Market Announcements
Market Summary
Inflationary pressures were the talk of a pensive New Zealand sharemarket yesterday, sending property stocks tumbling for the second day running. The S&P/NZX 50 Index fell sharply at lunchtime and closed at 13,348.61, down 64.26 points or 0.48%. The index has now fallen in six of the last nine trading days and is down more than 1.8% for the year to date. There were 45 gainers and 86 decliners on the main board, with increased volumes reaching 38.7 million share transactions worth $157.1m
In the US, the S&P 500 broke through the 7,000 points mark for the first time but pulled back after the Federal Reserve left its cash rate unchanged at 3.5-3.75%. The Fed said economic activity had been expanding at a solid pace and the labour market had shown signs of stabilising.
At home, the January ANZ Business Outlook survey showed confidence retreated 10 points from its 30-year high of 74 in December, but it remains extremely strong at 64. Expected own activity dropped 9 points, but at 52, it is also historically very high. The survey reported that inflation indicators were up: a net 57% of firms expected to raise prices in the next three months, the highest reading since March 2023. The amount by which firms expect to raise prices lifted from 1.8% to 2.1%, the highest rate in two years. ANZ said wage pressures are starting to lift modestly, and inflation expectations are the highest in 15 months. The net percentage of firms expecting to increase their prices is heading in the opposite direction to the Reserve Bank’s inflation forecasts.
The interest rate-sensitive property sector was down nearly 1% following its 1.84% fall the day before. Local stocks Property for Industry fell 8c or 3.46% to $2.23; and Argosy, Goodman Trust and Vital Healthcare Trust were all down 2c to $1.17, $1.90 and $1.94, respectively. Investore eased 1c to $1.11. Fletcher Building declined 13c or 3.35% to $3.75; Summerset was down 16c to $11.33; Mainfreight eased 76c to $67.45; and Vulcan Steel decreased 34c or 4.08% to $8. Ebos Group continued its slide, down 40c to $25.60 on trade worth $11.36m. Gentrack shed 15c or 1.91% to $7.70; SkyCity declined 4.5c or 4.71% to 91c; Scott Technology decreased 9c or 3.07% to $2.84; and Eroad was down 4c or 3.17% to $1.22. Freightways collected 26c or 1.81% to $14.60; Hallenstein Glasson was up 20c or 2.26% to $9.90; and Steel & Tube gained 2.5c or 3.79% to 68.5c. Tower increased 5.5c or 2.92% to $1.94, Comvita rose 4c or 5.71% to 74c, and Green Cross Health was up 4c or 3.08% to $1.34.
Data analytics company Blackpearl Group increased 8.5c or 8.33% to $1.10 after reporting a 114% rise in annual recurring revenue (ARR) to $23.7m at the end of December. The revenue increased 22% from the previous quarter. Blackpearl said it is entering 2026 with strong momentum and “we maintain a clear trajectory toward our next major milestone of $50m ARR.” Its data-as-a-service model was emerging as a high-quality recurring revenue stream. Infant formula supplier a2 Milk edged up 1c to $9.78 after announcing changes to its executive leadership team. Jaron McVicar, chief legal and sustainability officer and company secretary, takes over as managing director for Australia and NZ after the resignation of Eleanor Khor. McVicar also retains the sustainability role. Kate Tidbury, the group head of legal, becomes the chief legal officer and company secretary. Chief financial officer David Muscat leads the corporate strategy function.
Software firm ikeGPS, down 0.005c to $1.04, reported a 38% increase in platform subscription revenue to $14.1m for the nine months ending December compared with the corresponding period. Total revenue was up 7% to $19.8m, and ikeGPS confirmed its full-year guidance of 35% or more growth in subscription revenue and operating earnings (ebitda), breaking even. The annualised subscription revenue to the end of December was $21.1m, up 35%, and ikeGPS had $32.3m in cash, with no debt.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 17 points lower at 8916.
