Market Announcements
Market Summary
Sharemarkets, both here and offshore, lost momentum yesterday as the impact of rising inflation preyed on investors’ minds. The S&P/NZX 50 Index had a bumpy ride, reaching a morning intraday high of 13,120.91 before falling and closing at 13,063.06, down 17.27 points or 0.13%. There were 59 gainers and 78 decliners on the main board, with turnover increasing to 39.2 million shares worth $206.8m.
Infratil, decreasing 23c to $15.15, and Fisher and Paykel Healthcare, down 13c to $34.15, were heavily traded, with $41.16m and $37.28 worth of their shares changing hands. A hotter-than-expected April consumer price index in the United States slowed markets. Annual inflation reached a three-year high of 3.8% after a 0.6% gain in April, and rising fuel prices accounted for 40% of the monthly increase.
Across the Tasman, the S&P/ASX 200 Index was down 0.46% to 8,630.7 points at 6pm NZ time. The banks were weaker after the Federal Budget changed the rules on negative gearing and capital gains tax discounts in the property investment market. CBA, more heavily into mortgage lending to investors, had fallen 10.36% to A$153.79 (MNZ$187.3).
On the NZX, ANZ decreased $1.10 or 2.58% to $41.60, and Westpac declined $2.02 or 4.53% to $42.58.
In a report on NZ’s economic outlook, ANZ said the conflict in the Middle East represents a negative national income shock for New Zealand. "As a net importer of petroleum products, our terms of trade are likely to take a hit even if key export prices remain robust (so far, so good for meat and dairy).” ANZ has forecast that the Brent Crude oil price will be under US$90 (NZ$151.42) a barrel by the end of the year, and there will be no fuel rationing. Annual inflation will be 4.4% in the second quarter and 4.1% by the end of the year. Economic growth this year will be 1.5%, increasing to 2.6% and 2.7% in 2027 and 2028, respectively. Unemployment will reach 5.5% in the second quarter and 5.8% in the fourth quarter. ANZ expects the Reserve Bank to hike the official cash rate in July, September and October, taking it to 3%. The NZ dollar should strengthen to A85c against the Australian dollar by the end of the year and A87c by the end of next year.
Spark declined 6c or 2.9% to $2.01; Gentrack was down 13c or 3.15% to $4; Auckland International Airport eased 11c to $8.28; and Scales Corp decreased 28c or 4.41% to $6.07. Other decliners were AFT Pharmaceuticals, falling 25c or 6.58% to $3.55; The Warehouse, easing 2c or 3.1% to 62.5c; Michael Hill, down 1.5c or 3.41% to 42.5c; and Eroad, losing 5.5c or 5.34% to 97.5c. Port of Tauranga was up 11c to $8.31; Channel Infrastructure gained 6c or 1.92% to $3.19; and Fonterra Shareholders’ Fund increased 24c or 3.58% to $6.94.
The energy sector was stronger with Mercury rising 20c or 2.9% to $7.10; Contact increasing 27c or 2.8% to $9.90; and Vector up 9c or 1.78% to $5.14. In the property market, Stride increased 4.5c or 4.04% to $1.16; Property for Industry was up 5c or 2.1% to $2.43; and Kiwi was down 2.5c or 2.8% to 94.5c.
Cancer diagnostics company Pacific Edge, down 0.006c or 3.45% to 16.8c, has completed a placement for $25.4m at 17c a share. The company is now making a rights offer to raise up to $6m. Radius Residential Care was up 1.5c or 3.9% to 40c after reporting a 14% increase in full-year revenue to $202.28m and a 34% rise in net profit to $9.5m. It is paying an increased final dividend of 1.2c a share on June 11. AoFrio decreased 0.004c or 5.13% to 7.4c after reporting a 28.1% fall in revenue to $17.2m for the three months ending March compared with the same period last year. Operating earnings (ebitda) recorded a net loss of $400,000 compared with the previous gain of $1.5m. AoFrio had $1.4m in cash.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 33 points lower at 8601.
- close [Morningstar with AAP]: Australian shares have fallen for a fourth straight session, as CommBank led the big banks lower, eclipsing a broadly positive session elsewhere.
