Pre-Open Data
Key Data for the Week
Australian Market
The Australian sharemarket inched ahead 0.1% on Wednesday, after strong gains made early in the session were retraced. Nevertheless, the ASX 200 closed at its highest level since January.
Most sectors advanced, except the Energy (-0.6%) and Materials (-1.5%) sectors, which broke their three-day winning streak after the price of oil, gold and iron ore retreated on Tuesday night. Notable detractors included Paladin Energy (-4.3%), BHP (-1.6%) and Oz Minerals (-3.8%). Rio Tinto also slipped 2.8%, after it reported a “challenging” 1Q2022, with lower than expected iron ore shipments and production.
Meanwhile, the Health Care (2.6%) sector boosted the local sharemarket, after news that Ramsay Health Care had received a takeover offer of $88 per share from a consortium of financial investors, led by American global investment company Kohlberg Kravis Roberts & Co. The offer represented a 36.7% premium to the company’s closing price on Tuesday. In response, Ramsay Health Care’s share price surged 24.2% on Wednesday, closing at $80 per share.
In other company news, oil and gas producer Santos (-1.1%) lost ground, after it announced a new capital management framework, which included an on-market share buyback of up to US$250 million. Furthermore, shares in Bega Cheese rose 1.0% yesterday, despite reporting that floods across Eastern Australia had “disrupted customer deliveries and increased transport and logistics costs”.
The Australian futures market points to a 0.40% increase today.
Overseas Markets
European sharemarkets were firmer on Wednesday, helped by positive company earnings results. The Technology (2.4%) sector led gains, pushed higher by chipmaker ASML Holding (5.3%). The company reported better than expected first quarter earnings and stated that it saw “zero” signs of easing demand. German semiconductor manufacturer, Infineon, also benefitted from the news, up 2.3%. Meanwhile, French food group, Danone, jumped 5.8% after it reported strong quarterly sales growth. By the close of trade, the STOXX Europe 600 added 0.8%, the German DAX rose 1.5% and the UK FTSE edged 0.4% higher.
US sharemarkets were mixed on Wednesday, after gains made by most sectors were impeded by key detractors. Netflix was a major detractor, down 35.1%, following its report of a 200,000 decrease in subscriber numbers in the first quarter. Other notable movers included mega caps like Amazon (-2.6%), Meta Platforms (-7.8%) and Alphabet (-1.8%). Meanwhile, IBM (7.1%) and Procter & Gamble (2.7%) both rose after positive earnings results. By the close of trade, the S&P 500 was relatively flat, the Dow Jones rose 0.7% and the NASDAQ lost 1.2%.
CNIS Perspective
New Zealand inflation accelerated in the first quarter to its fastest pace in 32 years, supporting the central bank’s decision to raise interest rates by half a percentage point as it pursues an aggressive tightening cycle.
Headline inflation surged to 6.9%, from 5.9% in the last quarter, better than economists’ consensus forecast of 7.1%. This slight discrepancy is a result of economists expecting a larger advance in the core consumer retail prices.
The weakening of the New Zealand Dollar has contributed to the cost of imports, driving the inflationary environment further.
Should you wish to discuss this or any other investment related matter, please contact your Wealth Management Team on (02) 4928 8500.
Disclaimer
The material contained in this publication is the nature of the general comment only, and neither purports, nor is intended to be advice on any particular matter. Persons should not act nor rely upon any information contained in or implied by this publication without seeking appropriate professional advice which relates specifically to his/her particular circumstances. Cutcher & Neale Investment Services Pty Limited expressly disclaim all and any liability to any person, whether a client of Cutcher & Neale Investment Services Pty Limited or not, who acts or fails to act as a consequence of reliance upon the whole or any part of this publication.
Cutcher & Neale Investment Services Pty Limited ABN 38 107 536 783 is a Corporate Authorised Representative of Cutcher & Neale Financial Services Pty Ltd ABN 22 160 682 879 AFSL 433814.