by BusinessDesk
The S&P/NZX 500 Index gained momentum at lunchtime and closed at 11,971.92, up 55.14 points or 0.46% after reaching an intraday low of 11,868.47. Its previous rise was 0.79% on March 28.
There were 68 gainers and 61 decliners over the whole market on light trading of 21.58 million shares worth $72.35 million.
Greg Smith, head of retail with Devon Funds Management, said the Reserve Bank was the deliverer of good tidings.
He said the official cash rate remained on hold at 5.5% as expected but the big takeaway for the market was that price inflation can return to the Reserve Bank target range this calendar year.
“This went against the narrative that inflation is remaining sticky and persistent. The economy is not in great shape and if inflation gets near the target, then rate cuts are a lay down misère,” Smith said.
The Reserve Bank said in its monetary policy review the NZ economy continued to evolve as anticipated, and a restrictive monetary policy stance remained necessary to further reduce capacity pressures and inflation.
The bank believed consumer price inflation could return to the 1-3% target range this year.
Heavyweight Fisher and Paykel Healthcare led the market upwards by increasing 68c or 2.65% to $26.30 after investment manager UBS upgraded the stock’s target price to $29.10, from $28.50.
Smith said the UBS report commented Fisher and Paykel had its strongest (obstructive sleep apnea) mask offering in a decade and upgraded its hospital revenue growth to 70% over the next five years.
“Investors are positive over the launch of its fourth mask (Nova Micro) in two years and they are fetching premium prices compared to competitors’ products. It all rolls into a new earnings growth story.”
On the market
Ebos Group was up 66c or 1.93% to $34.80; Mainfreight collected $1 to $68.50; Manawa Energy gained 7c to $4.60; Sanford rose 13c or 3.32% to $4.05; Briscoe added 8c or 1.77% to $4.60; and Vector increased 6c to $3.81.
Winton Land increased 4c or 1.81% to $2.25; Steel & Tube added 3c or 2.88% to $1.07; Solution Dynamics improved 4c or 2.86% to $1.44; and NZX was up 2c or 1.82% to $1.12.
Among the property stocks, Investore was up 2c or 1.77% to $1.15, and Precinct also gained 2c or 1.71% to $1.19.
Chorus gained 14c or 1.87% to $7.63 after reporting slower connection activity in its third-quarter update. The decline in copper connections slowed to 18,000 compared with 21,000 in the previous quarter. Just 55,000 copper connections remain in areas where Chorus has fibre available.
Fibre connections - now with a 71% uptake - grew 12,000 in the three months ending March, slightly higher than 11,000 fibre connections in the second quarter. This offset the 8,000 lines reduction of copper broadband connections.
Comvita declined a further 4c or 1.78% to $2.21; a2 Milk was down 13c or 2.03% to $6.26; Freightways shed 28c or 3.11% to $8.72; Oceania Healthcare declined 2c or 3.03% to 64c; and Tourism Holdings fell 10c or 3.32% to $2.91.
Serko declined 8c or 2.18% to $3.59; Vista Group was down 7c or 3.54% to $1.91; Millennium & Copthorne Hotels decreased 6c or 3.13% to $1.96; Rakon eased 4c or 3.39% to $1.14; and Enprise decreased 3c or 7.41% to 37.5c.
New listing Being AI continued its meteoric rise, gaining 0.006c or 6% to 10.6c on increased activity after starting at 1.7c a week ago. Another technology stock Blackpearl Group was up 3c or 4.48% to 70c.
Chatham Rock Phosphate rose 2.7c or 22.88% to 14.5c after telling the market it had been invited to make an application for the Chatham Rise phosphate project to be considered as a listed project in the Fast-Track Consenting Bill. It will take up the offer.
TradeWindow gained 1.2c or 7.06% to 18.2c after reporting a 26% increase in revenue to $6.2m for the year ending March. The software firm has launched its share purchase plan to raise up to $200,000, adding to its earlier placement worth $2m.
| « NZ sharemarket down 0.5% ... again | NZ sharemarket hit by global inflation fears » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved