing Woodside 1.3 per cent lower to $26.19 a share, but Santos capped its downside at 0.3 per cent after announcing a potential domestic gas supply deal with French gas giant ENGIE.
IT stocks fell 0.4 per cent, as sector giant WiseTech faded 1.7 per cent after completing its $US2.1 billion ($3.25 billion) acquisition of Texas-headquartered e2Open.
US-based tech firm Block was the top-200's worst performer, falling more than four per cent ahead of an earnings update later in the week.
The Australian dollar gained ground against the greenback to buy 64.81 US cents and was trading higher against most major currencies on Monday.
Looking ahead, earnings season is picking up pace with REA Group, AMP, News Corp, QBE, and Pinnacle Investment Management set to report.
ON THE ASX:
The benchmark S&P/ASX200 index on Monday rose 1.7 points, or 0.02 per cent, to 8,663
The broader All Ordinaries gained 4.9 points, or 0.05 per cent, to 8,922
The NZX 50 added 89.79 points (0.70%) to 12773.83
Companies Holding Annual General Meeting (ASX 300):
Catapult Group International Limited
Companies commencing Ex-Dividend Trading Today (ASX 300):
Qualitas Real Estate Income Fund
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended higher. The DJIA gained 1.3% to 44,173.64, the S&P 500 lifted 1.5% to 6,329.94 and the Nasdaq rose 2% to 21,053.58.
Among S&P 500 companies, the top three gainers were IDEXX Laboratories Inc IDXX surging 27.49%, Williams-Sonoma Inc WSM jumped 6.85%, and PG&E Corp PCG lifted 6.52%.
The biggest decliners were ON Semiconductor Corp ON which dropped 15.58%, Paramount Global PARA fell 5.42%, and LyondellBasell Industries NV LYB lost 4.72%.
Asia
Chinese shares closed higher. The benchmark Shanghai Composite Index gained 0.7% to 3,583.31 and the Shenzhen Composite Index lifted 0.8% to 2,192.56.
Hong Kong shares ended higher. The benchmark Hang Seng Index gained 0.9% to 24,733.45.
Japanese shares ended lower. The Nikkei Stock Average fell 1.2% to 40,290.70.
India shares ended higher. The BSE SENSEX gained 0.5% to 81,018.72.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index lifted 0.7% to 9,128.30. In Europe, shares closed higher. The Germany's DAX climbed 1.4% to 23,757.69, and the France's CAC 40 added 1.1% to 7,632.01
