Global markets were higher on Friday, US Markets (S&P 500 Index, +2.4%) closed higher to avoid entering into ‘bear market’ territory and helped trim losses in another troublesome week. The weekly loss marked 6 consecutive weeks of losses now for the S&P500 and NASDAQ index, its longest weekly losing streak since 2011.
All sectors traded higher, as stocks tried to bounce back from their recent sell-off, consumer discretionary and tech being the best performing sectors. Twitter shares slumped -9.7% after Elon Musk he had put the takeover offer on hold as he investigates the number of fake accounts on the platform.
European markets (Stoxx 600 index, +2%) were up with travel and leisure stocks leading gains as all sectors traded in the green.
CSL (CSL:ASX)
CSL shares were under pressure mid-last week after announcing its $17.2 billion acquisition of Vifor Pharma would be delayed for a few a months, due to the regulatory approval process – but then the stock bounced back to a 4-month high.
We maintain our BUY rating on CSL, as a quality healthcare company, its shares have struggled since the pandemic as it struggled with plasma collection however this is starting to recovery making CSL a reopening play. It is still reasonably priced when taking into account return to growth in plasma collection over the near-term while further upside in earnings over the medium-term both organically from its established business and from the completion of the Vifor acquisition.
Australia & New Zealand Market Movers
The Australian market was up (ASX200 index, +1.9%) on Friday, to cut its weekly losses and recorded its fourth weekly loss in a row.
All sectors traded higher, tech shares leading gains as it recovered from its harsh sell off on Thursday and taking a positive note from US markets. Block (+15%) and Xero (9.4%) which were the worse performing stocks on Thursday were the strongest gainers on Friday.
Healthcare and Real Estate sectors were also strong performers on the day, both being hit hard by the recent sell off.
The New Zealand market (NZX 50 index, -0.1%) edged lower on Friday not experiencing a rebound like global peers on a mixed day of trade, with an almost equal mix of gainers and losers on the day.
The Warehouse group jumped +7.6% after its third quarter sales came in at $771.6m, down -2.5% from the previous year – but better than what the market had anticipated with the group considering re-entering the grocery market.
Stocks that have been sold off heavily managed to find some support, the likes of Fisher and Paykel (+3.4%), Auckland International Airport (+2.8%) and Oceania Healthcare (+2%) – the former benefiting from a stronger USD as it reached a two-year high against the kiwi.
3 Things Markets will be Watching this Week
- Geopolitical risks remain elevated given the Russia/Ukraine conflict.
- Eurozone Inflation and employment figures
- Locally, earnings from James Hardie, Argosy Property, Briscoes, Goodman Property Group, Infratil, Oceania Healthcare and Ryman Healthcare