by BusinessDesk
The S&P/NZX 50 Index lifted 0.19% or 24.81 points to 13,395.87 after 38.4 million shares, worth $152.9m, were traded.
The S&P/NZX 20 index was up 0.08%, closing at 7,616.96 points, while the S&P/NZX 10 index ended the day at 12,758.41 after rising 0.01%.
There were 64 gainers on the main board and 75 decliners.
Salt Funds Management managing director Matt Goodson said there was volume in trading but not much company-specific news.
Retirement stocks popular
One category that did perform well was retirement stocks, with Ryman Healthcare and Summerset Group both rising.
“No particular reason for either of those moves, and listed property stocks are as distant from retirement village stocks. In general, they’ve been a little bit weak for the last little while and just feel a little heavy today,” Goodson said.
Ryman’s share price lifted 2.49% or 7c to $2.88 after 5.9m shares changed hands, with turnover of $17m.
Shares in Summerset rose 3.21% or 38c to $12.20 on turnover worth $4.6m.
Mainfreight on move
Mainfreight also rose, lifting 2.05% or $1.35 to $67.25.
Vital Healthcare Property Trust traded in high volume, with 4.2m shares changing hands at $8.6m, although it was flat at close at $2.04.
Ebos slips
Ebos Group continued its slide, dropping 2.22% or 62c to $27.25 after shares worth $14.7m were traded.
Goodson said that since Ebos’ profit warning several months ago, its share price had been “one-way traffic”, particularly for offshore investors from his view.
Infratil also had a negative day, falling 1.22% or 14c to $11.32.
Fed cuts rate for third time
In the United States, the Federal Reserve elected to cut interest rates for the third straight time.
Goodson said the new target range set by the Fed was 3.5% to 3.75%, and viewed it as “slightly dovish”.
The Fed is also planning to purchase US$40 billion (NZ$68.9b) a month in treasuries, or short-term, dated securities.
He said that attention had been drawn to liquidity conditions tightening at the short end, with a lot of use of the repayment facility.
“If you’re buying back US$40b of treasuries, you’ll be paying cash to the banks and the funds who sell them to you. So in effect you’ll be injecting that liquidity into the system.”
Goodson also expected the US markets to open weaker tomorrow, following Oracle's roughly 12% after-hours decline.
International news
Wall Street stocks rose, and the dollar retreated on Wednesday after the Federal Reserve’s cut as it seeks to shore up a vulnerable US labour market.
The rate cut was expected, but stocks had been under pressure in recent days in part due to speculation that the Fed would combine Wednesday’s interest rate cut with commentary suggesting a pause to further easing in light of still-elevated inflation.
But market watchers read Fed chair Jerome Powell’s emphasis on the job market during a press conference as a signal that the Fed could cut interest rates again in 2026.
Stocks rose throughout the news conference, with the broad-based S&P 500 finishing up 0.7%. The US dollar retreated against the euro and other major currencies.
– Additional reporting AFP
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