Global markets were down overnight, as the US market (S&P500) fell -5% in another volatile session as the economic fallout from the pandemic outweighed relief packages from major governments and central banks. Oil prices continues to collapse down another -25% to ~US$20 / barrel as the oil war escalates between Russia and Saudi's, putting more pressure on energy sector which was the major loser. European markets were down -3.9%, with all sectors in the red led by the energy sector, with Asian markets performing marginally better reporting slightly weaker falls.
The number of covid-19 cases continue to grow, now at 217,000 with 8,900 confirmed deaths, now growing at an exponential rate, causing more market volatility in the interim – with large scale actions now required to mitigate the spread. We are watching devlopments as they unfold in this unprecedented and fast moving situation.
Stock in Focus: Pushpay (PPH:NZX / PPH:ASX)
Pushpay shares led the market yesterday climbing +21.5% yesterday after the church payments software business announced its raised its operating earnings (EBITDAF) guidance for the 2020 financial year to be between US$25m to $US27m, a +$2m increase from its previous guidance.
The lift comes after church customers were reporting that is stage congregations were still using digital giving as in-person gatherings get suspended.
We currently have a BUY rating on PPH
Members should look out for a full update on PPH to be released in our weekly report
Australia & New Zealand Market Movers
The Australian market slumped on Tuesday (ASX 200 index -6.4%) giving away Tuesday's gains, to close below 5000 points for the first time since April 2016. With the market now pricing in risk of recession as there is no evidence that the global growth of covid-19 is peaking. CSL led the market wide sell off down -8.6%, along with the banks and other major blue chips (Wesfarmers, Telstra and Suncorp). Miners and Energy sector were hit hard as the price of crude oil hit 17-year lows as the price war continues. Afterpay shares were hit hard, tumbling -33% amid declining investor confidence in the discretionary retail sector
The NZ market was a touch higher yesterday (NZX50 +0.2%) as market heavy weights A2 Milk and Fisher and Paykel lifting the market higher both up +4.3% and 3% respectively.
Auckland International Airport fell -2.3% as the company reported passenger numbers for the seven days to Monday 16 march were -25% lower than the same corresponding period last year, and international passenger numbers on Monday alone was -44% lower than the same corresponding day last year.
Kathmandu shares tumbled as it highlighted a significant decline in footfall in Australasia, coupled with enforced closure of most European operations.
3 Things Markets Will be Watching this Week
- Coronavirus related news-flow remains key in terms of driving investor sentiment.
- Moves from central banks globally in response to coronavirus,
- Data from the US including building permits, housing starts and existing home sales. Closer to home, Australia’s latest employment data is due to be released on Thursday along with the latest net migration data in NZ.
Have a Great Day,