NZX50, kiwi dollar gain as RBNZ holds cash rate in split decision

New Zealand’s S&P/NZX 50 index and the kiwi dollar rallied after the Reserve Bank kept the official cash rate at 2.25% as expected in a split decision, where external appointments were pushing for an earlier hike than staff.

Interest rate sensitive companies were mixed, with Vector and Precinct Properties New Zealand on the red side of the ledger, while Vital Healthcare Property Trust and Stride Property among the day’s gainers, with Infratil providing the biggest tailwind as brokers upgraded the infrastructure investor after its strong annual result.

KMD Brands posted the biggest gain on the day after the retailer’s board said it’s hiring advisers to put the business under the microscope as it reported slower sales growth in the latest quarter.

Meanwhile, the dual-listed lenders ANZ Group Holdings and Westpac Banking Corp were at the bottom of the leaderboard as softer-than-expected inflation figures across the Tasman still showed signs of cost pressures on businesses.