Pacific Edge gains while market flatlines

New Zealand’s benchmark equity index finished the day virtually unchanged, although cancer diagnostics firm Pacific Edge had a healthy bounce.

Thursday, July 8th 2021, 6:55PM

by BusinessDesk

The S&P/NZX 50 Index gained one single point, or 0.01%, to reach 12,752.51. Turnover was $194.5 million.

Overnight, the US share market gained less than half a percent, although it is already in record territory while the NZX 50 is down 4.6% this year.

The yield on US 10-year Treasuries dropped to its lowest level in more than four months, suggesting investors see inflation as less of a threat, helping equities to move upwards.

In NZ, the 2-year swap rate moved in the other direction to hit a new pandemic high of 0.89%, while the 10-year swap fell to 1.78%, as it looks more likely NZ's Reserve Bank will tighten its policy settings.

Share prices moves on the index were mixed, with A2 Milk leading the charge as it continues to recover from agonising lows. The stock is up nearly 40% from its lowest point, after gaining another 2.7% to reach $7.63 today.

Pacific Edge shares jumped after the Journal of Urology published a peer-reviewed study which found the use of the Cxbladder products was 4.8 times more efficient than the latest American Urology Association guidelines.

“This is a pivotal paper for urologists, outlining the significant increase in clinical resolution that can be achieved from using the multiple Cxbladder products in this fashion,” said chief executive David Darling.

One peer reviewer said the study had the potential to “change the diagnostic paradigm” and even remove the need for more intrusive ways to diagnose bladder cancer.

Shares in the healthcare stock rose 2.5% to $1.23 on the news.

Property stocks have been running hot over the past week on the suggestion some may be added to a FTSE global real estate index in September.

Analysts at Forsyth Barr warned Argosy Property and Stride Property were now “fairly priced” and downgraded them from ‘outperform’ to ‘neutral’.

Argosy Property gained 0.9% at $1.70 today, trading just below its recent record high, and Stride Property was unchanged at $2.57 as there is some doubt it will make it into the index.

Travel software firm Serko posted the day’s biggest fall, dropping 4% to $7.28, followed by Restaurant Brands which declined 2.9% to $14.76 having hit an all-time high yesterday.

The kiwi dollar was trading at 69.84 US cents at 3pm in Wellington, down from 70.18 cents yesterday.

The trade-weighted index was at 73.96 at 3pm, from 74.16 yesterday. The kiwi traded at 93.65 Australian cents from 93.66 cents, 77.14 yen from 77.50 yen, 59.25 euro cents from 59.36 cents, 50.68 British pence from 50.84 pence, and 4.5224 Chinese yuan from 4.5427 yuan.

Tags: Market Close