New Zealand Market Movers
The New Zealand market (NZX 50 Index, +0.8%) rose on Tuesday, buoyed by a dramatic lift in Fisher & Paykel Healthcare (+10.1%) and Gentrack (+18.3%). See our Stock in Focus section for more on Fisher & Paykel. Gentrack reported revenue of $126.3 million for its 2022 full-year results, up 19.5% on its full year 2021. Aged care provider, Arvida Group (+4.2%) also surged after reporting its half year Net profit after tax of $89.2 million, up 18% from the previous corresponding period.
Australia Market Movers
The Australian market (ASX 200 Index, +0.3%) closed higher on Tuesday, with Materials (+1.7%) the best performing sector, as investors bet that Beijing loosen its zero-Covid policy in reaction to the protests erupting across the country and iron ore futures top US$100 per tonne for the first time in two months. Rio Tinto (+3.5%) and BHP Group (+2.1%) both advanced on the day.
Europe Market Movers
European markets (Stoxx 600 Index, -0.1%) closed marginally lower on Tuesday. The Resource (+2.7%) sector was the best performing sector with Chemicals (-1.7%) the worst.
Economic sentiment in the Euro Area rose in October, following eight straight months of declines, improving for the first time since Russia’s invasion of Ukraine.
US Market Movers
US markets (S&P 500 Index -0.2%) traded flat for most of Tuesday as investors anticipate US jobs data starting tomorrow, although did close lower for the third consecutive day.
Chinese internet stocks were some of the day’s biggest movers. Bilibili (+22.3%) surged after reporting better-than-expected earnings and revenue. Elsewhere, JD.com (+10.9%), Baidu (+9.0%), and Pinduoduo (+5.9%) all climbed more than 5 percent.
Stock In Focus: Fisher & Paykel Healthcare (FPH.NZX)
Fisher & Paykel Healthcare (+10.1%) soared yesterday as it reported revenue of $690.6 million for the six months ended 30 September 2022, above the $670 million forecast by the company in August. Revenue was down -23% from the previous corresponding period, but up by +21% on the comparable pre-pandemic period.
More importantly, notes on the company’s outlook moving forward were promising, with FPH reporting that “we expect second half revenue for the 2023 financial year will be higher than in the first half”, however, FPH declined to give full-year quantitative revenue or earnings guidance. The market has been buoyed by management signalling that: (1) a proportion of Hospital customers have worked through overstocking issues, while (2) gross margin pressures have likely bottomed, with freight costs also easing. The market had clearly got too bearish on the stock, which we see as a top-quality healthcare company with a great track record. We maintain our BUY rating as looking forward the possibility a strong Northern Hemisphere flu season should help the normalisation process.
What Markets will be Watching this Week (UTC +13)
Monday
NZ Kiwi Property Group earnings
Tuesday
NZ Fisher & Paykel Healthcare earnings
EA Economic Sentiment NOV
Wednesday
EA Inflation Rate YoY November
Thursday
US ADP Employment Change November
US JOLTS Job Openings October
US Salesforce earnings
EA Unemployment Rate October
Friday
US Personal Income MoM OCT
Saturday
US Non Farm Payrolls November