The S&P/ASX200 fell 40.3 points on Wednesday, down 0.46 per cent, to 8,630.4, as the broader All Ordinaries lost 28.9 points, or 0.32 per cent, to 8,880.7.
Commonwealth Bank shares had their worst day ever, tumbling 10.4 per cent to $153.67 after an interim profit miss, rising interest rates, and investment tax reforms loomed over its growth outlook.
The move topped its previous daily downside record of 10 per cent, logged in the days after COVID-19 was declared a global pandemic in March 2020.
The trading update was probably the most important catalyst for the dramatic sell off, Capital.com senior market analyst Kyle Rodda said.
"It doesn't take much for the sector to disappoint, because the banks' valuations are still quite rich and profits are one thing, and then the narrative has also been around provisions and how the energy crisis may worsen their financial position," Mr Rodda told AAP.
"There's a lot of speculation that maybe the budget had something to do with it, but I would suspect most of that was already priced in."
The heavily-weighted financials sector dropped more than four per cent, enough to push the major indices into the red despite the other 10 segments making gains.
Meanwhile, mining giant BHP hit a record $62.30 on the back of soaring copper prices, encouraging economic data from China and renewed hype around the global data centre build-out.
Gold miners were mostly higher, as the precious metal held its ground near $US4,710 ($A6,509) an ounce, while rare earths producers improved and lithium stocks came off.
The energy sector improved by 0.3 per cent, with fossil fuel stocks advancing after oil prices firmed overnight, amid reports Iran is tightening its grip on the Hormuz Strait, a key transit lane for a fifth of global crude and gas shipments.
Uranium stocks were under pressure, as Paladin Energy value tumbled by more than a tenth despite a swing to profit in the March quarter, as investors mulled weakening cash generation and high capital costs.
Consumer discretionary stocks outperformed the market, up almost three per cent after gambling machine maker Aristocrat Leisure rocketed higher on solid interim profits and extended share buybacks.
Staples rose 0.4 per cent, tracking with modest gains for Woolworths, Coles and Dan Murphy's owner Endeavour.
The Federal Court will hand down its first judgement in the ACCC's blockbuster case against Coles and Woolies over misleading discount allegations, with Coles fronting up on Thursday.
Also on Thursday, GrainCorp and accounting software Xero will hand down interim results.
The Australian dollar is buying 72.36 US cents, up slightly from 72.12 US cents on Tuesday at 5pm.
ON THE ASX:
The S&P/ASX200 dropped 40.3 points, or 0.46 per cent, to 8,630.4
The broader All Ordinaries fell 28.9 points, or 0.32 per cent, to 8,880.7
The NZX 50 Lost -38.77 points (-0.30%) to 13024.29
Companies Holding Annual General Meeting (ASX 300):
Oohmedia Limited
Companies commencing Ex-Dividend Trading Today (ASX 300):
FleetPartners Group Limited
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended mixed. The DJIA fell 0.1% to 49,693.20, the S&P 500 added 0.6% to 7,444.25 and the Nasdaq gained 1.2% to 26,402.34.
Among S&P 500 companies, the top three gainers were Ford Motor Co F surging 13.18%, ON Semiconductor Corp ON jumped 11.14%, and Coherent Corp COHR lifted 7.94%.
The biggest decliners were AppLovin Corp APP which dropped 7.57%, FactSet Research Systems Inc FDS fell 6.51%, and Constellation Energy Corp CEG lost 6.37%.
Asia
Chinese shares closed higher. The benchmark Shanghai Composite Index gained 0.7% to 4,242.57 and the Shenzhen Composite Index added 1.6% to 2,949.07.
Hong Kong shares ended higher. The benchmark Hang Seng Index rose 0.2% to 26,388.44.
Japanese shares ended higher. The Nikkei Stock Average lifted 0.8% to 63,272.11.
India shares ended higher. The BSE SENSEX rose 0.1% to 74,608.98.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index added 0.6% to 10,325.35. In Europe, shares closed higher. The Germany's DAX gained 0.8% to 24,136.81, and the France's CAC 40 climbed 0.4% to 8,007.97