- close [Morningstar with AAP]: Australia's share market has traded lower for a second straight session, but pared early losses as major miners BHP and Rio Tinto swung positive by the close.
The S&P/ASX200 slipped 6.4 points lower on Thursday, down 0.07 per cent to 8,927.5, as the broader All Ordinaries lost 13.7 points, or 0.15 per cent, to 9,236.9.
Fears of higher interest rates continued to weigh on the bourse after Wednesday's inflation surprise, dragging most rate-sensitive sectors into the red, while US threats of military intervention in Iran further dampened investor sentiment.
"The overarching concern here is the outlook for interest rates and the potential for the Reserve Bank to lift rates next week," Moomoo market strategist Michael McCarthy told AAP.
"Now, we have seen a bit of a turnaround in the market over the course of the trading day - in the first hour and a half, the market was belted and was down almost one per cent, but we've seen a bit of a scramble back since."
Only basic materials, energy stocks and consumer staples stocks ended the session clearly higher.
Raw materials overcame an early dip to outperform the other segments, as gold topped $US5,591 ($A7,887) an ounce, while Rio Tinto and BHP bounced late in the session after Beijing cut red tape for China's property developers.
Rare earths and battery minerals producers came under pressure, after the Trump administration flagged it might abandon a price floor for US critical minerals projects.
The bad news was compounded for mineral sands producer Iluka, which plummeted more than 10 per cent, after it flagged $565 million in pre-tax hits to its 2025 financial results.
Energy stocks rose 0.9 per cent as oil prices traded at four-month highs as the US threatened further military intervention in Iran over a new nuclear weapons deal.
Woodside and Santos edged higher, while coal producers broadly improved and uranium stocks' upward momentum continued.
The financial sector eased 0.3 per cent, with a mixed performance from the big four as CBA and Westpac lost ground, while NAB and ANZ advanced.
ASX-listed tech stocks made up the weakest sector with a 1.9 per cent slump, with WiseTech, Xero and Technology One all down two per cent or more.
Consumer discretionary stocks were also under pressure, slipping 0.8 per cent as investors repriced for likely higher incoming borrowing costs.
The Australian dollar is buying 70.87 US cents, up from 70.04 US cents on Wednesday at 5pm, soaring to three-year highs on greenback weakness, strong commodity prices, and narrowing odds of a Reserve Bank interest rate cut next week.
ON THE ASX:
The S&P/ASX200 lost 6.4 points, or 0.07 per cent, to 8,927.5
The broader All Ordinaries fell 13.7 points, or 0.15 per cent, to 9,236.9
The NZX 50 Lost -24.36 points (-0.18%) to 13324.25
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended mixed. The DJIA climbed 0.1% to 49,071.56, the S&P 500 dropped 0.1% to 6,969.01 and the Nasdaq slipped 0.7% to 23,685.12.
Among S&P 500 companies, the top three gainers were Southwest Airlines Co LUV surging 18.70%, Royal Caribbean Group RCL jumped 18.65%, and Meta Platforms Inc META lifted 10.40%.
The biggest decliners were Las Vegas Sands Corp LVS which dropped 13.96%, United Rentals Inc URI fell 13.08%, and First Solar Inc FSLR lost 10.14%.
Asia
Chinese shares closed mixed. The benchmark Shanghai Composite Index added 0.2% to 4,157.98 and the Shenzhen Composite Index slipped 0.5% to 2,704.80.
Hong Kong shares ended higher. The benchmark Hang Seng Index gained 0.5% to 27,968.09.
Japanese shares ended flat. The Nikkei Stock Average was unchanged at 53,375.60.
India shares ended higher. The BSE SENSEX added 0.3% to 82,566.37.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index gained 0.2% to 10,171.76. In Europe, shares closed mixed. The Germany's DAX dropped 2.1% to 24,309.46, and the France's CAC 40 gained 0.1% to 8,071.36
