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Australia (ASX) & New Zealand (NZX) Market Movers – 10th July. Stock in Focus: Macquarie

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

The Australian share market continued its positive trend yesterday (ASX 200 index +0.22%) as markets across Asia shrugged off trade tariff concerns. Shares in mining giant BHP Billiton advanced as BP emerged as the front-runner to buy BHP’s onshore oil and gas operations in the United States, in an offer reportedly worth $13.45 billion ($US10 billion). Previous bids from BP, Chevron and Royal Dutch Shell had valued the assets at $12.1 billion. On the flipside, Domino’s Pizza shares continued to fall further after it was downgraded by several broker analyst’s week. Adding to its woes, two of the company’s New Zealand franchises were fined on Monday for “serious” breaches of employment law.

The New Zealand market was lower on Monday (NZX 50 index -0.25%) as the market retraced from Friday’s fresh all-time high, bucking the positive trend across Asian markets. Sky Network Television and Tourism Holdings were lower, while Pushpay shares gained. Gentrack Group dropped after coming out of a trading halt as it raised about $52.4 million in a discounted stock offer to institutional investors as part of a two-stage share sale aimed at raising funds to repay debt used for a recent flurry of acquisitions. Gentrack achieved a clearing price of $6.69 per share, a premium of 50 cents per share over the offer price of $6.19, and a discount of 19 cents per share to the theoretical ex-rights price of $6.88.

Global markets were higher overnight as shares on Wall Street rose with banks and industrial stocks driving a third day of gains as investors looked ahead to another strong quarterly earnings season, setting aside trade concerns for now.

In about a weeks’ time the US quarterly earnings season will be underway with the major banks kicking off reporting season. During earnings season the focus of investors generally shifts away from other issues and back towards quarterly company profit announcements.

Despite escalating trade tariffs remaining a threat for markets, Asian markets also started the week on a high. Shares in China led the broad-based regional recovery as the Shanghai Composite index recovered a week’s worth of losses.

Stock in Focus: Macquarie (MQG:AX)

Shares in Macquarie continue to defy the negative sentiment facing the broader Australian financial sector, with its shares trading close to all-time highs.

There have been reports that bankers at Macquarie are set to offer US$800 million (A$1 billion) to buy a majority stake in U.S. group T5 Data Centres. T5 Data Centres reportedly runs data centres in New York, Dallas, LA, Chicago, Portland, Atlanta and Ireland among other places, with over 11 million square feet of data centre space to help large companies store their digital footprints online. We are positive on the data sector given we believe the explosion of data will be a powerful multi-year investment theme, and it is encouraging to see Macquarie is looking to enter into the space.

3 Things Markets Will be Watching this Week

1.   Tit for tat tariffs, particularly as retaliatory measures between the US and China continue to sway investor sentiment.

2.    A number of US Federal Reserve members make speeches late in the week.

3.    Closely watched US inflation data is released at the end of the week.

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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