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

NZ's Financial Adviser News Centre

GR Logo
Get your tickets to the Mindful Money ethical investment awards CLICK HERE Dismiss
Last Article Uploaded: Saturday, June 25th, 3:56PM

Investments

rss
The Markets

NZ shares fall as investors face up to inflation 'bogeyman'

New Zealand shares fell for a third consecutive session as international investors continue to sell risk assets in the expectation the US central bank will soon tighten monetary policy.

Tuesday, January 11th 2022, 6:47PM

by BusinessDesk

The S&P/NZX 50 Index fell 61 points, or half a percent, to 12,831.73. Turnover was $130.8 million.

It was another grim session for global markets overnight as US stocks took another fall,. The S&P 500 has declined on each of the five trading days in 2022 so far.

ANZ’s head of global economics, Brian Martin, said investors have been paring back risk assets as they now expect the US Federal Reserve to raise interest rates in March. 

“Equity markets sold off across the board as inflation concerns and anxiety over future monetary tightening weighed,” he said.

Previous declines in the US market have been short-lived as investors have been willing to ‘buy the dip’, taking a bet that markets will move up in the long-term regardless of immediate challenges.

Martin said it will be important to see if buy-the-dip strategy in equities re-emerges, given the more uncertain economic backdrop and inflation forcing central banks to stop supporting asset prices.

Castle Point portfolio manager Stephen Bennie said inflation was a “financial villain” that could challenge the buoyancy of share markets.  

“In a world where zero-interest rates have become the dominant metric for pricing asset classes, inflation threatens to break the code and force dramatic repricing,” he said

Bennie said current corporate earnings had taken a backseat to the possibility of large future earnings when interest rates are as low as they have been.

Travel booking software firm Serko led the index lower, falling 4.5% to $6.21. The company is currently operating at a net loss but hopes to become a key player in the global business travel market in the future.

Another growth-oriented software stock, Vista Group, fell 3.5% to $2.18, early-stage blockchain firm Trade Window was down 4.7% at $2.65, and payment platform Plexure dropped 1.9% to 52 cents.

The index’s largest stock, Fisher & Paykel Healthcare, declined half a percent to $31.95 and Spark NZ was down 0.7% at $4.44 ­­– the two stocks make up 20% of the index.

Fast-food retailer Restaurant Brands had the index’s biggest gain, up 2.5% at $14.60, followed by Ebos Group, which rose 1.5% to $40.44.

The Warehouse Group bounced 1.4% to $3.60 after dropping almost 12% yesterday as it reported strong Christmas sales were not enough to offset rising costs and an otherwise weak half year.

The kiwi dollar was trading at 67.70 US cents at 3pm in Wellington, down from 67.77 cents yesterday as investors continued to shy away from riskier currencies.

“The kiwi is struggling a little this morning in the face of the generalised slump in global risk appetite overnight,” Martin said.

He said the recent rout in the currency was being blamed on “the usual suspects: inflation, tighter monetary policy and covid”.

Tags: Market Close

« NZ shares flat as investors wait for job dataNZ shares fall as Serko hits 10-month low »

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 5.95 4.85 5.35 5.65
ANZ 5.94 ▲5.95 ▲6.40 ▲6.59
ANZ Blueprint to Build - - - -
ANZ Special - ▲5.35 ▲5.80 ▲5.99
ASB Bank 5.85 ▲5.35 ▲5.80 ▲5.99
Avanti Finance 5.95 - - -
Basecorp Finance 6.95 - - -
Bluestone 5.89 7.49 8.09 8.19
BNZ - Classic - ▲5.35 ▲5.69 ▲5.99
BNZ - Mortgage One 5.94 - - -
BNZ - Rapid Repay 5.94 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.94 ▲5.95 ▲6.29 ▲6.59
BNZ - TotalMoney 5.94 - - -
CFML Loans 6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Co-operative Bank - First Home Special - ▲4.75 - -
Co-operative Bank - Owner Occ 5.85 ▲4.85 ▲5.35 ▲5.65
Co-operative Bank - Standard 5.85 ▲5.35 ▲5.85 ▲6.15
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 4.95 5.45 -
Heartland Bank - Online 4.10 ▲4.40 ▲4.90 ▲5.10
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 6.10 5.00 5.75 -
HSBC Premier 5.89 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.25 4.39 5.09 5.45
Kainga Ora 5.43 4.57 5.58 5.85
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 5.50 5.85 6.19 6.39
Kiwibank - Offset 5.50 - - -
Kiwibank Special 5.00 4.85 5.19 5.39
Liberty 4.84 - - -
Lender Flt 1yr 2yr 3yr
Nelson Building Society 6.45 ▲5.55 ▲6.15 -
Pepper Money 4.49 - - -
Resimac 6.19 5.60 6.16 6.29
SBS Bank 5.79 5.05 5.69 5.89
SBS Bank Special - 4.55 5.19 5.39
Select Home Loans 4.09 4.29 4.86 5.09
TSB Bank 5.59 5.14 5.79 6.15
TSB Special 4.79 4.34 4.99 5.35
Unity 5.65 4.95 5.55 -
Wairarapa Building Society 5.74 4.95 5.75 -
Westpac 5.94 ▲5.95 ▲6.29 ▲6.59
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.94 - - -
Westpac Special - ▲5.35 ▲5.69 ▲5.99
Median 5.85 5.00 5.69 5.99

Last updated: 23 June 2022 9:02am

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