Trade Sell-off Stabilisation | Invocare Update

15 May 2019

Global markets​ were higher overnight as Technology stocks led the market with US stocks reclaiming some ground lost to Monday’s steep sell-off. 

Investors took heart from a tonal shift in ongoing US trade negotiations with China. Several commentators believe the base case remains that a deal will be reached to resolve issues, but the risks to global growth are now higher and sharemarkets may need to fall further in the short term to remind both sides of the need for a deal. ​Once again, an all out trade war remains a key risk for markets at the current juncture. 

Stock in Focus: InvoCare (IVC:ASX)

​​​​​​​​​​​InvoCare shares rose yesterday after reporting a 9 per cent increase in profits for the March quarter compared with the same time a year ago. 

The funeral home operator said the death rate was beginning to return to long-term averages and a particularly nasty flu season could increase that rate.​ ​Invocare shares have recovered well this year and our long-term investment thesis remains intact as we believe IVC is set to benefit from favourable demographics of an aging population.​
We currently have a ​BUY recommendation on InvoCare.

Australia & New Zealand Market Movers

​​​​​​​​​​​The Australian share market ​sold off yesterday (ASX 200 index -0.​92​%)​ a​fter China retaliated against US tariffs, which led to a global sell-of​f. ​
​In stock news, ​ Iron ore miner Fortescue ​jumped as it ​stunned the market with a surprise special dividend of 60 cents per share, rewarding its shareholders with a massive $1.85 billion in payments next month.​ On the flipside, ​Mayne Pharma declined after reporting a 32 per cent fall in revenue from its generic products segment between January and April​

The New Zealand market​ ​​fell following global moves (NZX 50 index ​-​0.​56​%)​. The big news was confirmation that Vodafone NZ will be sold for NZ$3.588 billion to a consortium comprising of infrastructure investment company Infratil and Canada's Brookfield Asset Management. The deal, announced by Vodafone on Tuesday, comes as the company attempts to consolidate its Australia and New Zealand businesses to reduce debt. Infratil has been seeking out a high-quality telecommunications investment since chief executive Marko Bogoievski joined the infrastructure investor more than a decade ago.


3 Things Markets Will be Watching this Week

  1. ​ Mini reporting season across Australasia sees a number of Aussie & Kiwi stocks make earnings announcements.
  2. Trade War headlines between the US & China are likely to remain a feature this week.
  3. The latest Aussie employment data is released Thursday.​

Have a Great Day,


Global markets​ were higher overnight as Technology stocks led the market with US stocks reclaiming some ground lost to Monday’s steep sell-off. 

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