Market Announcements
Market Summary
The New Zealand sharemarket made a small gain yesterday following the holiday weekend but it largely ignored another record day on Wall Street. The S&P/NZX 50 Index fell in the morning to 13,333.57 but recovered in the afternoon to close at 13,402.66, up 11.06 points or 0.08%. The index has now increased nearly 3% for the year to date. There were 79 gainers and 67 decliners on strong volumes of 45.58 million share transactions worth $179.13m.
In the United States, the S&P 500 Index went above 6800 points for the first time after gaining 1.23% to 6875.16, its 34th record close this year. The Dow Jones Industrial Average was up 0.71% to 47,544.59 points, and Nasdaq Composite rose 1.86% to 23,637.46 on the back of the big tech stocks. Investors this week are eagerly awaiting an interest rate cut by the Federal Reserve; latest quarterly earnings from Microsoft, Alphabet (Google), Meta (Facebook), Apple, Amazon; and a potential trade deal from a long-awaited meeting between the US and Chinese presidents Donald Trump and Xi Jinping.
All the action was across the Tasman where the S&P/ASX 200 Index had fallen 0.39% to 9020.7 points at 6pm NZ time. Global pharmaceutical company CSL was down 15% to A$179.62 (NZ$203.87), a six-year low, after downgrading its revenue and profit growth forecasts amid falling US vaccination rates. CSL shares are down more than 36% in the past 12 months, having traded above $300 in October last year. Heavyweight WiseTech Global had declined 15.4% to A$71.90 ($81.61) after its Sydney head office was raided by Australian Federal Police and Australian Securities and Investments Commission. The investigation centres on alleged insider trading by founder Richard White and three employees, although no charges have been laid and the company insisted it is co-operating fully.
Back home, Gentrack increased 39c or 4.37% to $9.32; a2 Milk gained 13c to $10.50; Turners Automotive added 14c or 1.93% to $7.40; SkyCity Entertainment Group was up 1.5c or 2.1% to 73c; and Livestock Improvement Corp rose 9c or 9.18% to $1.07. Market leader Fisher & Paykel Healthcare looked like going under $35 after reaching an intraday low of $35.12 but made a strong turnaround to close at $35.95, up 5c on trade worth $27.29m.
The dual-listed banking groups had a strong day, with ANZ increasing $1.24 or 3% to $42.55, and Westpac adding $1.19 or 2.72% to $45. Fletcher Building decreased 7c or 2.17% to $3.15; Mainfreight declined 81c to a six-month low of $59.29; Summerset Group eased 16c to $11.74; and Foley Wines down 4c or 6.35% to 59c. Being AI fell 2.3c or 16.34% to 11.8c after reaching 20c on October 22; and NZ King Salmon Investments was down 0.08c or 3.9% to 19.7c.
The listed mineral explorers were impacted by the sudden fall in the gold price, which was trading at US$3988 an ounce after reaching a high of $4362 a week ago. Santana Minerals fell 8c or 8.65% to 84.5c; Uvre declined 2.5c or 9.09% to 25c; Manuka Resources was down 1.4c or 18.18% to 6.3; and New Talisman Gold Mines decreased 0.003c or 5.36% to 5.3c.
Ebos Group, down 40c to $28, has opened a 30,000sq m pharmacy wholesale distribution centre in West Sydney featuring a 1.75MW rooftop solar array. It is the sixth new distribution centre as part of the company’s four-year, $360m renewal programme.
Power pole monitoring firm Ike GPS was up 5c or 5.15% to $1.02 after reporting a 5% increase in revenue to $12.8m for the first six months of the present financial year. Recognised platform subscription revenue rose 35% to $8.8m, and ike GPS confirmed its full-year guidance of 35% or greater growth in platform subscription revenue. Operating earnings (ebitda) would break even in the second half.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 17 points higher at 9028.
- close [Morningstar with AAP]: The local share market has handed back the previous session's gains with interest, after stock-specific shocks and mining sector selling weighed on sentiment.
The S&P/ASX200 fell 43.1 points, or 0.48 per cent, to 9,012.5 as the broader All Ordinaries lost 56.1 points, or 0.6 per cent, to 9,295.8.
