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

NZ's Financial Adviser News Centre

GR Logo close ad
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: Tuesday, October 19th, 7:48PM

Investments

rss
The Markets

GameStop chaos weighing on equity market

The New Zealand share market had a slow start to February, with investors nervous about fallout from the GameStop drama.

Monday, February 1st 2021, 7:09PM

by BusinessDesk

 

The S&P/NZX 50 Index fell 30.04 points, or 0.2 percent, to 13,097.25. Within the index, 23 stocks fell, 20 rose and seven were unchanged. Turnover was just $90.5 million as a third of the country was off work for Auckland Anniversary Day.

Key indices in the United States fell about 2 percent on Friday night as the fallout from the GameStop short squeeze continued to unsettle investors who were already wary of record high prices.

BNZ market strategist Jason Wong said investors may be nervous that the wild trading could trigger a systemic event or further selling and reducing their equity exposure.

NZ’s index fell as low as 1 percent this morning but rallied during the afternoon after the Australian market opened and US futures trended upwards.

Peter McIntyre, an investment adviser at Craigs Investment Partners, said investors were being more cautious and holding more cash in their portfolios as an insurance buffer.

“There is enough swirling round the pot to keep everyone on their toes, but in saying that interest rates are low, and the bond market is trying to price in some inflation,” he said.

Fisher & Paykel Healthcare led the market lower as it fell 3.3 percent to $33.51, albeit on a light volume of just 325,000 shares.

Pacific Edge slipped 2.8 percent to $1.05 and Sky Network Television fell 2.4 percent to 16 cents, both on small volumes.

Pushpay Holdings had the day’s biggest gain, up 4.2 percent at $1.72, followed by Contact Energy which climbed 3.4 percent to $8.45.

While people were fixated on GameStop, the story moving the index last week was the correction in renewable electricity prices. Contact and Meridian Energy both fell more than 11 percent last week, as their prices deflated from an index fund-driven surge earlier in the month.

Meridian Energy recovered 0.4 percent to $7.18 today. Both electricity generators may have received a boost from the Climate Change Commission’s draft carbon budget which called for further electrification of industrial processes.

Cinema software company Vista Group International has jumped almost 7 percent since last Thursday, as it appears to be benefitting from the GameStop traders buying shares in the world’s largest cinema chain.

AMC Entertainment Holdings has also benefited from the Reddit speculation frenzy and is considering taking advantage of the flash rally to raise more capital.

Vista shares rose 3.4 percent to $1.85, today. McIntyre said: “If that sector rises it typically filters throughout the world, it’s a bit like water,” said McIntyre. “It’s a vaccine recovery story as well.”

The yield on NZ government bond and swap rates crept higher, now at 1.155 percent and 1.1850 percent, as the Reserve Bank announced it would purchase just $570 million of government bonds, down from $650 million last week.

The kiwi dollar was trading 71.99 US cents at 5pm in Wellington, up from 71.56 cents yesterday.

The trade-weighted index was at 74.73 at 5pm, from 71.56 on Friday. The kiwi traded at 94.07 Australian cents from 93.58 cents, 75.36 yen from 74.75 yen, 59.33 euro cents from 59.15 cents, 52.40 British pence from 52.22 pence, and 4.6508 Chinese yuan from 4.6222 yuan.

Tags: Market Close

« NZ shares bounce back from sell-offEquities dip as interest rates creep higher »

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
Subscribe Now

AM Update - Your morning business news update

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 ▲2.99 ▲3.45 ▲3.69
ANZ 4.59 3.39 3.85 4.09
ANZ Blueprint to Build 1.68 - - -
ANZ Special - 2.79 3.25 3.49
ASB Back My Build ▲2.04 - - -
ASB Bank 4.45 ▲2.99 ▲3.45 ▲3.69
Basecorp Finance 5.49 - - -
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - ▲2.99 ▲3.45 ▲3.69
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 4.70 ▲3.59 ▲4.05 ▲4.29
BNZ - TotalMoney 4.70 - - -
CFML Loans ▲5.15 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 4.99 3.80 3.90 -
Lender Flt 1yr 2yr 3yr
HSBC Premier 4.49 2.19 2.45 2.69
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 3.69 2.45 2.85 3.15
Kainga Ora 4.43 2.88 3.28 3.59
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank ▲4.00 3.80 ▲4.15 ▲4.50
Kiwibank - Offset ▲4.00 - - -
Kiwibank Special 3.75 2.95 ▲3.30 ▲3.65
Liberty 5.69 - - -
Nelson Building Society 4.95 2.99 3.24 -
Lender Flt 1yr 2yr 3yr
Pepper Essential 4.79 - - -
Resimac 3.39 2.98 2.79 3.29
SBS Bank 4.54 3.05 3.45 3.75
SBS Bank Special - 2.55 2.95 3.25
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - 2.65 - -
The Co-operative Bank - Owner Occ ▲4.55 2.79 3.25 3.49
The Co-operative Bank - Standard ▲4.55 3.59 4.05 4.29
TSB Bank 5.34 ▲3.54 ▲4.00 ▲4.24
TSB Special 4.54 ▲2.74 ▲3.20 ▲3.44
Wairarapa Building Society 4.99 3.55 3.49 -
Lender Flt 1yr 2yr 3yr
Westpac 4.84 ▲3.59 ▲4.05 ▲4.29
Westpac - Offset 4.84 - - -
Westpac Special - ▲2.99 ▲3.45 ▲3.69
Median 4.57 2.99 3.45 3.65

Last updated: 18 October 2021 9:15am

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