by BusinessDesk
The S&P/NZX 50 Index fell just 9.2 points, or 0.08%, to 11619.04. Turnover was $92.1 million.
Devon Funds head of wealth Greg Smith described the current market environment as a “news vacuum” and the reason the market had been so quiet.
He said the biggest news today was Statistics New Zealand’s latest building activity data which revealed that residential activity rose 3.2% in the June 2022 quarter, while non-residential activity rose 1.6%. This was ahead of many analysts' predictions but still showed a flattening of activity.
Fletcher Buildings was down 0.4% to $5.51 while residential developer Winton Land was up 2.6% to $2.75. However, Winton’s shares had only $3,254 traded, compared to Fletcher’s $2.1m Smith said a “sprinkling” of earnings from companies like Briscoes, Kathmandu Holdings – now named KMD Brands – Synlait Milk and Fonterra were coming out from the middle to the end of September but until then, he expected the market to be quiet.
Briscoe Group was up 1.3% to $5.35 on light volume and KMD Brands fell 3.7% to $1.03. Synlait Milk also rose 0.6% to $3.44 and Fonterra Shareholders' Fund Units were also up 0.7% to $2.94.
While it might be quiet in NZ waters, ASB chief economist Nick Tuffley said in a note earlier today that it was going to be a busy week for NZ’s Australian cousin.
The Reserve Bank of Australia (RBA) is widely expected to lift the cash rate another 50 basis points tomorrow afternoon with the RBA governor to speak on Thursday.
Australia’s gross domestic product (GDP) data for the second quarter is also out this Wednesday. Tuffley said consumer spending and exports were expected to be the “key” drivers of growth over the second quarter.
“Like for NZ, Australia is showing early signs that rising interest rates are impacting on housing and construction,” he said.
The latest data from the United States has also been tending to favour those who believe the world economy may slip into a recessionary phase.
The NZ dollar picked up a bit after at trading the lowest it has traded in months against the greenback last week.
Today, the kiwi was trading at 60.91 US cents at 5pm, up from 60.60 US cents on Friday.
| « NZ dollar lingers lower for another day | RBA hikes cash rate by another 50 basis points » |
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