Jarden Brief: Apple down after lower demand cuts production

Keep you informed of the latest market movements, in association with the investment company Garden

International

WE

Major US indexes were all up at the time of writing. The Dow Jones
The Industrial Average and the S&P 500 both gained 1.6%. The Nasdaq followed closely behind, up 1.4%.

Sector performance was positive across the board, led by energy which gained 3.1%.

Communication services and materials increased by 2.8 and 2.2% respectively.

Leading the S&P 500, biopharmaceutical company Biogen has jumped 37.7% at the time of writing. This followed news of positive experimental results for a new Alzheimer’s disease drug and consensus analyst upgrades for the company. In participants with early-stage Alzheimer’s disease, the drug Lecanemab was shown to slow disease progression by 27% compared to placebo.

Drugmaker Eli Lilly and Co rose 8.0% to a new 52-week high. The company is currently conducting a drug study similar to that of Biogen.

Entertainment service provider Netflix gained 7.8%.

The clothing sector, VF Corporation, which recorded the biggest losses, lost 3.1%. The company set a new low of 52 weeks after the move.

Another company whose share price hit a new yearly low is medical device maker Align Technology, down 2.6% at the time of writing.

Finally, the maker of technological devices Apple fell 2.3%. Investors could react to production cuts following weakening demand for the latest version of the product.

Rest of the world

Major indexes in Asia fell. The Hang Seng fell 3.4% while the Shanghai Composite and the Nikkei fell 1.6 and 1.5%, respectively.

Conversely, European markets were positive today, with the DAX, FTSE and CAC up 0.4, 0.3 and 0.2%, respectively.

The Bank of England has delayed its plan to start selling bonds and will start buying long-term bonds instead. Monetary Policy Committee plans to cut bond holdings by £80bn a year are now postponed until October 31.

Goods

Energy futures are up across the board. WTI crude oil rose 3.6% to US$81.36 a barrel, while natural gas gained 1.3%.

Metals futures are also in the green. Gold rose 1.9% to US$1,666.9 an ounce, while silver rose 2.6%.

Bitcoin and Ethereum rose 2.2 and 0.6% respectively.

The 10-year US Treasury rate fell 21 basis points to 3.75%.

New Zealand

The NZX 50 fell 0.9% yesterday, closing at 11,120 points.

Leading the market, food company Scales, up 4.9%, reversed some of Tuesday’s losses.

Dairy company Synlait Milk rose 4.8%. The company recently released its annual results with net income after tax of $38.5 million and a 21% increase in revenue to $1.66 billion.

Electricity and gas distributor Vector gained 3.2% with no apparent news.

On the other hand, movie technology company Vista Group and retailer Warehouse Group both fell 6.1%. The Warehouse Group reported a 19.3% drop in net profit to $87.1 million in its full-year 2022 results yesterday.

The investment managed by Fonterra Co-operative Group, the Fonterra Shareholders Fund, decreased by 5.0%.

On Tuesday, New Zealand’s Primary Production Committee announced that it was inviting public submissions on the Draft Amendment to the Dairy Industry Restructuring Bill (Fonterra Capital Restructuring).

The bill would allow the fund to be partially and permanently separated from Fonterra. Also in the news, Fonterra Co-Operative Group is partnering with energy storage company PolyJoule on an application for a battery made from electrically conductive polymers.

Telecommunications company Vodafone New Zealand has announced its name change to One New Zealand.

The company was bought by the investment company Infratil (-0.9%) and the Canadian company Brookfield Asset Management for 3.4 billion dollars in 2019 from the British group Vodafone.

The cost of continued use of Vodafone trademark rights since then has been estimated at $20–30 million per year.

Australia

The ASX 200 closed in the red yesterday, down 0.5% at 6,462 points, setting a new 50-day low.

Eight of 11 sectors ended lower, led by information technology, down 1.6%. Consumer discretionary and financials also underperformed, falling 1.1% and 0.8% respectively.

Conversely, the best performing sector was utilities, up 1.9%, rebounding from Tuesday’s decline. Telecommunications services rose 1.4%.

Coal company Coronado Global Resources was the top performer in the index yesterday, rising 5.9%, now up 24.8% year-to-date.

Gold mining, production and exploration company Ramelius Resources also fared well, gaining 5.7% yesterday.

Coal mining and exploration company Whitehaven Coal, which built on Tuesday’s performance, rose 3.9% to top yesterday’s top movers.

Biotech company Telix Pharmaceuticals was the worst underperformer in the index yesterday, down 15.4%, now down 44.5% year-to-date.

The company announced that it had withdrawn its application for marketing authorization in Europe for its investigational product, Illuccix.

The withdrawal is due to the Danish Medicines Agency requesting additional chemistry, manufacturing and control data in the final stages of the review.

Mineral exploration and development company Core Lithium and biotech company Imugene closed down 7.6 and 5.3 percent, respectively, yesterday.

• For more information on the latest market movements, contact Garden.

All market prices and announcements are from Refinitiv, NZX and ASX.

Jarden advises Heartland Group Holdings Limited in its announced capital raise.

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