by BusinessDesk
Statistics NZ said the GDP shrinking in the three months ended March 31 had followed a slightly larger contraction than previously reported of 0.7% in the December quarter.
Also, the US Federal Reserve announced early Thursday morning (NZ time) that it was taking a much-anticipated pause in its rate hikes – but a couple more are likely on the cards before the end of the year.
This currently leaves the Fed’s benchmark rate at a range of 5% to 5.25%, the highest level since 2007.
The S&P/NZX 50 Index edged up very slightly to 8.8 points, or 0.08%, to 11,709.84. Turnover on the entire market was $158.6 million and 60 stocks rose while 65 fell.
Jarden wealth management director Greg Main told BusinessDesk it was another quiet day when it came to company news and investors were busy digesting the slightly hawkish comments out of the Fed.
“It’s quiet from a company perspective unless someone's actually really coming out and doing something new,” he said.
Scott Technology was up 9% by late afternoon after it announced this morning it was undertaking a strategic review of its ownership structure by “exploring options to maximise value for all shareholders”.
The automation and robotics company said this had been decided following discussions with majority shareholder JBS, which owns 53% of the Dunedin-based company.
Main described it as the “main” piece of company news to come out on Thursday and noted that the market had reacted surprisingly positively towards it. Scott Technology was up 9.1% to $3 at the close.
Cinema technology provider Vista Group bounced up 3.16% to $1.63; Agribusiness Scales Corporation rose 4.14% to $3.27; and My Food Bag Group was up 3.55% to 17.5 cents.
The Real Estate Institute of NZ's house price index also came out today.
Although it was down 11.2% year-on-year in May, there were pockets of recovery with listings also showing a modest improvement.
Kiwi Property Group was flat at 89.5 cents per share, Goodman Property Trust rose 0.46% to $2.17, and Argosy Property was flat at $1.11.
Investore Property was down 0.7% to $1.36, Property For Industry fell 2.32% to $2.315, and Precinct Properties edged down 0.81% to $1.23.
Winton Land, which announced on Wednesday it was moving to the “lower end” of its $72m profit guidance, was up 2.78% to $1.85.
Main said stocks that suffered on the index today were mainly on the smaller side. Radius Residential Care was down 6.25% to 22.5c, while Move Logistics fell 5.56% to 85c.
South Port fell 5.11% to $7.43 on light trading.
On the currency front, the NZ dollar was trading at 61.63 US cents at 3pm in Wellington, from 61.64c on Wednesday.
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