Market Announcements
Market Summary
A takeover notice has sent KFC-owner Restaurant Brands’ stock price flying on a newsy day in the New Zealand equity market yesterday. The benchmark S&P/NZX 50 Index gained 1.22% to 13,292.36 points on Tuesday, with 61.6 million shares worth over $255.9m changing hands. There were 95 gainers and 44 decliners. The day kicked off with Restaurant Brands’ largest shareholder, Finaccess, filing a takeover notice to acquire the company at $5.05 per share. Finaccess said it was “the final and best price it is willing to pay” and that it will not be increased. Shares closed up 65.20% at $4.89.
Elsewhere on the bourse, Scales Corporation rose 6.36% to $5.69 after it said it had agreed to increase its shareholding in its Australian joint ventures. Synlait shares were down 2.47% to 79 cents a day after the milk manufacturer announced it would offload its North Island assets to Abbott Laboratories for approximately $307m.
The Commerce Commission issued a draft determination proposing to authorise energy companies Genesis Energy, Contact Energy, Meridian Energy and Mercury NZ in a series of agreements referred to as the Strategic Energy Reserve Huntly Firming Option (HFO). The HFO deal would see them share the costs and risks of maintaining Huntly’s Rankine 2 unit and gain rights to its generation at prices linked to its coal-based costs. The determination comes ahead of the Cabinet’s package of energy market reforms, which is expected to be announced on Wednesday. Mercury rose 1.67% to $6.68 and Genesis lifted 0.86% to $2.35. Travelling in the other direction was Meridian, which dipped 1.24% to $5.57.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 25 points lower at 8825.
- close [Morningstar with AAP]: Australia's share market has handed back early gains after the Reserve Bank hinted investors might have to wait longer for the next reduction in borrowing costs.
The benchmark S&P/ASX200 finished the day down 14 points, or 0.16 per cent, to 8,848.8, on Tuesday as the broader All Ordinaries slipped 12.6 points, or 0.14 per cent, to 9,135.9.
After a broadly positive session, the bourse slipped lower as the Reserve Bank held the cash interest rate at 3.6 per cent as expected, but its concerns about September quarter inflation trimmed hopes of a November rate cut.
"Now we're sort of not looking at a cut fully baked in until maybe after the first quarter of next year," Capital.com market analyst Kyle Rodda told AAP.
"We'll see how that goes, as obviously the quarterly consumer price index data is what they look at for an accurate read on what's really going on with prices, but nevertheless it's a cautious tone and it waters down the hopes for rate cuts."
Energy stocks led nine of 11 sectors into the red with a 1.6 per cent drop, while raw materials stocks counterbalanced broader weakness as record gold prices helped the segment notch a one per cent lift.
The precious metal is trading at $US3,864 an ounce after spiking above $US3,870 in the afternoon as concerns about a US government shutdown draw investors to the safe haven.
Supply concerns continued to support copper miners such as Capstone Copper (up 4.3 per cent) and Sandfire Resources, while lifting BHP (1.5 per cent) and Rio Tinto (0.6 per cent) despite iron futures slipping below $US103 a tonne.
The drop in energy stocks came as oil prices tumbled overnight after OPEC+ flagged production increases in November against a backdrop of a crude supply glut.
Woodside slipped 1.7 per cent to $23.03 and Santos tumbled 2.5 per cent to $6.73.
The heavyweight financials sector lost 0.5 per cent as three of the big four banks traded lower and Westpac eked a modest gain of less than 0.1 per cent.
Commonwealth Bank was heaviest, falling 0.9 per cent to $166.90, a 15 per cent discount to June's $192 record high.
Meanwhile, defence technology stock Droneshield outperformed the top-200 for a second straight session, surging 5.9 per cent higher to a fresh peak of $4.66.
Outside of the ASX 200, Seven West shares leapt more than seven per cent to 15 cents after it announced billionaire Kerry Stokes would step down as chair if a merger with Southern Cross Media was successful.
Telecommunications had a rough day, dropping a notable 0.9 per cent as Telstra shares tumbled 1.4 per cent to $4.82.
The Australian dollar is buying 65.99 US cents, up from 65.64 US cents on Monday at 5pm, the Aussie buoyed by the uplifted forecast for local interest rates.
Looking ahead, all eyes will be on US congress overnight as a potential government shutdown looms if deadlocked Republicans and Democrats can't strike a deal on short-term government funding.
A shutdown could potentially deprive investors of key economic data to assess the outlook for world's largest economy.
ON THE ASX:
The S&P/ASX200 fell 14 points, or 0.16 per cent, to 8,848.8
The broader All Ordinaries lost 12.6 points, or 0.14 per cent, to 9,135.9
The NZX 50 added 2.69 points (0.02%) to 13295.05
Companies commencing Ex-Dividend Trading Today (ASX 300):
Nick Scali Limited
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended higher. The DJIA added 0.2% to 46,397.89, the S&P 500 gained 0.4% to 6,688.46 and the Nasdaq lifted 0.3% to 22,660.01.
Among S&P 500 companies, the top three gainers were Pfizer Inc PFE surging 6.83%, Merck & Co Inc MRK jumped 6.81%, and Danaher Corp DHR lifted 6.57%.
The biggest decliners were Albemarle Corp ALB which dropped 6.68%, MGM Resorts International MGM fell 5.12%, and Capital One Financial Corp COF lost 4.93%.
Asia
Chinese shares closed higher. The benchmark Shanghai Composite Index climbed 0.5% to 3,882.78 and the Shenzhen Composite Index rose 0.4% to 2,519.42.
Hong Kong shares ended higher. The benchmark Hang Seng Index added 0.9% to 26,855.56.
Japanese shares ended lower. The Nikkei Stock Average declined 0.2% to 44,932.63.
India shares ended lower. The BSE SENSEX fell 0.1% to 80,267.62.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index lifted 0.5% to 9,350.43. In Europe, shares closed higher. The Germany's DAX added 0.6% to 23,880.72, and the France's CAC 40 lifted 0.2% to 7,895.94
