18 March 2022

Welcome to another issue of Stock Take. Read on to find out what’s been happening lately in the share markets.

Market Overview

The graph below compares the Dow Jones Industrial Average (DJIA) (black line) to the Shanghai Stock Exchange Composite Index (SSE) (gold line). Despite the Federal Reserve saying it would be making multiple interest rate rises this year, both the DJIA and SSE indexes are up 1.55% and 3.48% respectively.

This is due to a Chinese state media announcement. China’s top financial policy body vowed to ensure stability in capital markets, support overseas stock listings, resolve risks around property developers and complete the crackdown on big tech.

This stopped the panic selling that has been happening in China, as investors now have slightly more confidence in the markets. Huge gains on dual listed stocks have also lifted the DJIA.

Tip of the Week

This week’s tip of the week is for a NASDAQ-listed provider of customised transportation and logistics solutions. The company has been reducing its debt and is well placed to benefit from increased consumer activity.

See the tip here.

We’ve issued four tips so far this week. Disruption caused by the Russia-Ukraine conflict has not negatively affected two of them, Chorus (NZX: CNU) and GrainCorp (ASX: GNC), but political constraints do appear to have impacted Alibaba Group (NYSE: BABA) more than expected. We’ve tidied up the books by issuing a Sell: Take Profit recommendation for Livestock Improvement Corp (NZX: LIC) at a modest gain of 3.45% after 3 weeks to look for more dynamic opportunities.

Top Tips

Here are two of our best performing digital service companies over the past three months, plus one where we didn’t get it quite right but issued a stop loss recommendation after 2 weeks to help investors mitigate the impact of the price reduction.

See the performance of all tips here.

NB: These are examples of just some of Stockfox trading recommendations. They are not a reflection of the success of all Stockfox tips, nor are they necessarily an indication of the success of any future Stockfox tips. If you act on our advice, there is no guarantee as to the repayment of your investment or any particular rate of return.