NZ market flat, Tower rises

The New Zealand sharemarket, heading for its 10th fall in 12 days, finished the week flat and was saved by another rise in the end-of-day matching session.

Friday, April 12th 2024, 6:34PM

by BusinessDesk

The S&P/NZX 50 Index closed at 11,931.32, down 2.99 points or 0.03% with the turnaround coming in the last 45 minutes when brokers match their buy and sell orders.

The intraday low was 11,840.57 points. The index declined 0.67% this week and has gained 1.4% for the year to date.

There were 66 gainers and 71 decliners over the whole market with 25.9 million shares worth $84.39 million changing hands.

Matt Goodson, managing director of Salt Funds Management, said with the school holidays starting, many people were away and the market was stuck in a traffic jam.

He said the market was trapped by the slow economy and sharp rise in wholesale interest rates. “Until we see some easing from the Reserve Bank, the market will likely continue to tread water.”

The New Zealand 10-Year Government Bond yield was up a further 4.9 basis points to 4.829% and the US 10-Year Treasury Note increased to 4.571%.

ANZ Research predicted the first quarter consumers price index, to be released next week, would rise 0.6%, taking annual inflation down from 4.7% to 4% but above the Reserve Bank’s forecast of 0.4% and 3.8%.

Goodson said there was renewed optimism with the Magnificent Seven technology stocks in the United States but the rally wasn’t broadly based.

The technology-driven Nasdaq Composite reached a new high after rising 1.68% to 16,442.2 points.

Online marketplace Amazon also hit a high, increasing 1.67% to US$189.05 (NZ$314.77).

Apple was up 4.33% to US$175.04 (NZ$291.44); Nvidia increased 4.11% to US$906.16 (NZ$1,508.79); and Alphabet, owner of Google, gained 1.99% to US$160.79 (NZ$267.72).

At home, Insurer Tower was up 2c or 2.9% to 71c. One broker said Tower has experienced a positive reversal of fortunes with the absence of large events in the first half and is likely to report a strong financial result in May.

Mercury Energy was down 12c or 1.79% to $6.60; PGG Wrightson declined 5c or 2.38% to $2.05; Michael Hill eased 2c to 71c; Synlait Milk shed 2c or 3.39% to 57c; and Serko decreased 8c or 2.23% to $3.50.

Other decliners were Winton Land down 7c or 3.11% to $2.18; Smartpay shedding 4c or 2.67 % to $1.46; and Carbon Fund falling 7c or 4.64% to $1.44.

Freightways collected 18c or 2.1% to $8.76; Meridian Energy was up 7c to $5.78; Manawa Energy gained 11c or 2.42% to $4.65; Napier Port added 4c or 1.73% to $2.35; and Steel & Tube increased 3c or 2.88% to $1.07.

Ebos Group gained 30c to $35.11. Goodson said pricing in the latest MSCI Large Cap Index review begins next week and Ebos is in danger of falling out of the global index.

NZME was up 2c or 2.22% to 92c after gaining 3.45% the day before; Eroad improved 2c or 2.35% to 87c; Savor increased 1.5c or 6.52% to 24.5c; and Cooks Coffee picked up 1c or 3.85% to 27c.

Chatham Rock Phosphate, up 0.009c or 5.96% to 16c, resumed trading after telling the market the invitation to apply as a listed project (for the Chatham Rise phosphate project) in the Fast Track Consenting Bill was not exclusive – and that numerous other parties received the same invitation.

Tags: Market Close