Podcast – NZX Discussion | NZ King Salmon

3 May 2019

Global markets were ​lower for a second day following the Federal Reserve’s latest interest rate move signal, with investors awaiting Friday’s US employment data report and news on trade talks. ​

​In the latest stock market podcast, Jeremy evaluates the NZX and discusses them from an investment perspective.  Diving into why the stock has under performed the market over the last 5 years and discusses what is on the tip of everyone's tongue, that is the lack of recent IPOs.  ​

​To listen to the latest episode: CLICK HERE​
 

Stock in Focus: NZ King Salmon (NZK:NZX / NZX:ASX)

​​​​​Shares in​ NZK were flat yesterday after falling sharply on Wednesday.

​This Salmon business saw its shares plummet after ​warning that warm water had increased its fish mortality rate, meaning its harvest would be smaller than expected for the next two seasons. 
While NZK has a great business and product in high demand, weather events such as this are largely an unavoidable risk for companies such as NZK. Management are also attempting to move some of their sites to cooler waters, which will require government approval.​
 
We currently have a ​HOLD​ recommendation on ​NZK​.
 

 

 
Australia & New Zealand Market Movers

​​​​The Australian share market ​was lower on Thursday (ASX 200 index ​-​0.​59​%) ​as ​​banking stocks weighed on the market after National Australia Bank cut its dividend payment to shore up its capital position while footing an A$525 million bill to fix the problems uncovered by a royal commission of inquiry into the sector.​
AMP shares fell after announcing its quarterly outflows from its wealth management arm hit $1.8 billion as superannuation and platform customers took their money elsewhere in the aftermath of the Hayne royal commission.

 
The New Zealand market ​rallied yesterday (NZX 50 index ​+1.​20​%) as investors welcomed greater clarity on Z Energy's dividend intentions in the first local result of the latest reporting season. Index re​-​weightings from Trade Me Group's pending departure were also a feature.​
Z Energy advanced after the transport fuels company signalled at least a 12 percent increase in dividends as it continues to strip out costs since integrating Caltex into its network. The company reported a 13 percent decline in annual earnings due to the extended outage at Marsden Point refinery and as record prices at the pump trimmed petrol volumes

3 Things Markets Will be Watching this Week

  1. ​​​The US first-quarter reporting season continues this week.
  2. Thursday morning (AU/NZ time) sees a ​meeting of the​ US​ Federal Reserve​, and the release of important monthly US manufacturing data​.
  3. The latest NZ employment figures are published on Wednesday.​

 

Have a Great Day,
 

Team

Global markets were ​lower for a second day following the Federal Reserve’s latest interest rate move signal, with investors awaiting Friday’s US employment data report and news on trade talks. ​

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