Market Announcements
Market Summary
The New Zealand sharemarket closed marginally down on Tuesday, driven by declines in Vital Healthcare, Ebos Group and Mainfreight, just a day before the transport company reports its half-year result. The S&P/NZX 50 Index closed down 0.09% or 12.932 points to 13,604.55 after 31.1 million shares worth $116.2 million were traded. The S&P/NZX 20 index was down 0.12%, closing at 7787.09 points, while the S&P/NZX 10 index ended the day at 13,002.18 after falling 0.18%. There were 70 gainers on the main board and 61 decliners.
Mainfreight has reported its half-year results today, with Infratil reporting its half-year result on Thursday, along with Stats NZ data on electronic card spending and international travel for September.
Mainfreight’s share price was down 1.19% or 71c to $58.99 prior to the result, after 38,063 shares changed hands on turnover worth $2.2 million. Elsewhere, Ebos Group’s share price fell 1.19% or 34c to $28.20 on turnover worth $8.8m, while a2 Milk was down 1.27% or 14c to $10.87 on turnover worth $2.9m.
Meanwhile, Vital Healthcare’s share price fell 7.80% or 17c to $2.01 following the news yesterday it had reached a conditional agreement to take back the management rights from Northwest Healthcare Property Trust. The property index was down by just under 1%.
In more positive news, SkyCity’s share price lifted 1.32% or 1c to $0.76 after being granted the renewal of its Queenstown casino venue licence for another 15 years.
Freightways’ shares also lifted, rising 1.78% or 25c to $14.30 on turnover worth $1.4m. US stock markets charged higher as investors cheered prospects that the US Government shutdown could be nearing an end, after lawmakers reached a deal likely to break the record 40-day impasse. The prospect of operations resuming in the world’s biggest economy helped temper lingering worries about extended tech valuations amid talk of an AI bubble. A government reopening could also provide clarity on US inflation and on the soft labour market, which will determine whether the Federal Reserve cuts interest rates again, as is widely expected next month.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 15 points higher at 8841.
- close [Morningstar with AAP]: Australia's share market has stumbled after a snag in Commonwealth Bank's quarterly update sparked a dramatic sell-off that wiped $12 billion from Australia's biggest company.
The benchmark S&P/ASX200 fell 17.1 points on Tuesday, down 0.19 per cent, to 8,818.8, as the broader All Ordinaries lost 11 points, or 0.12 per cent, to 9,098.4.
The bourse began the session higher as the US government lumbered towards a reopening deal, but it was not enough to counter a 6.6 per cent tumble in CBA shares after the bank's quarterly update.
A $2.6 billion unaudited cash profit in the three months to September 30 was not enough to allay concerns over rising operating costs and a dip in the bank's net interest margin.
"We're at the end of the Reserve Bank's interest rate cutting cycle, so banks are going to have to do more to attract buying volume from here," Pepperstone head of research Chris Weston told AAP.
"We're going to see a decline in net interest margins effectively, and competition could increase again, and I think we're at the point now where it's not the case that a rising tide lifts all ships in the sector, so you're likely to see outperformance from different banks."
Investors wiped more than $12 billion from CBA's $185 billion market cap, its worst daily performance since President Donald Trump's tariff polices sent global markets into a tailspin on April 7.
Australia's biggest bank was the top-200's second worst performer behind the Bendigo and Adelaide Bank, which tumbled 8.5 per cent to $11.64, after its post-tax cash earnings slipped 3.2 per cent from the recent quarterly average to $120.7 million.
NAB shares also fell 1.3 per cent, while Westpac edged higher and ANZ notched a record-high close above $38 a share.
Some financial sector outflows found their into raw materials stocks, which surged 1.3 per cent higher on the back of gold producers as investors shifted focus from the US government shutdown towards potential Federal Reserve interest rate cuts.
Northern Star and Newmont each gained more than three per cent as spot gold pushed to three-week highs of $US4,136 ($A6,340) an ounce.
Large cap miners edged either side of break-even as iron ore futures grinded lower over the session, slipping below $US103 a tonne.
Lithium miners continued to find buyers, who sent Liontown and Pilbara Minerals each more than seven per cent higher.
Energy and utilities stocks outperformed the broader market, up 1.3 per cent and 1.7 per cent, respectively, despite a slip in oil prices as oversupply concerns outweighed progress on the US government deal.
Santos shares jumped 2.5 per cent to $6.58 as Woodside gained 1.6 per cent, while coal producers edged lower and uranium plays were mixed.
Real estate stocks gained 1.2 per cent for the session in a broad segment rally, clawing back some losses after tumbling more than six per cent since late October.
Poker machine maker Lights & Wonder was the top 200's best performer, rocketing 11 per cent higher and continuing to rally since its solid quarterly update last week.
The tech sector shrugged off a strong lead from Wall Street, slipping after tracking app Life360 plunged more than five per cent despite an upbeat quarterly update as it flagged a $US120 million ($A183.8 million) takeover of advertising tech company Nativo.
The Australian dollar is buying 65.18 US cents, down slightly from 65.27 US cents on Monday at 5pm.
ON THE ASX:
The S&P/ASX200 lost 17.1 points, or 0.19 per cent, to 8,818.8
The broader All Ordinaries fell 11 points, or 0.12 per cent, to 9,098.4
The NZX 50 Lost -32.71 points (-0.24%) to 13571.84
Companies Holding Annual General Meeting (ASX 300):
Beach Energy Limited
Flight Centre Travel Group Limited
Humm Group Limited
Mount Gibson Iron Limited
Companies commencing Ex-Dividend Trading Today (ASX 300):
ResMed Inc.
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended mixed. The DJIA gained 1.2% to 47,927.96, the S&P 500 lifted 0.2% to 6,846.61 and the Nasdaq dropped 0.3% to 23,468.30.
Among S&P 500 companies, the top three gainers were Viatris Inc VTRS surging 10.13%, Paramount Skydance Corp PSKY jumped 9.77%, and Moderna Inc MRNA lifted 6.74%.
The biggest decliners were AppLovin Corp APP which dropped 8.66%, Vistra Corp VST fell 4.84%, and Micron Technology Inc MU lost 4.81%.
Asia
Chinese shares closed lower. The benchmark Shanghai Composite Index dropped 0.4% to 4,002.76 and the Shenzhen Composite Index declined 0.5% to 2,517.57.
Hong Kong shares ended higher. The benchmark Hang Seng Index rose 0.2% to 26,696.41.
Japanese shares ended lower. The Nikkei Stock Average declined 0.1% to 50,842.93.
India shares ended higher. The BSE SENSEX added 0.4% to 83,871.32.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index gained 1.1% to 9,899.60. In Europe, shares closed mixed. The Germany's DAX rose 0.5% to 24,088.06, and the France's CAC 40 was unchanged at 8,156.23
