NZ market lifts after surprise CPI data

New Zealand’s benchmark index edged up after consumer price index (CPI) data came in lower than most economists and the country’s central bank forecast.

Tuesday, October 17th 2023, 6:04PM

by BusinessDesk

The S&P/NZX 50 Index rose 29.3 points, or 0.26%, to 11,214.37. Turnover was $119.7 million. There were 66 gainers and 49 decliners on the main board.

The likelihood of the Reserve Bank of New Zealand (RBNZ) raising interest rates in November decreased significantly, falling from about 34% to just 10%, following the release of Tuesday's consumer price index (CPI) data.

The fresh CPI data revealed a decrease in annual inflation to 5.6% during the September quarter. A reduction to the interest rate is now being anticipated for February 2025 – a few months ahead of previous expectations.

On the company front, Devon Funds head of retail Greg Smith said gentailers Meridian and Mercury NZ had both provided updates today.

“Meridian’s highlights for the quarter included total inflows at 114% of historical averages, but 27% lower than last year. Generation was 1.7% lower but at a 91.4% higher average price,” he said.

“Mercury also noted higher national inflows while demand was 0.5% higher for the quarter relative to last year, primarily driven by urban cities and partially offset by lower industrial demand. ”

Mercury edged down 0.3% to $6.13, Meridian Energy fell 5 cents or 1% to $5.15 and Genesis Energy was flat at $2.42. Manawa Energy fell 7 cents or 1.5% to $4.51 and Contact Energy was down 7 cents or 0.9% to $7.91.

Auckland International Airport ended the day flat at $7.92 per share. The airport held its annual meeting on Tuesday and told BusinessDesk it isn’t expecting a change in government to negatively affect the airport’s plans for the future.

The 2024 financial year guidance for the country's biggest airport remained unchanged – but the airport company says it is expecting a 29% increase in flight capacity between November and March next year.

Chief executive Carrie Hurihanganui said the airport had an underlying profit after tax guidance of between $260m and $280m for the 2024 financial period.

Today, Air NZ was down 1.5 cents or 2.1% to 68.5 cents.

Fisher & Paykel Healthcare was up 22 cents or 1.1% to $21.13. The healthcare wholesaler told the market yesterday that it had launched its sleep apnea Solo mask in NZ and Australia.

Fletcher Building edged up a little today, after falling more than 10% yesterday when the stock came out of a trading halt.

The building firm ended the day up 5 cents or 1.2% to $4.38.

Port of Tauranga edged down 6 cents or 1.1% to $5.68. Fraser Whineray – who used to be Fonterra’s chief operating officer – was appointed to the port’s board on Tuesday.

Cinema tech company Vista Group also tracked downwards, falling 5 cents or 3.5%, to $1.37.

The NZ dollar was trading at 59.06 US cents at 3pm in Wellington, the same as Monday. The trade-weighted index was at 70.22, from 70.34 on Monday.

Tags: Market Close