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On April 20, 2021, NZX 50 veered sharply lower after investors choose to book some profits in Consumer staples, Materials, and Utilities stocks, among others. NZX 50 closed the trading session in red, resulting a fall of 0.70% to 12,678.55 and NZX 20 declined by 0.74% to 8,131.88. In line with this, NZX 10 witnessed a fall of 0.76% to 12,596.43. There has been an update about the April airport case. Notably, the Ministry of Health announced that border-related case has a direct link to the border as the source of the COVID-19 related infection.
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 12,678.55, reflecting an increase of 17.80% in one year, while MidCap Index and SmallCap Index claimed at 6,236.38 and 21,857.62 points, respectively, outperforming the S&P/NZX 50 Index and reporting a growth of 25.49% and 67.22%, respectively, indicating strong resilience in MidCap and SmallCap stocks over the period.
S&P/NZX 50 Index vs SmallCap Index vs MidCap Index – One Year Return
Source: EODHD/Others (Thomson Reuters)
Gainers and Losers:
On April 16, 2021, Marlborough Wine Estates Group Limited (NZX: MWE) announced that it has completed 2021 harvest. As indicated to the shareholders in the month of February, the vintage is lighter in yield post an unseasonal cool weather period in Marlborough during flowering in late November as well as early December 2020. The company’s release also stated that 2021 harvest is down ~26% on the 2020 vintage's record harvest as well as ~20% on average expected tonnes. The lower yield would be reducing the volume of grapes and bulk wine available for the customers and would be impacting the company’s profitability negatively in this financial year. There happens to be an upward pressure on grape pricing this year, and the company is expecting to achieve the higher price per tonne based on the district average pricing increases, which could partially offset expected loss of revenue.
On April 20, 2021, NZME Limited (NZX: NZM) stated that, in relation to both censures released by the NZ Markets Disciplinary Tribunal, it has, in the settlement agreed with NZX Limited as well as endorsed by the NZ Markets Disciplinary Tribunal, accepted the breaches and the imposed penalties.
Data Source: NZX, Table Source: Kalkine Media Pty Ltd
Movements on Wall Street: On April 19, 2021, Dow Jones Industrial Average declined by 0.36% to 34,077.63. On the same day, NASDAQ Composite fell by 0.98% to 13,914.77.
Also Read: Is NZX 50 Following Gains of Last Week?