Global markets were quiet overnight given the US market independence day holiday.
The latest stock market movers podcast is out: Abano Healthcare, Warehouse Tour and Chris Heaslip hits the sell button on Pushpay, to listen CLICK HERE.
Stock in Focus: PGG Wrightson (PGW:NZX)
PGG Wrightson shares were higher yesterday after issuing a notice of meeting on 23 July where shareholders will be asked to back a court-approved scheme of arrangement to allow a 31 cent per share capital distribution.
Assuming the scheme is approved and implemented it is the intention of the Board to shortly thereafter effect a consolidation of PGW’s shares on a 1 for 10 basis, whereby every 10 shares will be consolidated into one share.
As we have discussed before, we believe the business fundamentals are still sound, and the business is trading at single digit price to earnings multiple. However, PGW will now a smaller, more concentrated business which is more heavily impacted by any adverse NZ specific events.
We currently have a BUY rating on PGW.
Members should look out for a full update on PGW to be released in our weekly report.
Australia & New Zealand Market Movers
The Australian share market added to its rally yesterday (ASX 200 index +0.49%) as the ASX experienced it best finish since 2007's record high. Retirement village company Aveo Group shares rose after confirming reports it was in exclusive talks with Canadian alternative asset manager Brookfield over a potential takeover.
The New Zealand market stayed in positive territory on Thursday (NZX 50 index +0.13%). Pushpay was the most traded stock once its trading halt was lifted, with 16.7 million shares changing hand as former chief executive Chris Heaslip sold 12.2 million shares at a clearing price of $3.70 a share. Fonterra Shareholders' Fund units posted the biggest decline on the NZX50, as investors continue to dump its share after losing confidence in the company's ability to deliver value to shareholders.
3 Things Markets Will be Watching this Week
- Trade related news flow is likely to remain in the headlines.
- The Reserve Bank of Australia makes an interest rate decision on Tuesday.
- Friday's US nonfarm payrolls (employment figures) will be the key event in terms of economic data.
Have a Great Day,