Jarden Brief: Stocks surge as millions of Americans receive US$1400 stimulus payments

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

New Zealand:

The NZX closed Monday’s session up 1.3 per cent.

The best performing sector for the day’s trading was health care increasing 2.5 per cent.
Tilt Renewables’ share price increased by 17.4 per cent to $7.61 after the firm announced it had entered into a Scheme Implementation Agreement, whereunder Powering Australian Renewables (PowAR) will acquire Tilt Renewables’ Australian business, and Mercury NZ (+0.5 per cent) would acquire the New Zealand arm. Under the agreement, Tilt
Renewables’ shareholders will receive $7.80 per share. Infratil (+3.6 per cent), who holds 65.5 per cent of Tilt shares on issue has announced its vote in favour of the Scheme.

Jarden is advising Powering Australian Renewables in relation to this transaction.

The second biggest gainer of the day was Geneva Finance, up 16.7 per cent to $0.63, after the company announced its pre-tax profit is forecasted to be up 56 per cent on the previous year.

Marlborough Wine Estates was the worst performer dropping 25 per cent to $0.35. The drop occurred after 5 million ordinary shares, issued for a capital raise earlier this month, began trading last Friday.

Third Age Health Services decreased by 7.9 per cent to $2.32, despite the strong health sector performance, since yesterday was the record day of the special dividend announced early last week.

The Briscoe Group, which is the holding company of Briscoes Homeware, Living & Giving and Rebel Sport, is reporting its Full Year results today.

INTERNATIONAL MARKETS:
US:

At the time of writing, the S&P 500 was up 0.1 per cent, the DJIA was up 0.1 per cent and the NASDAQ advanced 0.4 per cent.

The top performing sector was Real Estate up 1.2 per cent with the worst performing sector being was Energy which slipped 1.7 per cent.

The US $1.9 trillion stimulus package rollout has begun, with US$1400 direct payments to be received by millions of Americans which has seen stocks pause as they rally to record highs. Today’s top performing stocks are retailer Macy’s up 12.0 per cent, Apartment Investment and Management Co up 8.8 per cent and United Airlines Holdings Inc up 7.8 per cent.

On the flip side, the worst performing stocks were Eli Lilly and Co, down 9.2 per cent, Occidental Petroleum, down 4.4 per cent and Eastman Chemical Co, down 4.0 percent.
Pharmaceutical company, Eli Lily and Co’s decline was driven by the release of a study on their Alzheimer’s drug, Donanemab, which only shows modest benefits over a 18 month period. This effectiveness fell short of market expectation and saw them down 9.2 per cent at the time of writing.

It is one year today since the S&P500 fell 12 per cent for its second worst day in history. The bull market, which has taken over in the wake of the Covid-19 market scare, has seen over $40 trillion added to the value of stocks globally.

Asian markets:

Asian markets were a mixed bag overnight, with the Shanghai index falling 1.0 per cent, the Nikkei up by 0.2 per cent, and the Hangseng up 0.3 per cent.

The Shanghai index was down after new economic data from China was released, providing colour to their economic recovery post Covid-19. The joblessness rate increased and investment in factories and other assets was lower than expected in February. However, industrial production and retail sales were strong. This data and its implications for the global economy, could have driven the comparatively weaker US market performance seen today than last week.

Commodities:

Traditionally an inflation hedge, gold recovered 0.6 per cent today at US$1729.50 per ounce. Oil prices fell 0.4 per cent to US$65.36 a barrel from a recent high. Crypto currencies were down across the board today with Bitcoin falling a significant 7.0 per percent and Ethereum falling 5.4 per cent.

Lastly, US 10-year treasury yields were relatively flat overnight, down two basis points, to 1.609 per cent.

Australian Markets:

The S&P/ASX 200 finished the session with a slim gain of 0.1 per cent following Reserve Bank Governor Phillip Lowe’s reassuring but cautious speech outlining the current state of Australia’s economy recovery.

The largest sector movements were Academic & Educational services, rising 3.3 per cent, and Health Care, up a modest 1.0 per cent. Basic Materials and Industrials were down 1.0 and 0.5 per cent respectively.

Today’s largest single stock mover was Tilt Renewables (TLT) up 15.0 per cent.

Following TLT was Analytics company Nuix ltd, moving up 6.4 per cent.

On the losers podium today, Technology company Afterpay fell 4.5 per cent after confirming an AUD$1.5 billion debt issuance on Friday. The second worst performer was Automotive Retail company Eagers Automotive Ltd, down 4.4 per cent.

In other news, a batch of capital raisings have also come to investors’ attention today. Currently listed on the ASX De.mem, a Wastewater Treatment business, is looking to raise secondary capital via an AUD$7.3 million placement and an additional share purchase plan. In addition, private equity-owned National Dental Care has indicated a potential ‘IPO 2.0’. National Dental Care’s first attempt in 2018 was unsuccessful after its majority owner Crescent Capital believed the IPO capital raised would not meet minimum expectations.

• 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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