by BusinessDesk
The S&P/NZX 50 Index rose 73.05 points, or 0.6%, to 12,763.4. Turnover was $174 million.
NZ was caught in a global wave of pessimism on Friday after offshore investors sold risk assets on Thursday night due to concerns about the covid-19 delta variant slowing economic growth.
That mood dissipated overnight Friday as markets rallied, helped by the People’s Bank of China cutting its reserve ratio requirements – a move that will free up a trillion yuan for Chinese banks to lend into the economy.
Meanwhile, the RBNZ is holding its monetary policy review on Wednesday, with analysts widely expecting the bank to leave all settings unchanged. But with the economy heating up fast, the official cash rate will have to move up eventually.
Economists at the BNZ bank are predicting the consumer price index, being released this Friday, will climb 0.7% in the latest quarter, which would bring the annual rate to 2.7%.
Renewable electricity generator Meridian Energy led the market higher, climbing 3.5% to $5.40. Yields on government bonds continued to drift lower today, providing support for reliable dividend paying stocks.
Software stocks performed well: Serko climbed 2.7% to $7.36, Pushpay Holdings rose 2.4% to $1.70, and Vista Group International was up 2.2% at $2.30 after Hollywood blockbuster Black Widow debuted with a record post-covid box office take.
Summerset's June quarter sales more than doubled from the same quarter last year, which was impacted by the covid-19 pandemic. Its shares rose 1.9% to $13.60 today.
A2 Milk Company moved marginally higher, up 0.3% to $7.62, as the company reorganises its Asia Pacific division into three business units.
Hallenstein Glasson Holdings dropped 1.2% to $7.35 after the fashion retailer told investors it had to close 13 Glassons stores in the Sydney area over the weekend.
The stores will remain closed until the covid lockdown is lifted which is currently planned for July 16 but could be extended.
Kathmandu Holdings, which also trades in Australia, fell 1.3% to $1.48, and Tourism Holdings dropped 4.1% to $2.35 as the covid outbreak in Australia continues to worsen.
The kiwi dollar was trading at 69.88 US cents at 5pm in Wellington, up from 69.26 cents on Friday.
The trade-weighted index was at 73.90 at 5pm, from 73.46 on Friday. The kiwi traded at 93.50 Australian cents from 93.43, traded at 76.95 yen from 76.05 yen, 58.87 euro cents from 58.50 cents, 50.27 British pence from 50.28 pence, and 4.5259 Chinese yuan from 4.4939 yuan.
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