Global markets were up on Friday, with US markets (S&P 500 Index, +1.2%) marking the fourth positive day in a row, capping off a strong weekly rebound (+6.1%, the best weekly performance since November 2020 up +6.1%). There was no clear catalyst, but dip buying globally outweighed continued geopolitical tensions.
Chinese leader Xi Jinping assured U.S. President Joe Biden that his country didn’t want war in Ukraine during a highly anticipated video conference on Friday. Xi reportedly told Biden that the invasion “is not something we want to see” and “the events again show that countries should not come to the point of meeting on the battlefield.
Optimism also returned to the market after the Fed provided some certainty despite one of the most hawkish meeting in 20 years. All sectors traded in the green except for Utilities, as Tech and Consumer discretionary led gains.
European Markets closed higher (Stoxx 600 index, +0.9%) despite no peace talks eventuating between Russia and Ukraine.
Briscoes Group (BGP:NZX)
Briscoes released another record result for the 2021 financial year (ending 30 January 2021) with net profit coming in at $87.91m which was up +20.1% from the previous year. Briscoes also achieved record sales of $744.4m, despite lockdown restrictions and operating in an uncertain and disruptive period. The group announced a final dividend of 15.5 cents per share inline with their pay-out ratio of at least 60% of net profit after tax.
We are Hold rated on Briscoes as we see it as fully valued.
Australia & New Zealand Market Movers
The Australian market was up Friday (ASX200 index, +0.6%) posting a weekly gain of +3.3%, as investor sentiment improved.
Most sectors traded higher, commodity sectors Energy and Materials both performed strongly, as well as tech shares continuing their rebound rally.
Star Entertainment fell -3.6% because a probe could declare the casino unfit to operate after the casino group found that A$900m in gambling transactions where disguised as hotel expenses. Abacus Property dropped -5.9% after completing an A$200m institutional placement to fund new acquisitions and developments.
The New Zealand market was up on Friday (NZX 50 index, +1.5%) to end the week strongly, following a strong lead from Wall street.
Pushpay lead gains again up +7.3% as investors digest its recent update and positive analyst notes.
Other growth stocks also performed well as risk appetite retuned, Pacific Edge rising +2.2% and Sky TV up +2.3%. While the likes of Scales and Auckland International Airport were both up +6% with a strong finish to the session on higher volume allowing for quarterly rebalancing.
3 Things Markets will be Watching this Week
- Geopolitical risks remain extremely elevated with the Russia/Ukraine conflict.
- Highlights this week include CPI inflation data in the UK.
- Locally, earnings from Kathmandu and The Warehouse, Z Energy holding its Scheme meeting to vote on Ampol’s takeover offer.