NZ House Prices Keep Falling

Author

Sophie Wood
July 05, 2023

Good Morning,

House prices in New Zealand fell dramatically in June, Bitcoin miners have been selling, manuka honey producer Comvita buys HoneyWorld Singapore, China reduces exports of materials used in electric vehicle production and computer chips, and trouble may be coming toward Twitter…

Let's jump in.

Before The Bell

Markets

  • The S&P/NZX 50 Index continued to track upwards following the afternoon announcement and closed at 11,980.33, gaining 63.46 points or 0.53% after reaching an intraday low of 11,875.56. (GR)

  • New Zealand house prices fell by the most in eight months in June, showing the market has yet to find a floor even as interest rates reach their peak. (BBG)

  • Economists still expect at least one more rate rise after the Reserve Bank of Australia kept the cash rate on hold at 4.1 per cent as it grapples with whether it has done enough to tame inflation. (AFR)

  • Australia’s sharemarket climbed for a third straight session, after real estate and financial stocks jumped on the Reserve Bank’s decision to leave interest rates on hold for a second time in 14 meetings. (AFR)

  • Bitcoin miners, many of whom have traditionally held onto the cryptocurrency after creating the digital assets, have been selling the tokens during the current rise in prices. (BBG)

  • Investors flocked to Sri Lanka and Pakistan’s markets after the embattled nations crossed major hurdles to revive their economies. (BBG)

Earnings and Data

  • Manuka honey producer Comvita was again busy on the corporate activity front. Comvita increased 16c or 5.26% to $3.20 after telling the market it has bought HoneyWorld Singapore for $10.36m. Comvita’s share price has risen nearly 10% in two trading days. (GR)

  • Retirement village operators Summerset Group was up 12c to $9.72, Oceania Healthcare was down 2c or 2.63% to 74c, and Arvida Group also slipped 2c to $1.23. Ryman Healthcare continued its steady recovery, gaining 8c to $6.75 and increasing 33% so far this year after hitting a low of $4.93. (GR)

News Summary

  • Companies caught out by China's decision to restrict exports of some metals widely used in semiconductors and electric vehicles were racing to secure supplies on Tuesday as some industry suppliers worried that curbs on rare earth exports could follow. (RT)

  • Temperatures are expected to soar across large parts of the world after the El Nino weather pattern emerged in the tropical Pacific for the first time in seven years, the World Meteorological Organization said on Tuesday. (RT)

  • Australia's fourth largest pension fund suspended new work with PwC Australia on Tuesday, the latest in a string of funds to pause work with the accounting firm over a scandal which first surfaced in January over the misuse of government tax plans. (RT)

  • U.S. automaker Tesla and its chief Chinese rival BYD achieved record deliveries of their China-made vehicles in the second-quarter, China Passenger Car Association (CPCA) data showed, as a fight for market share heats up. (RT)

  • China's appointment of financial technocrat Pan Gongsheng to a top political post at the central bank points to growing concerns within the country's leadership over systemic risks in its sprawling financial sector, policy insiders and analysts said. (RT)

  • Italy has frozen Russian oligarchs' assets valued at around 2 billion euros ($2.5 billion) following the invasion of Ukraine last year, the country's central bank said on Tuesday. (RT)

  • China has announced export restrictions on some gallium and germanium products, metals used in computer chips and other products, citing national security interests. (RT)

  • Credit Suisse’s private bankers are being told to dust off their resumes ahead of the selection of new managers following the takeover by UBS Group AG. (BBG)

  • Charges laid in Singapore against PGG Wrightson chair Lee Joo Hai came as a surprise in New Zealand, but they follow one of the country’s biggest corporate scandals. (NBR)

  • Facebook owner Meta is launching its new app to rival Twitter and says it will go live on Thursday. (BBC)

Deal Flow

Investments / M&A

  • Pacific Equity Partners is considering a tilt at New Zealand-listed engineering business Scott Technology, which is 53 per cent owned by Brazilian meat processor JBS and has Macquarie Capital running a strategic review. (AFR)

  • New Zealand edtech Kami, whose classroom technology products are used by more than 35 million users across the world, is the next technology business headed towards the dealmaking circuit. (AFR)

  • BYD Co. will invest 3 billion reais ($624 million) in Brazil to build its first electric-car plant outside Asia as the Chinese giant seeks to extend its geographical reach amid a global surge in sales. (BBG)

  • Czech billionaire Daniel Kretinsky increased the size of his proposed equity investment in Casino Guichard-Perrachon SA as he competes with a trio of French business executives to take control of the debt-laden French supermarket operator. (BBG)

  • Alibaba Group Holding Ltd. is exploring options for its video entertainment assets, according to people familiar with the matter, as the Chinese tech giant wades deeper into its plan to revamp its structure. (BBG)

  • Singapore payments company Nium Pte aims to break even in time for a US initial public offering within two years, a positive signal for Southeast Asia’s struggling startup ecosystem. (BBG)

  • Consumer health giant Haleon Plc is exploring a potential divestment of some smoking cessation products as it seeks to offload non-core businesses, people familiar with the matter said. (BBG)

VC & Fundraising

  • Dragonfly Biosciences, the UK-based maker of cannabidiol-based supplements and lotions, is locked-and-loaded for an initial public offering and ASX listing next month. (AFR)

Daily Picks

  • Why is Twitter limiting how many tweets you can see? Read more here.

  • Britomart McDonald's fight led to Dimetrius Pairama murder investigation. See more in this article.

Job Board

New Zealand

  • ASB rural banking graduate - Apply here

  • Waterman Capital investment analyst - Apply here

Australia

  • Citadel Securities graduate and intern roles - Apply here

  • Goldman Sachs Investment Banking Intern - Apply here

  • IMC graduate and intern roles - Apply here

  • Jarden

    • Graduate role - Apply here

    • Summer internships - Apply here

  • Macquarie graduate roles - Apply here

  • Optiver

    • Graduate role - Apply here

    • Internships - Apply here

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