Global markets were mixed on Friday, as Trump said the United States may not have to impose further tariffs on Chinese goods, but falling shares of Nvidia Corp dragged down the Nasdaq Technology Index.
Risk off investor sentiment returned to markets last week, as tech stocks came under renewed pressure and the continuing plunge in the oil price weighed on energy shares.
The market is likely to be volatile in the week ahead as uncertainty remains around a number of global issues, including the United Kingdom's Brexit deal.
There are uncertainties around US/China trade, Brexit, Italy's budget standoff, and the direction of global oil prices. As we mentioned last week, markets are awaiting a potential trade agreement as Trump and Chinese counterpart Xi Jinping are due to meet later this month on the side-lines of the Group of 20 summit in Buenos Aires.
Stock in Focus: Costa Group (CGC:AX)
Shares in Costa Group jumped by almost +12% on Friday, as the fresh fruit and vegetables producer announced the acquisition of citrus fruit and grape grower Nangiloc Colignan Farm (NCF).
The market was clearly excited by the transaction. NCF is located in the greater Sunraysia district of North West Victoria. Citrus fruit and grapes are grown across a total of 567 hectares. This breaks down to 240 hectares of citrus including 103 hectares of Afourer mandarins and 105 hectares of oranges, 204 hectares of table grapes and 123 hectares of wine grapes. Costa plans to convert a lot of the wine grape plantings to primarily citrus plantings.
It is also encouraging that Costa is diversifying its growing regions, meaning it can continue supplying clients even if there are problems at one particular location. This reduces its risk profile relative to other more concentrated peers.
We continue to see Costa as an attractive way to gain exposure to global food demand trends, particularly with the rise of the health-conscience consumer.
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