NZ market edges up as CPI data remains stable

New Zealand’s benchmark index remained unperturbed by the latest consumer price index (CPI) data remaining steady – but still hot.

Wednesday, January 25th 2023, 6:23PM

by BusinessDesk

The S&P/NZX 50 index rose 61.6 points, or 0.5%, to 11,994.51. Across the main board, 55 stocks fell, and 70 rose. Turnover was $137.2 million.

Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene, said today’s CPI release was the big news of the day.

‘People's expectations of interest rates are ebbing, and the consensus is that inflation may have peaked,” he told BusinessDesk. “That's good for the market and we’re broadly higher today.”

The CPI lifted at an annual rate of 7.2% in the December quarter of 2022 – the same as the prior quarter – with quarterly inflation coming in at 1.4%.

The annual pace of inflation may have remained stable in the final quarter of the year, but it is still piping hot, with large increases in housing, food and transport costs.

After the CPI was released today, the NZ dollar edged up from 65 US cents to 65.20 cents. However, by 3pm in Wellington, it had drifted down to 64.77 cents, slightly lower than yesterday's 64.90 cents.

On the stocks front, Chorus edged up 0.2% to $8.385. The telecommunications company told the market today that total fibre connections had increased by 17,000 to 997,000.

Ryman Healthcare rose 4.3% to $6.36, continuing its very good week which saw the share price shoot up over 5% yesterday. Restaurant Brands' sales increased to $332m for the fourth quarter ending Dec 31, up 16.9% from the previous corresponding period.

Pacific Edge fell for the second day in a row and was down 3.1% to 47.5 cents. Fisher & Paykel Healthcare, which declined yesterday, was up 0.2% to $25.25 by early evening.

A proposed deal between two Auckland viaduct operators has fallen over, stumping former mayoral candidate Leo Molloy’s plans to open his new bar tomorrow.

Good Spirits Hospitality jumped 8% to 2.7 cents in very light trading. The share rise followed a proposed deal between Good Spirits and former mayoral candidate Molloy falling over.

Kiwi Property also saw a significant jump of 4.3% to 96.5 cents.

Tags: Market Close