NZ shares inch higher as US shutdown sidelines investors
The S&P/NZX 50 index rose 2.88 points, or 0.03 percent, to 9108.91. Within the index, 19 stocks rose, 10 were unchanged and 21 fell. Turnover was $114 million.
The partial government shutdown affecting 800,000 federal workers has lasted more than a month and investors are increasingly concerned about the economic impact as it drags on. Trading is also very tepid after expectations that the Reserve Bank of New Zealand could move to cut rates were pared back after yesterday's inflation data, which showed signs of emerging cost pressure.
"That has meant that potentially a rate cut is off the table," said Peter McIntyre, an investment adviser at Craigs Investment Partners.A rate cut tends to make equities more attractive, in particular those that pay high dividend yields.
Overall, however, "we are really driven by offshore market sentiment," he added.
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