​​Podcast – PPH, Plexure, Moa | Fonterra Rebound

27 September 2019

Global markets ​were lower overnight ​after a report that the United States is unlikely to extend a waiver allowing American firms to supply China’s Huawei, added to worries over an inquiry into the impeachment of President Donald Trump.

​This week's stock market movers podcast discusses Pushpay & Plexure Guidance. Fonterra Pays some Debt. Moa gets into the Pizza Game. To listen CLICK HERE.

Stock in Focus: Fonterra (FSF:NZX / FSF:ASX)

Fonterra Shareholders' Fund units jumped 9% yesterday as it reported a bigger annual loss of $557 million as expected, booking $826 million of impairments and other one-off charges. However, it also unveiled a new strategy focused on extracting more value, primarily from its New Zealand business, as opposed to chasing volume.

While there was some share price relief yesterday, we think it is a long road ahead in terms of a turnaround for the dairy giant. We are happy to continue watching from the side-lines. 

We currently have a​ HOLD rating on ​Fonterra​.

Australia & New Zealand Market Movers

​​​The Australian market ​continued to trend lower on Thursday (ASX 200 Index -0.​49​%) ​with most major sectors lower, while growth orientated stocks outperformed. ​

Lendlease shares climbed ​after the property giant lodged a prospectus for a $1 billion real estate investment trust that will list on the Singapore exchange, with 13 cornerstone investors already committing $S400 million ($429 million) towards the initial public offering.​ ​FlexiGroup shares soared 23% after announcing it had increased the total number of retail partners on its buy-now, pay-later platform, Humm, to 18,000 with the number of year-to-date transactions on the platform up 25 per cent on the prior corresponding period.

The New Zealand market was ​lower yesterday (NZX 50 Index ​-​0​.36%)​ amid global uncertainty. ​Spark New Zealand fell even as a Commerce Commission report found the mobile market was in good shape, but that there was scope for consumers to put pressure on carriers by shopping around for the best deal. Outside the benchmark index, Plexure Group fell after forecasting revenue to rise as much as 36% in the March 2020 year. It didn't provide earnings guidance, saying its investment plans couldn't be accurately assessed.


3 Things Markets Will be Watching this Week

  1. ​​​Trade War related news-flow is likely to continue to feature in headlines.
  2. The ​Reserve Bank of New Zealand makes an interest rate decision on Wednesday.
  3. Reserve Bank of Australia Governor Lowe also makes a speech on Tuesday.


Have a Great Day,


This week's stock market movers podcast discusses Pushpay & Plexure Guidance. Fonterra Pays some Debt. Moa gets into the Pizza Game.

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