Friday 20 October 2017
Read Investor News for weekday coverage of the economic, market and political news headlines of relevance to investors. These headlines are sourced daily by our Private Wealth Research Team.
The NZX wrap up
The NZX50 managed to extend its winning streak again in yesterday’s trading session, rising a further 0.11% for its thirteenth straight session of gains. However, most attention was on Winston Peters for the day as we eagerly awaited the decision on who would be our next Prime Minister.
In true Winston Style, he kept us waiting as long as possible and the afternoon announcement quickly turned into an evening announcement, at which he announced that he would be forming a coalition with the Labour Party, making Jacinda Ardern New Zealand’s Prime Minister in waiting. Further details will be released over the next week in terms of how the government will be formed.
Comvita was the top performer for the session, rising a further 3.29% and building on the gains from the previous session that stemmed from its AGM. The company gave positive forward guidance following a strong first quarter of sales through the grey channel into China. Neil Craig the Executive Chairman of Craigs Investment Partners Limited and is the Non-Executive Chairman of Comvita Limited.
Spark New Zealand gained 3.01% for the session to close at $3.76, while Port of Tauranga gained 1.59% to close at $4.46 following its AGM. POT’s guidance was in line with expectations and saw strong first quarter sales. ANZ Bank’s NZ listing gained 1.11% while Mercury was the top of the Gentailers rising 1.02%.
Restaurant Brands was the biggest decliner on the local bourse, falling 1.86% to close at $6.87. RBD is now done for the week, reversing the strong gains it saw on Tuesday. However, for the year the company is well ahead, gaining more than 35% as positive catalysts and a solid acquisition strategy have benefitted the company.
Summerset slipped 1.74% for the session, adding to losses from the previous few days to close at $4.90. Tourism Holdings fell 1.25% to close at $4.74, while market heavyweight Fisher & Paykel Healthcare slipped 1.23%. Kiwi Property Group fell 1.11% for the day to close at $1.335.
Migration turns a corner
Net migration has fallen in September according to the latest figures from Statistics NZ, raising the question: have we seen the peak of migration already?
Winston Peters, as Kingmaker, has crowned Jacinda Ardern Prime Minister of New Zealand making a coalition with Labour, the Greens and New Zealand First.
So where too now?
So now we know that Jacinda Ardern will be the Prime Minister, who else will be in charge? Over the next week or so we will find out who will make up the important parts of the Government.
NZ market to keep moving on
Despite strong early declines this morning, the NZ market has shrugged off the election result and resumed business as usual and logged its fourteenth session of gains in a row.
This article should not be deemed as advice. For personalised investment advice contact an Investment Adviser or phone 0800 272 442. Disclosure statement available free of charge and on request, visit craigsip.com. Read our full disclaimer here.