Market Announcements
Market Summary
The New Zealand sharemarket rose on Monday, with Synlait Milk’s sale of its Pōkeno factory winning approval from investors. The S&P/NZX 50 Index closed up 0.16% or 20.83 points, rising to 13,132.56 after 38.2 million shares worth $131.6m traded. The S&P/NZX 20 index closed at 7550.73 points, up 0.11%, while the S&P/NZX 10 index ended the day at 12,586.37, rising 0.15%. There were 85 gainers and 47 decliners on the main board.
Monday was a positive day on the market with investors looking forward to potentially another official cash rate cut (OCR) from the Reserve Bank of NZ (RBNZ) next week.
Synlait Milk’s share price rallied following its full-year result, rising 15.71% or 11c to $0.81 after 958,873 shares changed hands on turnover worth $783,828.90. Key to the response was news that the business could soon become debt-free after the sale of its state-of-the-art factory at Pōkeno to Chicago-based Abbott for $307m. The business reduced its debt over the year by 55%, dropping from $551.6m to $250.7m. Synlait also cut its net loss to $39.82m in the July 31 year, down from $182.11m a year earlier. Synlait is the sole supplier of infant formula to a2 Milk, which saw its share price rise 0.42% or 4c to $9.66. The Fonterra Shareholder Fund also got a boost from the Synlait result, lifting 4c to $7.95 per unit.
Elsewhere, Infratil had another positive day with its share price lifting 1.56% or 19c to $12.39. Mainfreight’s share price also rose, up 0.91% or 57c to $62.87 after 80,839 shares traded on turnover worth $5.08m. Likewise, Freightways saw its share price increase, rising 24c to $13.49. Meanwhile, shares in Ebos Group fell late in the day, dropping 40c to $29.60 on turnover worth $5.83m.
Most Asian markets rose on Monday, tracking gains on Wall Street, following US inflation figures that met expectations and soothed concerns about Donald Trump’s latest tariff salvo. However, investors were keeping a wary eye on Washington, where lawmakers have failed to reach a funding compromise to keep the Government running, which observers say could affect the release of key data. All three main indexes in New York ended in the green on Friday, snapping three straight losses following news that the Federal Reserve’s preferred gauge of inflation rose in line with expectations, giving the bank room to cut interest rates again. While the 2.7% reading on the August personal consumption expenditures (PCE) index was up from 2.6% in July and well above the Fed’s 2% target, policymakers are focusing on supporting the labour market after a string of weak jobs readings. Their cut, made earlier this month – the first since December – came as a closely watched guide indicated that two more were in the pipeline before January.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 12 points higher at 8883.
- close [Morningstar with AAP]: Australia's share market has started the week on the right foot, posting its best day in more than three weeks.
The benchmark S&P/ASX200 rose 75.1 points, or 0.85 per cent, to 8,862.8 on Monday, as the broader All Ordinaries gained 69.3 points, or 0.76 per cent, to 9,148.5.
The local bourse's best day since September 4 came as investment funds rebalanced portfolio's into the month and quarter-end, IG Markets analyst Tony Sycamore said.
"Broadly speaking, the ASX 200 has tracked sideways this month, whereas other indices like the Nikkei and US indices have all gone absolutely crazy to a degree," Mr Sycamore told AAP.
"That makes our stock market a prime candidate for rebalancing buying for these big money funds."
Local banks led the charge as financials stocks rallied 1.7 per cent and health care stocks enjoyed a healthy 1.3 per cent rebound from last week's sell-off, as nine of 11 sectors closed higher.
"We've got one more day to go before month-end, and I wouldn't be surprised to see some of those rebalancing flows drift into the market again tomorrow," Mr Sycamore said.
Gold miners returned to form as the precious metal hit a fresh record of $US3,815 ($A5,808) an ounce during the session, pushing Newmont and Evolution each more than four per cent higher, as Northern Star rallied 3.1 per cent to $23.45.
Materials stocks more broadly managed to lift by 0.3 per cent despite large caps BHP (-0.7 per cent), Rio Tinto (-1.6 per cent) and Fortescue (-2.1 per cent) weighing on the segment amid stagnant iron ore prices.
Health care stocks clawed back half the previous week's 2.6 per cent loss as more companies assured investors they were exempt from long-awaited US pharmaceutical tariffs.
Blood plasma giant CSL rose 2.5 per cent to $199 a share, still a roughly 25 per cent discount to its pre-earnings price in mid-August, when it slashed earnings guidance and flagged a major restructure.
Australia's IT sector was the worst performer on Monday, sliding 0.6 per cent as segment giant WiseTech Global sold off after its billionaire founder Richard White cashed out $240 million in stock late on Friday. Mr White remains the company's biggest shareholder.
Energy stocks also faded, shedding 0.4 per cent as coal miners and uranium plays traded lower. Whitehaven was heavy, falling more than three per cent as it continued with its on-market buyback.
Australian defence technology company Droneshield tore through its previous high to outperform the top-200, spiking more than 20 per cent to $4.59, taking its gains for the year above 500 per cent.
The Australian dollar is buying 65.64 US cents, up from 65.36 US cents on Friday at 5pm as FX traders look to Tuesday's Reserve Bank meeting.
With a near-zero chance of an interest rate cut until at least November, analysts are tipping a hawkish tone from the central bank after last week's hotter-than-expected partial inflation print of three per cent in the year to August.
ON THE ASX:
The S&P/ASX200 rose 75.1 points, or 0.85 per cent, to 8,862.8
The broader All Ordinaries gained 69.3 points, or 0.76 per cent, to 9,148.5
The NZX 50 added 2.28 points (0.02%) to 13134.84
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended higher. The DJIA rose 0.1% to 46,316.07, the S&P 500 added 0.3% to 6,661.21 and the Nasdaq climbed 0.5% to 22,591.15.
Among S&P 500 companies, the top three gainers were Robinhood Markets Inc HOOD surging 12.24%, Western Digital Corp WDC jumped 9.27%, and Coinbase Global Inc COIN lifted 6.94%.
The biggest decliners were Williams-Sonoma Inc WSM which dropped 4.65%, Vistra Corp VST fell 4.48%, and Carnival Corp CCL lost 3.98%.
Asia
Chinese shares closed higher. The benchmark Shanghai Composite Index climbed 0.9% to 3,862.53 and the Shenzhen Composite Index gained 1.5% to 2,508.37.
Hong Kong shares ended higher. The benchmark Hang Seng Index lifted 1.9% to 26,622.88.
Japanese shares ended lower. The Nikkei Stock Average slipped 0.7% to 45,043.75.
India shares ended lower. The BSE SENSEX declined 0.1% to 80,364.94.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index lifted 0.2% to 9,299.84. In Europe, shares closed mixed. The Germany's DAX was unchanged at 23,745.06, and the France's CAC 40 climbed 0.1% to 7,880.87
