by BusinessDesk
In local currency terms, the index fell 3.8% after the NZ dollar gained 2.1% against the trade-weighted index.
The S&P/NZX 50 index fell 28.3 points, or 0.24%, to 11,636.99. Turnover was a light $80.3 million.
We’re finally hitting the last stretch of the summer holidays for most people – and with it hopefully edging closer to NZ’s domestic market becoming a bit more exciting.
Forsyth Barr analysts revealed today that they’ve kept their outperform rating on Summerset Group, but slashed their 12-month target price by 7.1% after fourth-quarter sales data from the retirement village developer.
“The glass-half-empty takeaway is that sales are taking longer to settle and that unit prices have plateaued while the glass-half-full approach notes that demand is still strong and prices are holding up despite the largest nominal decline in NZ residential house prices for 40 years,” the analysts said.
Summerset fell 1% to $9.13 by early evening. Ryman Healthcare also dipped, down 0.5% to $5.48.
Radius Residential Care, however, jumped 5.4% to 29.5 cents.
Cinema software provider Vista Group was down 5.8% to $1.47, one of the bigger falls on the index today. Move Logistics also fell, by 3.6% to $1.07, and energy retailer Meridian Energy edged down 2% to $5.27.
Amongst the other stocks that fell today, general insurer Tower fell 2% to 72 cents, Pacific Edge edged down 1.9% to 52 cents and Scales Corp fell 2.5% to $3.85.
Stocks that rose were energy retailer Vector, which was up 2.4% to $4.27, and fleet company Eroad, which rose 2.2% to 93 cents.
Logistics company Mainfreight also edged up, by 1.4% to $67.45.
CMC Markets analyst Tina Teng said in a note this morning that Fed chair Jerome Powell had offered “no clues” for the future rate hike path at a meeting in Stockholm.
She said many investors believe that inflation will cool further, which in turn will encourage the Fed to hit its peak on a rate hike cycle much earlier than the central bank’s current projection.
“The upcoming US CPI data tends to be a key to steering the further markets’ movements, where a further slowdown in inflation may continue to support the current market rally,” she said.
Today, the NZ dollar was trading at 63.72 US cents at 3pm in Wellington, barely moving from its 63.70 cents spot yesterday.
Currency exchange OFX said in a note this morning that the kiwi dollar had been unable to maintain its 64-cent grip thanks to the key US inflation update that came out yesterday.
“Having enjoyed a largely positive start to the new year, consolidating gains won through December, investors appear content in moderating further upside ahead of key inflation markers,” OFX wrote.
“Renewed optimism surrounding China’s economic re-opening and a broader correction in US rate and yield expectations should continue to lend support to the NZD through the near term.”
| « NZ market still in out-of-office territory | Elevated consenting numbers a nice surprise for market » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved