MORNING REPORT As at 9:15 AM 14 November 2017

Web: www.equity.co.nz / E-mail: [email protected] / Tel: +64 (9)304 0145 / Address: Level 7, 12-26 Swanson Street, , NZ

Top News NZX Index Index Last Change NZ dollar dips below 69 US cents as risk appetite, commodity prices fall S&P/NZX All Index 8,648.30 2.87 ↑ 0.03% The dollar fell back below 69 US cents after measures of risk S&P/NZX 50 Index 7,976.42 2.20 ↓ 0.03% appetite and global commodity prices declined and optimism grew that US tax S&P/NZX Mid Cap Index 23,660.33 16.72 ↑ 0.07% reforms are progressing. S&P/NZX Small Cap 54,997.78 32.23 ↑ 0.06%

S&P/NZAX All Index 0.84% The Chicago Board Options Exchange Volatility Index (VIX), sometimes known 564.95 4.78 ↓ as Wall Street's fear gauge, fell 1.6% from its highest level in about three ASX Index weeks overnight while the CRB Index of 19 commonly traded Index Last Change commodities slipped about 0.1%. Prices of dairy products fell for ALL ORDINARIES 6,097.2 7.10 ↓ 0.12% the third straight auction on the GlobalDairyTrade auction last week. S&P/ASX 200 6,021.8 7.60 0.13% ↓ Meanwhile, US President Donald Trump tweeted overnight that the US was S&P/ASX SMALL ORD 2,677.0 3.80 ↑ 0.14% "getting close" on tax reform. S&P/ASX MIDCAP 50 6,634.6 13.7 ↑ 0.21% S&P/ASX 20 3,357.4 9.70 ↓ 0.29% General Electric slumps Foreign Markets Index Wall Street inched higher as concern about US tax reform plans and a drop in General Electric shares weighed on sentiment at the tail-end of a better-than- Last Change expected quarterly earnings season. S&P 500 2,586.16 3.86 ↑ 0.15% DJIA 23,453.99 31.78 ↑ 0.14% The Dow moved higher as gains in shares of McDonald’s and those of the Nasdaq 6,763.55 12.61 ↑ 0.19% Home Depot, recently up 1.3% and 1.2% respectively, outweighed slides in 0.24% shares of General Electric and those of Travelers Cos, recently down 5.4% and FTSE 100 7,415.18 17.81 ↓ 1.2% respectively. ALL ORDINARIES 6,097.20 7.10 ↓ 0.12% Nikkei 225 22,380.99 300.43 ↓ 1.32% GE shares slumped, sending the stock to its lowest level in more than five Hang Seng 29,182.18 61.26 ↑ 0.21% years, after the company axed its quarterly dividend by 50% as part of a plan Currencies (per NZ$ 1.00) to revamp its business. GE also downgraded its 2018 earnings outlook. Last Change Meanwhile, shares of Anheuser-Busch InBev closed 0.1% higher in Brussels AUD 0.9050 0.0006 ↓ 0.07% after the world's largest brewer said it appointed a new head of its North USD 0.6902 0.0030 ↓ 0.43% America business, its key market, to boost sales. CNY 0.39% 4.5840 0.0180 ↓ NZ shares mixed, A2 gains on growth while Xero falls EUR 0.5915 0.0031 ↓ 0.52% New Zealand shares were mixed, with A2 Milk rising on a positive CAD 0.8786 0.0010 ↓ 0.11% presentation to investors while Xero and SkyCity Entertainment Group GBP 0.5263 0.0002 ↓ 0.04% dropped. JPY 78.3740 0.2910 ↓ 0.37%

NZ Interest Rates A2 Milk was the best performer, up 3.9% to $7.70. The milk marketer signalled growth has continued into the current financial year at a Last Change UBS Investor Conference in today. NZ OCR 1.75 3-month Bank Bill 1.94 It outlined positive developments in its and New Zealand, China and 5-year Swap 2.71 other Asian, US and UK markets, although stopped short of providing detailed 10-year Swap 3.23 figures, noting it would give an update at its annual meeting of shareholders Commodities on Nov. 21. Last Change At the other end of the scale, Xero was the worst performer, dropping 4.2% to Spot Gold $US 1,278.89 3.54 ↑ 0.28% $30.74. The stock has now fallen 11% in three sessions since the company Spot Silver $US 17.04 0.21 ↑ 1.25% announced its plans to delist from the NZX in favour of the ASX. Oil(WTI) 56.74 0.57 ↓ 0.99% Disclaimer: The above information is provided on a best endeavours basis and Equity Investment Advisers Ltd does not accept any liability under any circumstances for errors or omissions. Parties should recheck the information before using it in any decision-making process. Acknowledgements: Equity Investment Advisers (EIA) sincerely expresses its gratitude to the following sources for the contribution of valuable information in the production of EIA morning reports: Yahoo New Zealand, ANZ securities, ASX, Nikkei Indexes, NZX, NYSE, NASDAQ, business desk.

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