Home / Daily Market Update / Market weakens, NAB hits three year high, Vicinity centres ‘positive signs’

Market weakens, NAB hits three year high, Vicinity centres ‘positive signs’
 
The S&P/ASX200 (ASX: XJO) weakened throughout the day, ultimately finished 0.2 per cent lower as both the energy and materials sector continued to fall.
 
Iron ore prices remain under pressure due to well publicised steel mill shutdowns which sent BHP (ASX: BHP) down 2.5 per cent and Fortescue (ASX: FMG) another 2 per cent.
 
On the other hand, the lithium sector weakened as the Prime Minister’s underwhelming EV policy was received quite poorly, Pilbara Minerals (ASX: PLS) fell 3.8 per cent.
 
The financial sector was the major standout, with shares in National Australia Bank (ASX: NAB) nearly topping the market after jumping 4.1 per cent.
 
The rally sent the price to a three year high with analysts clearly impressed with the bank’s cost control, ability to service and issue loans efficiently and ultimately their above industry average lending growth.
 
Not unexpectedly, factory-gate prices in China increased at the fastest rate in close to 30 years, up 13.5 per cent on 2020’s levels. This was above the 12.5 per cent expected but evidence of the slow restart of global supply chains.
 
Shopping centres recovering, Shaver Shop’s online pivot
 
Shopping centre owner Vicinity Centres (ASX: VCX) has flagged positive signs at their centres following the reopening of the NSW and Victorian assets.
 
Shares fell 2.5 per cent after management confirmed that centre visitation across the country was 55 per cent of 2019 levels before the end of VIC and NSW lockdowns.
 
Visitation increased quickly after restrictions were eased with NSW at 82 per cent and Victoria 93 per cent in the prior week.
 
The timing couldn’t be better with total retail sales down 25 per cent year on yield, but positive excluding the lockdown states where they grew by 7.1 per cent.
 
Occupancy remains strong at 98.1 per cent with cash rent collections improving to 74 per cent. The company refused to provide guidance but is confident of a quick turnaround.
 
Shaver Shop (ASX: SSV) shares gained 3.9 per cent after the company reported a 58 per cent jump in online sales and a 7 per cent increase in like for like sales compared to 2020 levels.
 
The group reported that online sales are now over 50 per cent of their total with the company a clear beneficiary of the forced move to e-commerce.
 
US falls on 6 per cent inflation, Rivian gains a third on listing, gold consolidates
 
The technology sector lead the losses overnight, with the Nasdaq falling 1.7 per cent after another high inflation figure spooked markets.
 
The S&P500 and Dow Jones outperformed falling 0.8 and 0.6 per cent respectively despite another 3 per cent fall in the oil price sending the energy sector lower.
 
It was all about inflation once again as the economy seeks to deal with the flow on effects of the pandemic.
 
Consumer prices rose 0.9 per cent in October for a 6.2 per cent annual jump, the fastest rate in several decades.
 
Once again, the biggest contributors were food costs, up 5.3 per cent, fuel, up 6.1 per cent and used cars, up 2.5 per cent most of which are being hit by higher transport costs and other supply chain issues.
 
Core inflation was slightly muted, gaining 4.2 per for the year with all eyes now on the Federal Reserve.
 
Shares in electric vehicle maker Rivian Automotive (NASDAQ: RIVN) gained 29  per cent on their first day of trade.
 
The company has the support of Amazon, Ford and T Rowe Price as key backers as they seek to deliver all-electric SUV’s.
 
The gold price is making new highs again, finishing a full per cent higher on the threat of inflation.