Is NZ 50 Reversing the Gains of Previous Two Positive Sessions?

Copyright © 2021 Kalkine Media Pty Ltd.

On April 15, 2021, it appeared that NZX 50 witnessed some profit booking as the benchmark Index reported a fall of 0.90% to 12,636.55 and NZX 20 fell by 1.00% to 8,102.87. It seems, the investors were prepared for further reduction in OCR, which did not happen in the recent monitory policy review by RBNZ. From the sectoral front, NZX All Energy declined by 2.48% and NZX All Health Care witnessed a fall of 1.31%.

Data Source: NZX, Table Source: Kalkine Media Pty Ltd

MidCap and SmallCap outperformed broader market: The broader market, S&P/NZX 50 Index stood at 12,636.55, reported an increase of 21.39% in one year, while MidCap Index and SmallCap that claimed at 6,222.96 and 21,716.64 points respectably, outperformed the S&P/NZX 50 Index and reported a growth of 28.99% and 74.04% respectively, indicating strong resilience in Midcap and Smallcap stocks over the period.

S&P/NZX 50 Index versus SmallCap Index versus MidCap Index – 1 Year Return

Source: EODHD/Others (Thomson Reuters)

Gainers

As per the release dated 14 April 2021, Michael Hill International Ltd (NZX: MHJ) stock price increased by 7.23% to NZ$0.890 after the company released its third Q3FY21 trading update (for the period ended 28^th March 2021). The company further improved its margin guidance as well as double-digit sales growth. As per the release, the company’s strategic growth agenda underpins the performance as the company accelerates digital innovation, embraces new ways to shop as well as elevate its brand. In Q3FY21, the company’s same store sales rose by 16.4%, and all store sales increased by 11.6% for the quarter over the previous year.

On April 14, 2021, The New Zealand Refining Company Limited (NZX: NZR) has confirmed the status of terminal negotiations is unchanged as previously disclosed to the market on 19 March 2021 and 1 April 2021. Meanwhile, the company is regularly accessing the feasibility of potential future option to be shifted to an import terminal operation. On these lines, the company is negotiating with Z Energy and Mobil. The stock price jumped by 5.05% to close at NZ$0.520.

Data Source: NZX, Table Source: Kalkine Media Pty Ltd

Movements on Wall Street

On April 14, 2021, Dow Jones Industrial Average increased by 0.16% to 33,730.89. However, NASDAQ Composite declined by 0.99% to 13,857.84.