Global markets rebounded strongly on Friday, with US Markets in the green (S&P 500 Index, up +2.2%) as investors digest developments around Russia’s invasion into Ukraine. While there may a large impact on certin regions, industries, and sectors, the sanctions are thought to have a limited impacted on the global economy with the war likely confined to Ukraine soil.
Market sentiment also improved after Krelilin reported it agreed to talks with Ukraine on Monday but also put its nuclear forces on alert. Russian troops have not made significant gains in Kyiv so far.
All sectors were in the green with materials and financials leading gains. Ebay shares rose +16.2%, leading the US market after the online marketplace’s quarterly results beat analyst estimates.. Johnson & Johnson jumped +5% after a US judge gave the go ahead for the pharmaceutical giant to use the bankruptcy system to resolve multibillion-dollar litigation. Shares of Beyond Meat tumbled 9.2% after a disappointing earnings report.
European Markets rebounded strongly on Friday (Stoxx 600 index +3.3%), as bank stocks led gains.
Adveritas (AV1:ASX)
Adveritas rose +10.5% on Friday after releasing their half year result, which didn’t contain too many surprises after releasing their trading update earlier. Annualised revenue came in at $1.72m for the half, up 68% driven by enterprise client wins, strong renewal rate, further expansion of its sales pipeline, and invest in its sales capabilities to drive future growth.
Most encouraging is that the Traffic Guard / Google cloud market place relationship is progressing strongly, ready for the 2022 financial year fourth quarter launch and a new Chief Marketing officer appointed to lead integrated sales and marketing approach.
We remain BUY rated on Adveritas.
Australia & New Zealand Market Movers
The Australian market edged higher on Friday (ASX 200 index +0.1%) on a mixed bag of movements.
Following a sharp drop on Thursday, tech shares managed a strong recovery rally lead by Block which soared +32.5% after encouraging December quarter result.
Harvey Norman rose +3.2% after its half year sales declines less than expected, while Kogan.com fell -6.2% after their earnings decline fell more than expected. Blackmores suffered the largest fall down -10.5% following a weak result. Magellan fell -10.1% after its total funds under management fell another $10 billion over the last two weeks.
The New Zealand market was up on Friday (NZX 50 index +1.6%) as global equites started to recover pricing in the worst of the economic sanctions against Russia.
Gains were mostly broad-based, with many heavy losers on Thursday reversing losses, Vista Group rising +8.2%, Ryman Healthcare up +6%, and Precinct Property lifting +4.7% higher.
Tourism Holdings rose +5% on its result, which was also pre-flagged, but contained larger than expected margins on vehicle sales.
Delegat fell -0.5% on challenging result weighed down by shipping constraints, adverse foreign exchange movements and reduced New Zeeland Vintage. Port of Tauranga was unchanged on despite a strong result benefiting form higher than average container pricing and congestion related storage income stays elevated.
3 Things Markets will be Watching this Week
- Geopolitical Risks – Russia/Ukraine.
- Eurozone inflation figures and the latest manufacturing data in China.
- Locally, the RBA meeting will be a big focus along with Q4 GDP data in Australia.
