NZ shares climb in light trading

New Zealand shares edged higher in very light trading with US markets closed until Tuesday night for Martin Luther King Day.

Monday, January 17th 2022, 7:20PM

by BusinessDesk

The S&P/NZX 50 Index rose 16 points, or 0.1%, to 12,806.90. Turnover was $72 million, well below average trading volumes.

Two technology stocks, which have been under pressure lately, led the gains today: Travel booking software company Serko and cinema software firm Vista Group were each up 2.3% at $6.15 and $2.22, respectively.

Greg Smith, head of retail at Devon Funds, said concern from the United States about climbing interest rates was acting as a headwind and affecting growth stocks in particular.

He said it was possible the NZX 50 will outperform overseas markets this year as New Zealand has already begun tightening monetary policy ahead of other central banks.

ANZ Research said central banks globally now have a “mammoth job” ahead to offset the negative supply shock which has sent inflation soaring.

The yield on a 10-year government bond climbed to 2.53% today, following US treasury rates higher, and is sitting near the 1-year record of 2.65%.

The small-cap mining company, Chatham Rock Phosphate, jumped 7.3% to 13.3 cents – still well below its 12-month high of 17 cents.

Chatham Rock today said it will progress a pre-feasibility study for the production of dicalcium phosphate (DCP), from its Korella phosphate projects in Queensland.

The stock, which is listed on the NZX, Frankfurt exchange and Calgary's TSX venture exchange, acquired a mining lease on the Korella phosphate and rare earth mine last October.

It told the NZX today a detailed scoping study had already been undertaken with Belgian phosphate production company Prayon SA.

Shares in internet infrastructure firm Chorus rose 0.9% to $7.04 after debt ratings firm Moody’s increased its credit rating threshold.

The company can now carry a debt to earnings ratio of 5.25x, up from 4.2x, without facing downgraded that would increase its borrowing costs.

Logistics company Freightways fell 2% to $12.72 after announcing it will release its half year results, for the period ended December, to the NZX on Feb 21.

Mainfreight also fell 0.9% to $91.15, but Meridian Energy had the index’s biggest decline, falling 2.3% to $4.66.

The kiwi dollar fell again, weighed down by risk-off moves in equity markets as well as omicron concerns globally.

It was trading at 67.99 US cents at 3pm in Wellington, down from 68.59 cents on Friday.

Tags: Market Close

« First full week of 2022 share trading negativeIkeGPS up 8% on contract extension »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

www.GoodReturns.co.nz

© Copyright 1997-2022 Tarawera Publishing Ltd. All Rights Reserved