21 October 2021

Welcome to both new and old readers of Stock Take. It’s time again for a new issue of our share market news update.

Market Overview

Two weeks ago, the NZ Reserve Bank raised interest rates for the first time in 7 years. Higher interest rates mean borrowing costs for companies go up, while their dividends look relatively less attractive compared to safer options like bank term deposits.

Right on cue, the NZX50 Gross Index (gold line), the main measure of the overall stock market, has refused to follow other markets up as investors remain nervous about the prospect of further rate rises. Meanwhile, the US market (black line) and Australian market (blue line) are tracking up steadily.

Australia, in particular, is benefiting from a renewed interest in uranium mining as many European countries now look at resurrecting some of their nuclear power plants in the face of energy shortages, and investors should seriously consider an investment in this sector.

Tip of the Week

This week’s tip of the week is for a company engaged in the research, development and commercialisation of organic light emitting diode technologies. The company’s share price recently hit its 52 week low point, but we expect a recovery in its share price due to their strong forecast earnings growth rate.

See the tip here.

Top Tips

Energy and gas (or the lack of it, in some countries) is a hot topic that we here at Stockfox are keeping our eye on. See the results of our best performing energy and utility tips from the last three months.

See the performance of all Stockfox 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.

Did You Know

Did you know we’ve updated the app so you can now link your Stockfox account to your preferred brokerage? This means when you click on the ‘buy’ or ‘sell’ buttons, you’ll automatically be directed to your broker’s website for a seamless connection between receiving our advice and acting on it.

Just go to your settings and to the ‘linked broker account’ button, where you can then choose which broker you want to link to for New Zealand, Australia and United States tips.

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