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, March 19th, 6:25PM

Investments

rss
The Markets

Shares drift sideways as RBNZ bond buying ends

New Zealand shares shuffled sideways in a directionless trading session, while bond yields moved marginally higher as the Reserve Bank ended its buying programme.

Thursday, July 22nd 2021, 7:02PM

by BusinessDesk

The S&P/NZX 50 Index climbed 11.7 points, or 0.1%, to 12,720.84. Turnover was $273 million.

US share markets moved back towards their all-time highs overnight, with very low cash and bond yields still providing support for the stock market.

The local bond market was itself relatively unfazed as the RBNZ’s large-scale asset purchases ended not with a bang but a whimper.

A final $90m of government bonds was bought today, compared to last year when the central bank was a buying $1b a week as it printed money to fight the pandemic downturn.

“Traders will be pleased that the RBNZ’s bond buying programme has now finished, which will allow for more natural market conditions, liquidity, better price discovery and less volatility,” said BNZ’s Jason Wong.

The yield on a 10-year government bond moved up a few basis points, reaching 1.6% today, but still lower than almost 2% yields seen just last month.

Brad Gordon, an investment adviser at Hobson Wealth Partners, said equity investors would be pleased to see market rates stay low – even as bank economists call for interest rate hikes.

Stocks offering a dividend yield were remaining attractive to investors with interest rates still exceptionally low, he said.

Goodman Property Trust led the market higher climbing 2.3% to $2.45.

Electricity generators and retailers also made gains, Mercury NZ rose 2.2% to $6.84, Meridian Energy was up 0.4% at $5.35, and Contact Energy advanced 0.4% to $8.26.

The latter two firms today floated a proposal for a green hydrogen plant to be built to replace of the Tiwai Point aluminium smelter that currently buys one-seventh of all electricity produced in NZ.

Current smelter owner Rio Tinto has repeatedly threatened to leave the market during electricity price negotiations, so the two generators having a viable alternative will give them leverage when the current contract expires in 2024.

Gordon said the Meridian and Contact’s stock price gain today was unlikely to be linked to the hypothetical hydrogen plant and more due to the relative strength of the sector.

“Fundamentally the gen-tailers are very well positioned with a strong demand profile,” he told BusinessDesk.

Forsyth Barr analysts began equity research coverage of Serko, starting the stock with a neutral rating and a target price of $7.20. 

“We are attracted to Serko’s highly ambitious and credible management team, dominance in Australasia,” they wrote.

“But note the competitive market structure in the US, historic difficulty in capturing the small-medium-enterprise market in Europe and uncertainty around pricing power in Australasia”.

Despite the cautious tone from the analysts, Serko shares climbed 0.5% to $7.50 today.

Livestock Improvement Corp lifted full-year revenue and profit as farmers increasingly turn to high-value genetics, including sexed semen. Shares in the company climbed 11.6% to $1.35.

The kiwi dollar was trading at 69.58 US cents by 3pm in Wellington, up from 69.20 cents yesterday.

The trade-weighted index was at 73.97 at 3pm, from 73.69 yesterday. The kiwi traded at 94.66 Australian cents from 94.53 cents, 76.63 yen from 76.06 yen, 58.99 euro cents from 58.76 cents, 50.76 British pence from 50.80 pence, and 4.4994 Chinese yuan from 4.4831 yuan.

ABOUT THE AUTHOR

Tags: Market Close

« NZ shares climb while covid variant still looms largeNZ shares rise on 'covid-fear trade' »

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
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 ▼6.79 ▼6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 ▼7.29 ▼7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 ▼6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 ▼7.39 ▼7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.30 7.89 7.69
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.30 8.89 8.69
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 ▼6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 7.15 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 14 March 2024 9:32am

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