Kiwi hits 10-month high vs Aussie
The New Zealand market started the week on a strong footing, with the local stock market higher and the kiwi dollar hitting a 10-month high against its Australian counterpart.
Monday, December 5th 2022, 5:02PM
by BusinessDesk
The NZ dollar rose above 94 Australian cents for the first time since January, trading 94.01 cents at 3pm in Wellington from 93.56 cents on Friday, and was also stronger against the greenback, rising to 64.01 US cents from 63.58 cents last week.
The trade-weighted index was at 73.54 up from 73.25 at the end of last week.
OFX traders said in a note the kiwi was the standout performer last week, continuing a stellar run, as New Zealand's interest rate track was poised to top out higher than its Australian counterpart. The Reserve Bank of Australia is expected to raise the target cash rate a quarter point to 3.1% tomorrow, still below NZ's 4.25% benchmark rate.
Meanwhile, NZ's stock market joined a rally across Asia on renewed optimism that China will start loosening its covid-19 restrictions.
The S&P/NZX 50 index increased 35.90 points, or 0.3%, to 11,677.75. Across the main board, 55 stocks rose and 73 fell. Turnover was $108.2 million.
Devon Funds head of retail Greg Smith said the market was in “a bit of a dead zone” following recent annual meetings and the mini-November earnings season.
Smith said tomorrow's RBA rate review and the second to last Global Dairy Trade auction for the year on Wednesday are the main events this week.
“Outside of that, I’d say it will be a pretty quiet week," he said.
The top 50 was led higher by Synlait Milk, up nearly 6.9% to $3.40, after the stock was upgraded by Macquarie to 'neutral'. A2 Milk, which counts Synlait as a major supplier, fell 0.5% to $6.68.
Hospitality operators were among the stronger performers on the main board after Restaurant Association figures showed spending rose across the sector.
Good Spirits Hospitality climbed 16.7%, or 0.6 cents, to 4.2 cents, in very light trading. Savor was up by 8.6% to 38 cents. Fast-food operator Restaurant Brands fell 2.3% to $6.50.
Smith said increased turnover was good news for the sector and a sign people were spending ahead of the Christmas and summer break.
Among other companies to gain were Pacific Edge up 3.3% to 46.5 cents.
Vulcan Steel, which will soon join the NZX 50, rose 2.7% to $9.04.
Eroad, which is being replaced by Vulcan Steel, posted the biggest fall on the NZX 50, falling 5.7% to $1.17.
NZME increased 0.8% to $1.20 after the government announced over the weekend it was going to make tech firms such as Google and Meta pay for local news.
Contact Energy rose 2% to $7.80. Mercury NZ was also up 1.5% to $5.635.
Fisher & Paykel Healthcare extended its rally, up 0.5% to $24.16. In the past five days, the stock is up 15%.
On the flip side, Black Pearl Group, which listed on Friday, sank 31.5% to 74 cents. Its listing price on Friday was $1.22.
Smith said the fall was probably a sign of highly volatile market conditions.
Blis Technologies fell 10.7% to 2.5 cents.
Napier Port declined 3.8% to $2.76 and Port of Tauranga slipped 1.1% to $6.20.
Move Logistics fell 3.2% to 92 cents.
Tomorrow, WasteCo NZ is expected to list via a reserve takeover through the listed shell company Goodwood Capital.
| « NZ shares gain 2.5% this week | [Market Close] RBA hikes by non-surprising 25 basis points » |
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