NZ sharemarket ends week with healthy rise of over 1%

The New Zealand sharemarket had another quiet day, ignoring further gains on Wall Street, but it completed the week with a healthy rise of more than 1%.

Friday, January 26th 2024, 6:20PM

by BusinessDesk

The S&P/NZX 50 Index fell sharply at the opening and had a late rise for the second day, running to close at 11,875.03 – down 14.6 points or 0.12% after reaching an intraday low of 11,816.91.

The NZX index gained nearly 1.5% this week and has risen 0.8% so far this year.

The Australian securities exchange (ASX) exchange across the Tasman was closed for the Australia Day holiday, and volumes plunged to 19.95 million share transactions worth $61.66m. There were 71 gainers and 60 decliners on the main board.

Jeremy Sullivan, investment advisor with Hamilton Hindin Greene, said, “We had no Aussie investors involved, and our market was thinly traded. People have now digested the latest New Zealand inflation data, and there was only a small reaction.

“The market is now eagerly awaiting the company reporting season – that’s the next cab off the rank."

Further positive economic data in the United States fuelled hopes that the Federal Reserve will soon cut interest rates.

Gross domestic product grew 3.3% in the fourth quarter, well ahead of the market expectation of 2%, and underscoring continued economic resiliency.

The personal consumption expenditures price index, a favoured indicator for the Fed, was up 2.7% on an annual basis, down from 5.9% a year ago.

Core inflation, excluding food and energy, increased by 3.2%, down from 5.1%, and inflation from the service sector, which has been running hot, is back at 2.6% – the lowest since 2020.

The S&P 500 climbed to new heights after increasing 0.53% to 4,894.16 points; the Nasdaq Composite, which has also finished higher for six successive trading days, gained 0.18% to 15,510.5; and the Dow Jones Industrial Average was up 0.64% to 38,049.13, a new all-time high.

Electric vehicle manufacturer Tesla, part of the Magnificent Seven technology stocks, fell 12.13% to US$182.63 (NZ$299) after reporting a quarterly revenue increase of just 3% to US$25.2 billion – its slowest gain in three years.

The local market was dragged down by Ebos Group, falling 85c or 2.3% to $36.15, and Meridian Energy declining 15c or 2.61% to $5.60. Summerset Group gave up some of its recent gains, declining 20c or 1.82% to $10.80.

Chorus declined 15c or 1.91% to $7.70; Manawa Energy shed 9c or 2.05% to $4.3; Third Age Health fell 7c or 4.93% to $1.35; and T&G Global was down 4c or 2.05% to $1.91.

Chatham Rock Phosphate gave back 1.2c or 6.98% to 16c; CDL Investments was down 1.5c or 1.84% to 80c; NZX declined 3c or 2.78% to $1.05; and Carbon Fund decreased 4c or 2.17% to $1.80.

Fisher & Paykel Healthcare added 25c to $23.95; Vulcan Steel increased 23c or 2.92% to $8.10; a2 Milk gained 5c to $5; Sanford was up 14c or 3.57% to $4.06; Eroad improved 2c or 2.22% to 92c; and Burger Fuel rose 2c or 7.14% to 30c.

Winton Land rebounded 10c or 3.92% to $2.65; Comvita was up 5c or 2.22% to $2.30; Serko gained 8c or 1.99% to $4.10; AFT Pharmaceuticals increased 11c or 3.09% to $3.67; and NZME added 3c or 3% to $1.03.

Green Cross Health increased 3c or 2.65% to $1.16; Bremworth was up 2c or 3.17% to 65c; and 2 Cheap Cars added 2c or 2.53% to 81c.

MHM Automation was up 1c to $1.68 after shareholders approved the takeover by American Bettcher Industries at $1.70 per share. Bettcher, based in Delaware, is a leading developer of food processing equipment with operations in North and South America, Asia and Europe.

Tags: Market Close