New Zealand Market Movers
The New Zealand market (NZX 50 Index, +1.3%) rose on Wednesday, thanks to positive updates from a range of companies.
Fletcher (+3.1%) advanced after it reconfirmed its 2023 forecasts for earnings before interest and tax to be greater than $855 million but with the caveat that it has a “clear playbook if activity shows any signs of softening in the next six to nine months”.
Restaurant Brands (+2.1%) rose after announcing that its September quarter sales surged +32% from the same corresponding period last year which was heavily impacted by last year’s lockdown, while sales year to date are up +15.7%.
Skellerup (+3.7%) jumped after announcing that it expects net profit for the year ending June 30, 2023, of $48 million – $52 million, beating its current record net profit of $47.8 million in 2022.
Australia Market Movers
The Australian market (ASX 200 Index, +0.2%) rose slightly on Wednesday, weighed down by a selloff in the Consumer Staples (-2.4%) sector.
Consumer Staples poor performance is due to hotter-than-expected inflation data which accelerated at the fastest pace since 1990. Annual consumer prices in Australia hit +7.3% (vs. expected +7.0%) in the September quarter of 2022, up from +6.1% in the previous quarter.
Coles Group (-2.7%) fell after posting sales of $9.89 billion in first-quarter 2023. Sales from its Supermarket chains rose +2.3%, helped by price inflation of +7.1%. Sales from its Liquor chains declined -4.3%. Woolworths (-3.2%) reports its quarterly earnings next week.
Europe Market Movers
European markets (Stoxx 600 Index, +0.7%) rose on Wednesday, led by gains in Mining (+2.8%) stocks. Markets are waiting for Thursday’s European Central Bank meeting and confirmation of the widely expected 75-basis-points rate hike.
US Market Movers
US markets (S&P 500 Index -0.7%) ended its three-day winning streak on Wednesday, dragged down stocks that have been reporting earnings.
Boeing (-8.8%), reported earnings today and cratered after posting a $3.3 billion quarterly loss widening from a $132 million loss a year earlier.
Alphabet (-9.1%) and Microsoft (-7.7%) were some of the worst performers on the day after both reported earnings after the bell on Tuesday. Continuing the rout in tech stocks, Meta Platforms (-6.0%, in normal trade heading into its result) reported earnings of 27.71 billion (vs. $27.38 billion expected) after the bell today and now trades -12% lower in afterhours trading.
Stock In Focus
Costa Group (CGC.ASX)
Costa Group shares jumped +10.8% yesterday, after private equity firm Paine Schwartz Partners acquired a 13.78% stake, paying $2.60 per share off market, a +12% premium above its close price on Tuesday. Paine Schwartz Partners used to be a significant shareholder in Costa and familiar with the business, and stated they currently have no intention in acquiring controlling state and have a focus on investing in multiple agriculture assets.
We remain Hold rated on Costa
What Markets will be Watching this Week (UTC +13)
Monday
CN GDP Growth Rate Year-on-Year Quarter 3
Tuesday
US Microsoft earnings
Alphabet earnings
Visa Earnings
Coca-Cola earnings
Wednesday
AU Inflation Rate YoY Q3
Meta Platforms earnings
Boeing Earnings
Thursday
CA BoC Interest Rate Decision
Apple earnings
Amazon earnings
McDonald’s earnings
Starbucks earnings
Friday
EA ECB Interest Rate Decision
US GDP Growth Rate Quarter-on-Quarter
Exxon Mobil earnings