NZ shares edge up as market positivity continues
New Zealand’s market edged up again today, ending the week on a high as it added to January's gains.
Friday, February 3rd 2023, 6:20PM
by BusinessDesk
The S&P/NZX 50 index rose 45 points, or 0.4%, to 12,197.15. Across the main board, 47 stocks fell and 77 rose. Turnover was $112.5 million.
The annual sales update of retailer Briscoes was the big news on the index today, Hobson Wealth Partners director Brad Gordon told BusinessDesk.
“Briscoes was a really strong update, considering the macro conditions that they've been facing in the last year, and the share price reacted positively,” he said. “But I guess you almost have to wonder whether that's the worst of the macro that they'll face.”
Briscoe Group reported full-year sales of $785.9m, up 5.6% on the previous year, with almost a fifth coming through online channels.
The retailer now expects a record net profit of over $88m when it announces full-year results and a final dividend later in March.
The stock ended the day up 2.6% to $4.75.
On the topic of the looming earnings season, the market would be keeping a sharp eye on what Fletcher Building reported, Gordon said, especially now that the building company stood to gain from repair work resulting from the flooding in Auckland over the past week.
Fletcher Building ended the day down 3% to $5.50.
Church-management software company Pushpay was flat at $1.30 after announcing to the market today that an independent valuation of the company had found a takeover offer fell barely within the recommended range.
Index heavyweight Mainfreight jumped 5.2% to $74.10, helping to pull the market higher, while general insurer Tower was down 1.5% to 65.5 cents.
Rival IAG told the ASX earlier today that more than 15,000 claims have been lodged across the insurer's AMI, State, NZI and partner brands as of today.
IAG said a preliminary assessment of expected claims from the Auckland event had indicated that the natural perils cost impact, net of reinsurance, would be at the $236m retention level.
Overnight, the Bank of England (BoE) raised its rates by 50 basis points, which was expected and also – pleasingly – indicated that the bank’s tightening cycle might be nearing an end.
The European Central Bank also hiked its rates by 50bp but took a more reserved position than the BoE on cutting back hikes.
The NZ dollar was at 64.73 US cents at 3pm in Wellington, edging down from yesterday’s high of 65.27 US cents at the same time.
| « NZ dollar jumps almost one US cent following Fed hike | Earnings season countdown begins as RBA hikes 25 basis points » |
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