tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, July 11th, 12:05PM

Investments

rss
The Markets

NZ shares fall as world waits on the Fed

New Zealand shares dipped, taking a lead from Wall Street as investors began taking profit on recent gains and before the US Federal Reserve makes its first economic forecasts since the pandemic struck.

Wednesday, June 10th 2020, 6:02PM

by BusinessDesk

The S&P/NZX 50 Index fell 38.17 points, or 0.3 percent, to 11,260.52. Within the index, 10 stocks rose, 31 fell, and nine were unchanged. Turnover was $188 million.

Wall Street’s upwards momentum subsided ahead of the Federal Reserve meeting. The Fed had shared a favourable outlook in December, when the coronavirus was largely unknown, but is now expected to paint a more dire picture at 6am NZT tomorrow.

Mark Lister, head of private wealth research at Craigs Investment Partners, said the meeting of the world’s biggest central bank was likely to have a neutral impact on equity markets

“The Fed is already throwing the kitchen sink at the issues,” he said. “It is hard to see them doing a whole lot more than they already are, but still people will be analysing every word and phrase.”

Share markets, fuelled by near-zero interest rates and massive government stimulus packages, have been steadily climbing in recent days but came off the boil overnight.

“I think it is nothing more scientific than we’ve had an outstanding run and it had to turn around at some point,” Lister said. 

The S&P 500 fell 0.8 percent and the Dow Jones Industrial Average 1.1 percent. The Nasdaq climbed a further 0.3 percent after hitting a record the day before.

Asian markets were mixed, Australia’s S&P 200 rose 0.4 percent, Hong Kong’s Hang Seng was up 0.1 percent, but markets on mainland China fell half a percent and Japan’s Topix was down 0.2 percent.

The local benchmark started the week with a bang, jumping more than 3 percent on Monday and turning positive year to date. But it has walked back those gains and is now up just 1 percent this week.

Kathmandu, which leapt more than 11 percent on Monday, declined 4.4 percent to $1.31.

Vista Group International fell 4.7 percent to $1.82, New Zealand Refining Company dropped 4.2 percent to 91 cents, Air New Zealand fell 4.1 percent to $1.86 and SkyCity Entertainment Group declined 2.9 percent to $3.05.  

Lister said stocks which had staged an “impressive rebound” were now seeing some profit taking.

Skellerup Holdings fell 4.7 percent to $2.02, leading the market lower but with just 43,000 shares traded.

Infratil dropped 4 percent to $4.97 after raising $250 million through an institutional placement priced at $4.76 per share to position the infrastructure investment firm to pursue its growth agenda and take advantage of any new opportunities.

Lister said there was likely an acquisition opportunity on the horizon.

“As a shareholder you don’t want that money just sitting there - you want them to be putting that capital to work,” he said.

Z Energy declined 1.3 percent to $3.11. Fuel volumes for the week ended June 7 fell 1 percent. The retailer said volume in the prior week had been elevated by a 10-cent discount offer going into the Queen's Birthday holiday weekend. Volumes for the week were down 30 percent compared to pre-lockdown levels.

Fletcher Building said it has negotiated easier covenants with its bankers through to the end of 2021 in case they become necessary as the company navigates through the coronavirus crisis. If it does call on the easier covenants, Fletcher has agreed to forego dividends until it returns to its normal covenants. Its share price edged 0.3 percent lower to $4.03.

Pushpay Holdings posted the day’s biggest gain, up 3.3 percent at $7.23. it was followed by logistics company Freightways which rose 2.7 percent to $7.30.

Tags: Market Close

« Strong kiwi weighs on exporters pushing sharemarket downCold water poured on V-shaped recovery »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Harking back to the old days
    “Tactical move by CIGNA and looks like they have a lot of bench strength now in sales, underwriting and product / pricing...”
    1 day ago by hitting rock
  • Greens want ACC extended to cover sickness
    “Never happen. The Greens are such an aspirational bunch. Must all the weed. They 'want' all sorts of unlikely things...”
    1 day ago by All hat no cattle
  • Harking back to the old days
    “Really positive news. NZ has been blessed by many successful leaders and it is good that their skills can skill be utilised...”
    1 day ago by Francis L
  • Harking back to the old days
    “I dare say Cigna just got that extra grunt it's been looking for....”
    1 day ago by Matron
  • Greens want ACC extended to cover sickness
    “The Greens have no idea The purpose of the Woodhouse report was to remove the "at fault" component of accidents Sickness...”
    2 days ago by LNF
Subscribe Now

AM Update - Your morning business news update

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.19 3.19 3.49
AIA Special - 2.69 2.69 2.99
ANZ 4.44 3.15 3.25 ▼3.39
ANZ Special - ▼2.55 ▼2.69 ▼2.79
ASB Bank 4.45 3.19 3.19 3.49
ASB Bank Special - 2.69 2.69 2.99
Bluestone 4.44 4.44 4.44 4.44
BNZ - Classic - 2.65 2.69 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.25 3.29 3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union South 5.65 4.75 4.75 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.60 2.65 2.80
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 3.99 2.58 2.68 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.40 3.54 4.00
Kiwibank - Capped - - - -
Kiwibank - Offset - - - -
Kiwibank Special 3.40 2.65 2.79 3.25
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.29 3.19 3.49
SBS Bank Special - 2.79 2.69 2.99
The Co-operative Bank - Owner Occ 4.40 ▼2.69 ▼2.75 ▼2.99
The Co-operative Bank - Standard 4.40 ▼3.19 ▼3.25 ▼3.49
TSB Bank 5.34 ▼3.35 3.49 3.79
TSB Special 4.54 ▼2.55 2.69 2.99
Wairarapa Building Society 4.99 3.75 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.55 2.69 2.79
Median 4.55 3.19 3.22 3.39

Last updated: 10 July 2020 9:02am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com