Market Announcements
Market Summary
The New Zealand sharemarket shrugged off weakness offshore, resulting from another technology sell-down, with a late rise and a gain of more than 0.5%. The sharp lift in the brokers’ matching session resulted in the S&P/NZX 50 Index closing at 13,694.68, up 79.90 points or 0.59% after reaching an intraday low of 13,574.82. The index was down 0.6% for the week. Trading climbed to 52.3 million shares worth $144.2 million because of rebalancing in the S&P/NZX High Dividend and S&P Global Clean Energy indices. There were 65 gainers and 69 decliners on the main board.
The June Consumer Price Index (CPI) is released on Tuesday. ANZ expects headline inflation for the year ending June to hit 4%, up from 3.1% in the first quarter and slightly above the Reserve Bank’s forecast of 3.9%. The second-quarter CPI is expected to increase by 1.4%, largely driven by fuel prices. “For the Reserve Bank, it is not so much the direct impact of higher fuel prices on headline inflation that is keeping them awake at night. “Rather, it is the risk that the cost shock spills over into other parts of the CPI basket, lifting inflation expectations and generating a broader inflation impulse that could prove difficult to contain,” ANZ said.
Local stocks Fisher & Paykel Healthcare was up 28c to $39.93; Meridian Energy added 8c to $5.62; Fletcher Building increased 8c or 2.18% to $3.75; and Chorus gained 11c to $9.62. In the retail sector, Briscoe was up 12c or 2,43% to $4.81, and Hallenstein Glasson gained 15c to $10.55.
SkyCity rose 3.5c or 6.54% to 57c after telling the market that the sale of 99 Albert St and properties on Victoria St in Auckland for $74.5m was now unconditional. The purchase is a joint venture between Christchurch funds manager Mainland Capital and Russell Property Group. Solly said the market was now watching out for the sale of the Grand Hotel, rumoured to be in the vicinity of $250m. That would significantly reduce SkyCity’s $500m debt, and the company has indicated that, once the debt is at a comfortable level, it would resume paying a dividend. Ryman Healthcare increased 5c or 2.39% to $2.23; Vulcan Steel added 12.5c or 2.07% to $6.15; Steel & Tube gained 1.5c or 4.61% to 35.5c; and Gentrack rebounded 11c or 3.03% to $3.74.
Among dividend-paying property stocks, Investore was up 2.5c or 2.35% to $1.09, and Kiwi gained 1.5c to 95c. Property for Industry was up 6c or 2.58% to $2.39 after refinancing its loan facilities with ANZ Bank NZ, BNZ, Westpac NZ and Commonwealth Bank of Australia, with maturity between July 2029 and 2031. The bank facilities were reduced from $675m to $600m because of the strength of Property for Industry’s balance sheet.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 1 points lower at 8808.
- close [Morningstar with AAP]: Australia's share market has fallen for a second straight week as mining sector selling continued and ongoing attacks between the US and Iran weighed on global growth hopes.
The S&P/ASX200 fell 44 points on Friday, down 0.5 per cent, to 8,796.7, while the broader All Ordinaries lost 58.1 points, or 0.64 per cent, to 8,978.8.
The top-200 narrowed some early losses in the final minutes of trade, but ultimately ended the week 0.11 per cent lower.
Miners weighed heavily as gold and copper prices slumped, while energy stocks advanced as oil prices clung to their recent gains as the Persian Gulf conflict dragged on.
"It is the ASX200's sixth-straight week around this 8800 area and it's not a surprise when we've got so many concerns out there," IG market analyst Tony Sycamore told AAP.
"The conflict in the Middle East, we've got inflation still too high, we've got the Reserve Bank still with a hiking bias, and when company news hits the biggest stock in the index, it adds up to a pretty soggy old end for the week."
BHP shares tumbled 2.7 per cent to $57.54, as strike action at Port Hedland and downgraded copper production guidance raised valuation concerns, prompting a price target downgrade from UBS.??
Gold stocks were a sea of red as the precious metal struggled to hold above $US4,000 ($A5,725) an ounce, with Regis and Westgold under particular pressure after their trading updates failed to deliver good news.
Energy stocks rallied as oil prices hung onto their recent gains after five days of strikes and retaliation between the US and Iran.
Financials tipped 0.1 per cent lower as insurers and investment firms helped counterbalance a weak day for the banks.
Defensive sectors also soared on Friday, with consumer staples, communications and utilities stocks all gaining one per cent or more in the week's final session.
Coles did some heavy lifting in the staples rally, soaring almost three per cent after walking away from a plan to buy pet care company and Petbarn owner Greencross for roughly $4 billion.
The health care sector fell 0.3 per cent, as Pro Medicus, Telix Pharmaceuticals and Mesoblast sold off sharply.
AMP was the S&P/ASX200's best performer as it continued its post-earnings rally to above $2 per share, its highest price since February 2020.
In other company news, Zip Co dropped more than five per cent after announcing it would retreat from its New Zealand business to focus on markets in the US and Australia.
The Australian dollar is buying 69.86 US cents, down from 70 US cents on Thursday at 5pm.
Looking ahead, the Australian Bureau of Statistics will hand down employment data on Thursday in an otherwise quiet week for local data.
ON THE ASX:
The S&P/ASX200 fell 44 points on Friday, or 0.5 per cent, to 8,840.7
The broader All Ordinaries slipped by 58.1 points, or 0.64 per cent, to 8,978.8
The NZX 50 Lost -60.57 points (-0.44%) to 13634.11
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended lower. The DJIA fell 0.8% to 52,146.42, the S&P 500 declined 1% to 7,457.69 and the Nasdaq slipped 1.4% to 25,520.24.
Among S&P 500 companies, the top three gainers were The Travelers Companies Inc TRV surging 9.22%, Seagate Technology Holdings PLC STX jumped 5.62%, and Centene Corp CNC lifted 3.97%.
The biggest decliners were Intuitive Surgical Inc ISRG which dropped 14.02%, Cadence Design Systems Inc CDNS fell 9.18%, and Synopsys Inc SNPS lost 7.80%.
Asia
Chinese shares closed lower. The benchmark Shanghai Composite Index slipped 3% to 3,764.15 and the Shenzhen Composite Index dropped 5.2% to 2,434.08.
Hong Kong shares ended lower. The benchmark Hang Seng Index declined 1.8% to 24,562.24.
Japanese shares ended lower. The Nikkei Stock Average fell 4% to 64,141.12.
India shares ended higher. The BSE SENSEX lifted 1.2% to 78,151.45.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index rose 0.3% to 10,600.37. In Europe, shares closed lower. The Germany's DAX slipped 0.3% to 24,830.98, and the France's CAC 40 fell 0.5% to 8,338.81