A banking sector rally couldn't dig the bourse out of trouble, as health care and IT stocks were dragged under water by segment giants CSL and WiseTech, which each sank more than 15 per cent.
The plunge in CSL shares followed slashed earnings guidance, while WiseTech tumbled after its officers were raided by the Australian Federal Police amid improper trading allegations.
The materials sector was also hammered as investors took profits on gold stocks and critical minerals miners, with an impending US-China trade deal weighing on safe-haven appetite and bringing a recent rare earths rally crashing to reality.
"The pressure that we're seeing across the board today has really weighed on metals and put mining under severe pressure and clearly the pressure on the gold price has been part of that," Moomoo market strategist Michael McCarthy told AAP.
Spot gold is trading at $US3,967 ($A6,050) an ounce, down about 9.5 per cent from all-time highs just over a week ago.
Large caps BHP, Fortescue and Rio Tinto held up well compared to the rest of the segment, slipping about 0.5 per cent each.
"It was the frothy part of the market, the part that's run so hard, the gold miners, the rare earths and a few specialists that are really getting a belting today," Mr McCarthy said.
"I suspect materials are going to be under pressure for the rest of the week, particularly gold, which looks like a bursting bubble."
Energy stocks were also under pressure, sliding 1.7 per cent as oil prices edged lower as signs of a global supply glut outweighed any concerns over US sanctions on Russian crude.
Woodside and Santos each tracked at least 1.7 per cent lower, while investors faded coal producers and uranium miners.
A rally in the big four banks helped lift the financials sector 1.3 per cent, providing a limited ballast against broader losses as Commonwealth Bank climbed to 11-week highs above $175 a share.
Consumer discretionary stocks also performed well, up 1.7 per cent and tracking with a strong lead from Bunnings owner Wesfarmers.
In other company news, Domino's Pizza shares rocketed 7.2 per cent higher before going into a trading halt, amid a rumoured private equity buyout.
The Australian dollar is buying 65.56 US cents, up from 65.38 US cents on Monday at 5pm.
Wednesday's quarterly inflation figures are expected to show rising price growth which, along with hawkish comments from RBA governor Michele Bullock overnight, have weakened the odds of an interest rate cut next week.
"For the first time in six months, I would argue, the market has taken notice and realised it does depend on the data, not on what we want, which is rate cuts," Mr McCarthy said.
"The reaction to the market today reflects a dawning realisation, rather than any change in direction from governor Bullock."
ON THE ASX:
The S&P/ASX200 fell 43.1 points, or 0.48 per cent, to 9,012.5
The broader All Ordinaries lost 56.1 points, or 0.60 per cent, to 9,295.8
The NZX 50 added 6.51 points (0.05%) to 13409.17
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended higher. The DJIA gained 0.3% to 47,706.37, the S&P 500 climbed 0.2% to 6,890.89 and the Nasdaq lifted 0.8% to 23,827.49.
Among S&P 500 companies, the top three gainers were Regeneron Pharmaceuticals Inc REGN surging 11.82%, MSCI Inc MSCI jumped 8.58%, and United Parcel Service Inc UPS lifted 8.00%.
The biggest decliners were Alexandria Real Estate Equities Inc ARE which dropped 19.17%, Zebra Technologies Corp ZBRA fell 11.68%, and Everest Group Ltd EG lost 11.36%.
Asia
Chinese shares closed lower. The benchmark Shanghai Composite Index declined 0.2% to 3,988.22 and the Shenzhen Composite Index fell 0.2% to 2,516.97.
Hong Kong shares ended lower. The benchmark Hang Seng Index dropped 0.3% to 26,346.14.
Japanese shares ended lower. The Nikkei Stock Average declined 0.6% to 50,219.18.
India shares ended lower. The BSE SENSEX dropped 0.2% to 84,628.16.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index lifted 0.4% to 9,696.74. In Europe, shares closed lower. The Germany's DAX fell 0.1% to 24,278.63, and the France's CAC 40 slipped 0.3% to 8,216.58
