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Australia (ASX) & New Zealand (NZX) Market Movers – 9th May

Australia and New Zealand Market Movers is provided by: Australasian Trading Management.

The Australian share market was in positive territory on Tuesday (ASX 200 index +0.12%) as the major banks recorded strong gains with all but NAB recording gains of over 1%. In stock news, Platinum Asset Management saw its shares bounce higher as it revealed that its funds under management had increased from $27.2 billion in March to $28 billion in April, an increase of $800 million.

The New Zealand market was a touch higher yesterday (NZX 50 index +0.07%) joining a regional rally. In stock news, Port of Tauranga gained after a Westpac Banking Corp regional economy report said increased March quarter volumes going through the port underpinned upbeat economic confidence in the Bay of Plenty. The New Zealand dollar held near a four-month low against the greenback as investors remain focused on Reserve Bank governor Adrian Orr’s first monetary policy statement on Thursday morning.

Stock in Focus: Healthscope (ASX:HSO)

An ageing population across Australia & NZ has been one of our key medium-term investment themes and we believe this will provide a multi-year tailwind for stocks in the healthcare sector such as Healthscope (Australia’s second largest private hospital operator), which we discuss below.

Shares in takeover target Healthscope continued to move higher yesterday as it was revealed NorthWest Healthcare Properties had acquired a 10% strategic interest in the company at a price of $2.39 a share.

Canadian property trust NorthWest has bought 10% of the company in an effort cut itself into any carve-up of the hospital operator’s property assets. NorthWest chairman and chief executive Paul Dalla Lana said it was an “unconventional situation” but the trust, which owns $3 billion worth of assets in Australia and New Zealand, wanted to ensure it had a “tactical seat at the table”. He stressed that NorthWest, which already partners with Healthscope in Frankston Private Hospital in Victoria, is built around working with the healthcare operators and adding value through investment.

The Healthscope board is yet to make a formal comment.

Global Market Digest

Global markets ended the session little changed overnight as energy stocks on Wall Street cut earlier losses after US President Donald Trump said the United States would quit the international Iran nuclear deal, confirming what many investors had expected.

Trump said the US would pull out of an agreement over Iran’s nuclear programme and reimpose sanctions on Tehran immediately, increasing geopolitical tensions. The news saw the US dollar continue to rise, while the price of oil was volatile as investors digested what the Iran move could mean for energy supplies. Elsewhere, Italian shares tumbled on the prospect for fresh elections that may boost the chances of a populist government taking power.

3 Things Markets Will be Watching this Week

1.  Corporate earnings season enters its final stages in the US this week, with around 80% of stocks having released profit results.
2.  The Reserve Bank of New Zealand is widely expected to keep interest rates on hold at 1.75% on Thursday.
3.   This week sees the release of the Australian Federal Budget on Tuesday.

Australia and New Zealand Market Movers is provided by Australasian Trading Management. ATM is an independent research house covering stock analysis across major markets including the ASX, NZX and US markets. We make our research easy to understand and concise, taking complex issues and simplifying them so that you can make informed and accurate decisions. We have no conflicts of interest and our only goal is to generate positive returns for our members. We run transparent model portfolios to track performance and invest where we see the most value, in companies of all sizes across all industries, and often in smaller companies.

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Categories: Australian Stocks, New Zealand Stocks

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