by BusinessDesk
The S&P/NZX 50 Index rose 18.56 points, or 0.2%, to 12,386.42. Within the index, 32 stocks rose and 18 rose.
A positive trading session in the United States over the weekend, where the S&P 500 rose 1.5%, gave the local market a positive lead this morning.
“Last week proved to be a rollercoaster ride for financial markets,” said BNZ interest rate strategist, Jason Wong.
Wong said investors’ risk appetite plummeted after “shockingly strong” US consumer price index data was released in the middle of the week before “recovering nicely” in the end.
A number of smaller stocks saw the largest gains on the local market, with Vista Group International jumping 5.7% to $2.22 as it bounced back from a bout of inflation-related selling.
Scales Corporation rose 3.2% to $4.53, Pushpay Holdings climbed 3.1% to $1.67, and stock market operator NZX was up 3% at $2.05.
The index may have made stronger gains were it not for A2 Milk Company sliding another 4.5% to $5.76 as it continues to lose favour with investors. The stock was trading near $20 per share this time last year and has lost about $10 billion in value.
Last week, the company announced the latest in a series of earnings downgrades. The milk marketing firm now expects annual sales of roughly $1.2b in the June year and has halved projected profit margins as it writes off excess inventory.
Milk powder supplier Synlait Milk declined 1% to $3.00 as investors tend to see the two companies’ fates as being linked.
Genesis Energy also fell 2.6% to $3.43 and Oceania Healthcare dropped 2.6% to $1.33 further weighing down the index.
Trustpower shares climbed marginally – 0.1% to $8.34 – despite reporting a sharp uptick in customer losses since the beginning of the year when the company announced it was contemplating the sale of its retail business.
The company declined to give guidance for the 2022 financial year or comment on capital management until decisions on the potential sale of the business were finalised.
Chorus sent the Commerce Commission a proposed maximum allowable revenue range of $720 million-to-$820m between 2022 and 2024, prompting shares to move up 1% to $6.31.
Precinct Properties wants to raise as much as $150m selling six-year green bonds to help pay for its $1.8b pipeline of energy-efficient buildings. Its shares fell 0.3% to $1.61.
The kiwi dollar was trading at 72.24 US cents at 3pm in Wellington, up from 71.77 cents yesterday.
The trade-weighted index was at 75.26 at 3pm, from 74.86 yesterday. The kiwi traded at 93.16 Australian cents from 92.92 cents, 78.98 yen from 78.67 yen, 59.54 euro cents from 59.40 cents, 51.29 British pence from 51.10 pence, and 4.6270 Chinese yuan from 4.6546 yuan.
| « NZX50 falls 2.8% this week as inflation rears its head | NZ shares rise as investors bet on earnings results » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved