Yovich & Co. Market Update
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Jarrod Goodall (FSP 198885) Yovich & Co. Market Update January 23rd 2017 NZX 50G All Ords Shanghai FTSE Dow NASDAQ NZDAUD NZDUSD OCR Previous Month 6881.22 5719.14 3103.64 7142.83 19762.60 5244.57 0.9623 0.6929 1.75% Week Close 7048.47 5709.70 3123.14 7198.44 19827.25 5283.94 0.9483 0.7168 1.75% Change 2.43% -0.17% 0.63% 0.78% 0.33% 3.20% -1.45% 3.45% 0.00% Market Themes The NZ Market eked out a gain for the past week of two points and extended its winning streak to five weeks. The best performing stocks locally were Arvida (up 4.62%), Infratil (up 3.91%) and Summerset (up 3.49%). Across the ditch the All Ordinaries index fell 1.16% with the financials starting to reverse some of their gains that they made in December. The Trump Pump has continued this year but lost steam in the past week as we headed into the inauguration and Trump taking control of the White House. The UK market had a tough week as a rally in the pound saw traders take profits, despite the fall in the market, Financials remained in favour. Both in the UK and the broader European area, Banks are seen as a possible winner if markets are de-regulated. The USD has traded to its highest level since November as traders look towards Trump with expectations of stimulatory spending, inflation and interest rate rises in the world’s largest economy. Investment News Preferred NZ Shares With the New Zealand market consolidating on a very strong first half of 2016, many stocks are still sitting at elevated levels. It is important to identify companies that are going to provide consistent dividends and long term growth in sectors that have strong fundamentals. Below are our top picks in the current market: 12 Forecasted Forecasted Month Current Code Stock Sector Recommendation Gross Div 12 Month Target Price Yield Gain Price TGH.nz Tegel Agriculture & Fishing Outperform $ 2.00 7.60% $ 1.31 60.27% NZR.nz New Zealand Refining Company Energy Neutral $ 3.55 12.80% $ 2.67 45.76% CEN.nz Contact Energy Limited Utilities Outperform $ 6.26 6.50% $ 4.93 33.48% PGW.nz PGG Wrightson Limited Agriculture & Fishing Outperform $ 0.65 10.30% $ 0.53 32.94% MEL.nz Meridian Energy Limited Utilities Neutral $ 3.28 9.50% $ 2.72 30.09% MVN.nz Methven Limited Building Products Outperform $ 1.50 10.10% $ 1.28 27.29% SML.nz Synlait Milk Limited Agriculture & Fishing Outperform $ 3.80 6.00% $ 3.19 25.12% IFT.nz Infratil Limited Oil & Gas Outperform $ 3.45 7.60% $ 2.94 24.95% MPG.nz Metro Performance Glass Limited Construction & Engineering Neutral $ 2.20 7.40% $ 1.90 23.19% RYM.nz Ryman Healthcare Limited Health Care Outperform $ 10.20 2.40% $ 8.45 23.11% STU.nz Steel & Tube Holdings Limited Construction & Engineering Neutral $ 2.65 12.90% $ 2.43 21.95% ARG.nz Argosy Property Limited Real Estate Outperform $ 1.13 9.10% $ 1.02 20.43% THL.nz Tourism Holdings Transport Outperform $ 4.20 7.80% $ 3.82 17.75% NZX.nz NZX Limited Diversified Financials Outperform $ 1.12 8.20% $ 1.06 13.86% FPH.nz Fisher & Paykel Healthcare Health Care Neutral $ 9.70 3.90% $ 8.92 12.64% HBL.nz Heartland Bank Limited Banks Neutral $ 1.59 8.70% $ 1.53 12.62% GMT.nz Goodman Property Trust Real Estate Neutral $ 1.29 8.00% $ 1.25 11.61% ARV.nz Arvida Group Limited Health Care Neutral $ 1.42 5.00% $ 1.36 9.41% Disclaimer: This publication has been prepared for your general information. While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken for any errors or omissions. This publication does not constitute financial or insurance product advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. No part of this publication may be reproduced without prior written permission from our company. Disclosure statements relating to the financial advisers associated with this newsletter are available on request and free of charge. .