Investor News

Investor News

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Friday 23 February 2018

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 NZX 50 logged another day of gains, again driven by strong performances from the current reporting season. The 0.81% gain bucked the global trend, which again saw a sell down on Wednesday. Reporting season will remain in focus going into next week, with plenty of companies due to report.

A2 Milk was again the top of the index, rising another 9.79% to close at $12.90. Stronger gains from earlier in the session, which saw ATM reach $14.62 a share, were pared back later in the day. Following this meteoric rise, ATM is now the biggest company by market cap on the NZX50 and is up almost 60% for the year to date.

Synlait Milk, which normally moves in tandem with ATM, finished lower on Wednesday after the announcement of a new strategic partnership a2 had formed with Fonterra. However SML bounced back on Thursday, rising 1.50% to $6.75, as its supply arrangements with ATM remain in place. Fonterra’s share price rose 1.16% to $6.10.

Fletcher Building gained 1.72% for the day to finish at $6.50, ending its recent losing streak which stemmed from the realisation of losses in its Buildings and Interior business. Air New Zealand had a strong day following its half year result, which saw the company reaffirm positive guidance for the full year despite the increasing price of fuel. AIR rose 1.18% to close at $3.00.

SkyCity fell 3.97% for the day to $3.87, reversing the gains from the previous day, while Chorus slipped 2.57% to $3.79. Metro Performance Glass continued to struggle and closed at 83 cents per share after a 2.35% decline. Precinct Properties fell 2.32% to $1.265 while Tourism Holdings pulled back 1.99% to $5.92. THL saw a moderate gain in the previous session after a strong result.

Global markets

The ASX managed to finish its positive week with a small decline on Friday as gains from earlier in the session were diminished. Financials and miners weighed on the index with positive results from reporting season unable to secure a gain for the day. The index closed down 0.08% on Friday however for the week finished up 1.44%.

The healthcare sector had a strong showing both on Friday and for the week benefitting from some stellar results. Heavyweight CSL got the sector off to a strong start earlier in the week with a very strong result, while Primary Healthcare and Medibank both boosted the sector on Friday. Reporting season continues with gusto this week across the Tasman, with Wednesday being a particularly busy day for the index.

It was a quiet day in Asia with many markets closed for the Lunar New Year celebrations. However, the Japanese Nikkei was open and had a strong session of gains. The index rose 1.19% taking its cues from the US and shrugging off a stronger currency. The market cheered the nomination of the Bank of Japan Governor to run the central bank for another term.

European shares rose strongly on Friday with the Stoxx 600 gaining 1.09% with all contributing indexes ending with strong gains. The Dax in Germany rose 0.86% while the French CAC gained 1.13%. All sectors rose for the day and for the week the broad index finished 3.26% higher, marking its best week in more than a year as it continued to take cues from the US.

The FTSE 100 in the UK recorded its best week since 2016 as it rose 0.83% on Friday and 2.85% for the week. The gain came despite retail sales figures missing expectations. In the US, both the Dow and S&P 500 eked out further gains on Friday, up 0.08% and 0.04% respectively, extending winning streaks to 6 days each. The Nasdaq however slipped for the session, falling 0.23%.

All indexes finished below session highs as political events sparked a bit of uncertainty, as 13 Russian nationals and 3 Russian entities have been indicted by Robert Mueller for allegedly tampering in the US election. For the week, the S&P 500 gained 4.30%, its best week since January 2013. The Dow Jones rose 4.25%, its biggest weekly rise since November 2016 while the Nasdaq rose 5.31%, its biggest weekly gain since 2011.


a2 goes in one direction

a2 Milk continues to rise after an exceptional result earlier in the week. The share price is now at $13 and the company is now the biggest on the NZX50 by way of market cap.


Comvita generates buzz

Comvita has had a solid result for its first half, and has reaffirmed its outlook for the full year. However, the share price has fallen 0.95% or the day so far, paring back earlier gains.


Reporting season winners

The local reporting season has seen some strong results for local companies, including Air New Zealand which was able to reaffirm guidance for the full year despite increasing fuel prices.


NZX on a reporting season roll

The NZX 50 is up again this morning boosted by the winners from reporting season. Port of Tauranga is leading gains this morning, up almost 4% after another strong result.


 

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