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: Monday, May 16th, 7:04PM

Investments

rss
The Markets

NZ shares snap back after shock of war

New Zealand's sharemarket picked up on a last-minute Wall Street surge and continued its resilient rally which has lifted the benchmark equity index recovery almost 4% in the past three days.

Tuesday, March 1st 2022, 6:48PM

by BusinessDesk

The S&P/NZX 50 Index rose 220 points, or 1.8%, to 12,197.92. Turnover was $177 million.

US indices traded lower for most of the overnight session but spiked into the close to either recover much of their losses or even turn green in the case of the Nasdaq Index.

Tina Teng, a markets analyst at CMC Markets, said stock markets had bounced off their lows as investors digested the impact of new sanctions on Russia.

Local analysts have speculated the worst of the financial shock from the crisis is now behind markets and investors should turn their attention back to inflation risks.

Greg Smith, head of retail at Devon Funds, said it was likely that markets will “snap back” as they did after previous conflicts when the initial shock of war wears off.

However, he said the conflict will fuel inflation as Russia is a key producer of oil and the world’s largest producer of wheat – prices of both commodities have jumped recently.

Pushpay Holdings led the local market higher, rallying 6.5% but stopping just short of $1 at 99 cents per share.

Meridian Energy bounced 5% to $5.25, and small-time electricity generator NZ Windfarms also lifted 5% to 21 cents.         

Meridian was sold off heavily after it reported its first set of earnings with the impact of the new Tiwai Point electricity contract, which was a $40m drag on the first half of the financial year.

However, Jarden senior analyst Grant Swanepoel said last Wednesday the flat earning was a good result, considering the firm had heavily discounted its largest single contract.

Air travel stocks were higher today after the government announced the borders will reopen to NZ citizens without self-isolation requirements.

Air NZ shares bounced 3.7% to $1.55 and Auckland International Airport was up 3.2% at $7.35.

Analysts almost universally consider the airline to be a good company, but irrationally overvalued by the market.

As one wrote in a note earlier this week: “Is this still a damn good airline brand? Absolutely. Is it well run? Ditto, but we still can’t get near the current stock price”. 

Tourism Holdings had a bounce yesterday and fell back 1.9% to $2.57, today.

Vista Group International, which was one of the last companies to report this round, rose 2.5% to $2.02. The cinema software company reported a loss of just $9.8m, down from $51.8m last year.

Synlait Milk had the day’s steepest decline, falling 2.1% to $3.30 – the conflict in Ukraine has the potential to push up dairy prices and raise the input costs for the processor.

The NZ dollar has suffered in recent days as risk-averse traders flocked to the US dollar. However, it climbed with commodity prices and local interest rates today, trading at 67.62 US cents at 3pm in Wellington, up from 66.90 cents yesterday.

Tags: Market Close

« ‘Impressively resilient’ NZX 50 up 0.3%NZ shares seesaw and investors buy bonds »

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
  • Brian Gaynor dies
    “RIP - a true icon and such a humble person who helped so many....”
    12 hours ago by p simone
  • Brian Gaynor dies
    “Very sad. Condolences to him family....”
    13 hours ago by sanet.drury@gmail.com
  • Brian Gaynor dies
    “Brian was someone you would always go and listen to if he was presenting at a seminar or conference, someone you would always...”
    14 hours ago by MikeBeuvink
  • Brian Gaynor dies
    “A true champion of the industry. My sincere condolences to family, colleagues and friends. ...”
    14 hours ago by Pragmatic
  • [GRTV] AIA rolls out direct life insurance plans
    “Thanks Lifeadviser1, and it is great to see you have been having a play in the system. You are right, in the original...”
    16 hours ago by Sam.Tremethick
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 5.35 4.49 5.25 5.55
ANZ 5.54 5.15 5.85 6.15
ANZ Blueprint to Build 2.78 - - -
ANZ Special - 4.55 5.25 5.55
ASB Bank 5.35 4.49 5.25 5.55
Avanti Finance 5.45 - - -
Basecorp Finance 6.45 - - -
Bluestone 5.29 7.49 7.59 -
BNZ - Classic - 4.55 5.25 5.45
BNZ - Mortgage One 5.55 - - -
BNZ - Rapid Repay 5.55 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.55 5.35 5.94 5.99
BNZ - TotalMoney 5.55 - - -
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
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 4.70 5.20 -
Heartland Bank - Online 4.00 3.85 4.70 4.84
Heretaunga Building Society 5.95 4.80 5.50 -
HSBC Premier 5.49 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.25 ▲4.29 ▲5.09 ▲5.35
Kainga Ora ▲5.43 ▲4.57 ▲5.58 ▲5.85
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 5.00 5.55 6.19 6.39
Kiwibank - Offset 5.00 - - -
Kiwibank Special 5.00 4.55 5.19 5.39
Liberty 4.84 - - -
Nelson Building Society 5.95 4.95 5.85 -
Pepper Essential 3.44 - - -
Resimac 4.59 5.60 6.16 6.29
Lender Flt 1yr 2yr 3yr
SBS Bank 5.29 4.69 5.35 5.49
SBS Bank Special - 4.19 4.85 4.99
Select Home Loans 4.09 4.29 4.86 5.09
The Co-operative Bank - First Home Special - ▲4.19 - -
The Co-operative Bank - Owner Occ 5.45 ▲4.29 5.19 5.45
The Co-operative Bank - Standard 5.45 ▲4.79 5.69 5.95
TSB Bank 5.59 ▼5.14 6.05 6.15
TSB Special 4.79 ▼4.34 5.25 5.35
Unity 5.65 ▲4.80 ▲5.50 -
Wairarapa Building Society 5.24 4.55 5.20 -
Westpac 5.54 5.09 5.79 6.09
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.54 - - -
Westpac Special - 4.49 5.19 5.49
Median 5.45 4.55 5.25 5.52

Last updated: 16 May 2022 9:03am

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