by BusinessDesk
The S&P/NZX 50 Index fell 80.5 points, or 0.72%, to 11,200.04. Turnover was $108.8 million.
Mark Lister, an investment director at Craig’s IP, said it had been an “ugly few weeks for markets globally” and the NZ share market's rebound today was thanks to the positive bounce that US markets had overnight as well as export stocks having a good day.
He said with the NZ dollar still incredibly low, export stocks were enjoying it while it lasted. Healthcare manufacturer Fisher & Paykel was up 1.6% to $19.20, logistics company Mainfreight jumped 1.77% to $68.90, and A2 Milk rose 0.98% to $6.16.
Tourism Holdings was up 2.94% to $2.80 after Australia’s competition watchdog gave it and Apollo Tourism & Leisure the tick of approval over its proposed merger.
However, just like the Commerce Commission's green light last week, the clearance from the Australian Competition and Consumer Commission is subject to Apollo divesting $45m of its assets to budget campervan company Jucy Rentals.
Air NZ rose 0.71% to 71 cents. The airline told the NZX that it’s considering making an offer of the five-and-a-half-year, unsecured, unsubordinated, fixed-rate bonds to institutional and NZ retail investors.
The airline said as part of its post-covid strategy, Air NZ was focused on continuing to have a “diverse range” of debt sources.
“As a proudly NZ company the airline feels it is important for the company to support the NZ capital markets,” the airline said in its statement.
Auckland International Airport also announced that Sarah Kearney, the chief digital officer at The Warehouse Group, has been appointed as a ‘future director’ as part of the airport’s ‘Future Director programme’ from Oct 19 for 18 months.
The shares were up 0.94% to $7.49 by early evening.
Software company Gentrack Group increased its revenue guidance by 8.6% following previously downbeat expectations.
The dual-listed firm, which designs and builds software for energy and airport companies, told the market today that it now expects its revenue for the current financial year to be about $125m, an increase of $10m from its guidance issued in February and May.
Lister said it was a good announcement and he was surprised the market hadn’t moved after the news was announced this morning. By the early evening, Gentrack had jumped 8.96% to $1.46 but only moved $454 worth of shares.
‘White flag’
The NZ dollar took a break from its downward spiral and moved in a more positive direction over the day.
It was trading at 57.02 US cents at 3pm Wellington today, up from 56.23 cents on Wednesday.
ASB’s senior wealth economist Chris Tennent-Brown said in a note this morning that the Bank of England (BoE) was planning to step in and steady the fragile market after the pound plunged last week.
Independent treasury adviser Peter Cavanaugh told BusinessDesk that the BoE stepping in was like “waving the white flag”, as only a day earlier BoE had declared that they weren’t going to do anything.
“That's raised the question of whether this situation with a strong US dollar has reached the point where a number of other central banks are worried,” he said.
| « Property stocks pull market lower | Currency volatility drives NZ market down » |
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