Thursday, 15 Apr 2021

Jarden Brief: Figures show which cars Kiwis bought in February

Keeping you up to date with the latest market moves, in association with Investment firm Jarden

New Zealand:

The NZX 50 ended the day up 0.1 per cent. The financial sector was the best performer, up 2.3 per cent, followed by the consumer cyclicals sector, up 1 per cent. Technology was the worst performing sector down 0.5 per cent.

The top performer yesterday was Genesis Energy up 2.7 per cent. Skycity Entertainment Group had the second biggest increase up 2.6 per cent, followed by electricity and gas distributor, Vector, up 2.5 per cent.

Sanford lost some of its gains from Tuesday down 3.4 per cent and the worst performer of the day. Spark was down 1.4 per cent as was infrastructure investment company, Infratil.

New Zealand car sales data showed new car sales up 10.1 per cent in February 2021 compared to February 2020. Commercial vehicle sales were up 21 per cent. Pure electric vehicles (181 sold), plug-in hybrid electric vehicles (80 sold) and hybrid petrol-electric vehicles (752 sold), make up the New Energy Vehicle category at 11.65 per cent of passenger cars sold. Sales in this category were at a 10-month low last month.

Comparatively SUVs represented 76 per cent of passenger car sales in February, with 786 Toyota Hiluxes sold.

Fuel supplier Z Energy’s price fell 0.7 per cent yesterday. It announced the creation of a new GM (General Manager) transition role filled by Julian Hughes and appointed Nicola Law as the new GM Commercial.

Ryman Healthcare also made an announcement on the appointment of their first CEO-Australia Cameron Holland and Chief construction Officer Chris Evans.

Earlier in the week New Zealand-American company Rocket Lab confirmed plans to list on the Nasdaq exchange, with an expected price near US$4.1 billion. It announced a projected revenue of US$750 million by 2025.

INTERNATIONAL MARKETS:
US:

At the time of writing, the Dow Jones Industrial Average was down 0.5 per cent, the Nasdaq was down 1.1 per cent, and the S&P500 was down 0.3 per cent.

This is likely in part due to an increasing yield environment which can have a significant negative effect on equity valuations as people prefer safer fixed interest assets and the discount rate increases. Furthermore, unfavourable macro-economic data was released in the US yesterday, showing US private employers had hired far fewer people than expected in February.

The top sectors were Energy and Financials, up 2.4 and 1.7 per cent whilst utilities and information technology were the worst performers slumping 1.4 and 1.1 per cent so far during this mornings trading.

Among the top performers were Diamondback Energy Inc and telecommunications service provider Centurylink Inc which had increased about 8 per cent at the time of writing. Diamondback (Oil and Natural Gas) traded favourably after an increase in oil prices whilst Centurylink goes ex-dividend tomorrow.

On the flip side, ETSY Inc (one of the big gainers earlier in the week) was down 10.5 per cent at the time of writing. It was a volatile week for ETSY reaching record highs and now falling back. Its earnings report was released today.

Asia:

Overnight, the Shenzhen index was up 1.2 per cent, the Shanghai Index was up 2.0 per cent, the Nikkei 225 was up 0.5 per cent and the Hang Seng index was up 2.7 per cent.
In a move that demonstrates its growing importance as a financial hub, Goldman Sachs announced plans to hire 100 people in Singapore, taking its headcount there to 1000. Most of the hires will be in technology, but the investment banking division will also receive reinforcements in the face of the “strongest deal pipeline seen in years”. Singapore is also gaining popularity with market participants as Hong Kong becomes mired in political controversy and businesses increasingly look elsewhere.

Commodities:

Gold was down 1.0 per cent at US$1717.50 per ounce. Crypto currencies rose today with Bitcoin jumping 8 per cent to US$51,400, while Ethereum followed suit with its own 10.0 per cent increase, now trading at US$1,630.40. WTI Crude oil continued up at US$61.53 per barrel after a US government report confirmed a large decrease in oil inventories in the aftermath of the record freezing temperatures which shut refineries and halted production last month. US 10-year treasury yields continued to rise, now at 1.48 per cent.

Australian Markets:

Yesterday the S&P ASX200 closed with a 0.8 per cent gain.

This increase was driven by the Australian Gross Domestic Product (GDP) release for the December 2020 quarter by the Australian Bureau of Statistics (ABS). GDP was up 3.1 per cent last quarter and, for the first time since recording began, increased by more than 3 per cent in two consecutive quarters. Household spending rose 4.3 per cent due to easing COVID restrictions, but is still below pre-pandemic levels. Private investment was up 3.9 per cent, and employee’s compensation up 1.5 per cent. The Agriculture, Forestry and Fishing Gross Value Added was up 26.8 per cent, benefiting from improved weather conditions.

Later today, the ABS will release January 2021 Retail Trade statistics, an important indicator of confidence in the Australian economy. The ABS is also releasing the International Trade in Goods and Services data for January 2021, an essential indicator for exporters.

In Wednesday’s session, the best performing sector was Materials, up 3.1 per cent, with prices increasing across the board.

However, most of the top five performing stocks were gold miners, who profited from a weaker US dollar. Ramelius Resources was the best performer of the day, with a 13.7 per cent increase to A$1.37. Silver Lake gained 7.5 per cent to close at A$1.44, Perseus Mining was up 6.5 per cent to A$1.16, and Westgold Resources rose 6.1 per cent to A$1.99.

Information Technology was the poorest performing sector, decreasing by 1.4 per cent. Due to higher bond yields, investors move away from growth stocks.

News Corp was the worst performer of the day, down 3.8 per cent to A$29.40.

• For more information on the latest market moves, get in touch with Jarden.

Disclaimer: This Morning Brief has been prepared in good faith and reflects opinions and views at the time of publication, using external sources, systems and other data and information we believe to be accurate, complete and reliable at the time of preparation.We make no representation or warranty as to the accuracy, correctness and completeness of that information, and will not be liable or responsible for any error or omission.This Morning Brief is not to be relied upon as a basis for making any investment decision. Please seek specific investment advice before making any investment decision. Jarden Securities Limited is an NZX Firm, a broker disclosure statement is available free of charge at www.jarden.co.nz. Jarden is not a registered bank in New Zealand. Full disclaimer available at: https://www.jarden.co.nz/limitations-and-disclaimer

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