by BusinessDesk
The S&P/NZX 50 Index fell 56 points, or 0.5%, to 11,177.36. Turnover was $141 million.
Consumer price data released in the US this morning showed prices increasing faster than most had expected.
While the headline figure fell to 8.3% – from 8.5% last month – most were predicting a number closer to 8%.
“Although still early days, the stronger data were a blow to those expecting a rapid descent in inflation,” said BNZ strategist, Jason Wong.
Investors are already nervous that the interest rate hikes already planned by the US Federal Reserve will tip the US economy into recession, but the central bank could be forced to make even more hikes if inflation doesn’t slow.
It was this concern that caused US equity markets to give up early gains overnight and ultimately close in the red.
The Kiwi dollar also fluctuated between 62.80 US cents and 63.80 before settling near where it started at 62.95.
NZ-listed stocks were up for much of the day but fell into the close and ended the day down half a percent.
NZ King Salmon had the worst performance of the day, falling 12.5% to 21 cents after recently completing its capital raise with an 88% uptake of shares on offer at 15 cents.
Eroad dropped 5.4% to $2.97 as it gave back a recent rally. The stock is down more than 40% year-to-date.
Shares in KMD Brands, which owns retailer Kathmandu, fell 3.3% to $1.18. The Accident Compensation Corporation today reported it had acquired a 5% stake in the company for $4.9m.
Air NZ dropped 2.7% to 71 cents, giving back some of yesterday’s rally.
Shares in Fisher & Paykel Healthcare were down 2.6% at $20.35 after analysts this week warned the stock was expensive, now that it was no longer buoyed by pandemic sales.
Pushpay Holdings fell 2.3 % to $1.27 even after Jarden analysts reiterated an ‘overweight’ recommendation on the stock.
“While the share price has rerated positively post the company announcing it has received unsolicited expressions of interest, we continue to see fundamental value at this level,” the analysts wrote.
Honey maker Comvita climbed 3.2% to $3.25 after it gave a trading update in which it said it had earned $23.9m in the 10 months ended April and would earn between $27m and $30m in the full year.
Ryman Healthcare had the day’s biggest gain, jumping 6.1% to $9.25. Tomorrow index builder MSCI will announce whether the stock will stay in its world index, or not.
An email to institutional clients from Forsyth Barr said it most likely Ebos would be added, and Ryman removed – although it was possible there would be no changes at all.
| « NZ shares stabilise after slide | NZ and Aussie dollars drop to two-year low » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved