NZ Sharemarket Flat, Up Only 0.05% As Investors Wait

The New Zealand sharemarket was flat as investors waited for a rush of important earnings results from the US and the Federal Reserve’s latest stance on inflation and interest rates. The S&P/NZX 50 Index traded in a narrow range of 12,726.35 and 12,783.97 before closing at 12,770.3, up 5.9 points or 0.05%. There were 76 decliners and 59 gainers on the main board with 42.9 million shares worth $136.3m changing hands.

Across the Tasman, Australian inflation reached 4.6% at the end of March, with the consumer price index rising 1.1% from the previous quarter, mainly driven by the surge in fuel prices. The Australian Bureau of Statistics said the price of petrol soared 32.8% in March, lifting the cost of transportation by 9.2% in just 30 days. It was the highest inflation rate since September 2023 following the rebound from the covid pandemic. The S&P/ASX 200 Index was down 0.39% to 8,676.7 points at 6pm NZ time.

Brent Crude oil was higher at US$111.40 (NZ$189.99) a barrel, and analysts were suggesting Iran had between 12 and 22 days before its unsold oil reaches storage capacity, forcing production shut-ins that could permanently damage its ageing, low pressure fields.

At home, market leader Fisher and Paykel Healthcare rebounded 53c to $36.25, and Contact Energy was up 9c to $9.32. There was weakness in the property sector. Argosy decreased 2c or 2.28% to $1.07; Stride declined 3.5c or 3.1% to $1.09; and Vital Healthcare Trust was down 3c to $1.86. Property for Industry, however, was up 2c to $2.31. Ryman Healthcare was down 5c or 2.3% to $2.12, a2 Milk shed 16c or 1.8% to $8.72; Synlait decreased 3.5c or 7.78% to 41.5c; and Serko fell 8c or 4.52% to $1.69. KMD Brands was down 0.004c or 6.15% to 6.1c, near the level of its rights offer. Other decliners were Tower down 3.5c or 1.73% to $1.98; Tourism Holdings shedding 6c or 2.86% to $2.04; SkyTV decreasing 7c or 2.15% to $3.18; and Santana Minerals falling 5.5c or 7.19% to 71c.

My Food Bag increased 2c or 7.69% to 28c after telling the market it was reviewing its ownership and capital structure. Vulcan Steel increased 15c or 2.46% to $6.25; ikeGPS gained 3c or 2.52% to $1.22; and Chatham Rock Phosphate was up 0.007c or 11.48% to 6.8c

Dairy giant Fonterra has named two interim leadership changes following the promotion of Richard Allen to chief executive from May 1. Elisa Giusti, based in Chicago, becomes President Global Ingredients Growth, and Gaby Amade, based in Dubai, takes on the role of President Global Ingredients Sales and Operations. Fonterra Co-operative's share price was down 8c or 1.72% to $4.57, and Fonterra Shareholders’ Fund declined 30.9c or 4.61% to $6.40.

Taiko Critical Minerals, up 0.005c or 2.44% to 20c, said in a quarterly update it had signed conditional agreements to buy two properties, totalling 302ha, on the West Coast Barrytown Flats that contain the southern extension of the Coates South mineral resource. Taiko closed the March quarter with $2.85m in cash.

Rua Bioscience, unchanged at 3c, said in an update it had 17 products in five markets and recently established genetics in Canada, the largest cannabis market outside the United States. Rua said it had growth opportunities in NZ, Germany, Czechia and the UK, but the Australian market had contracted as the Therapeutic Goods Administration conducted a review of the safety and regulatory oversight of unapproved medicinal cannabis products

Source: Business Desk

Ahead of the local open SPI futures were 45 points lower at 8625.

- close [Morningstar with AAP]: Australian shares have fallen for a seventh straight session as sticky inflation made worse by the Middle East energy crisis rose to its highest rate in three years.

The S&P/ASX200 fell 23.7 points on Wednesday, down 0.27 per cent, to 8,687, while the broader All Ordinaries slipped 19.3 points lower, or 0.22 per cent, to 8,915.7.

The consumer price index came in at 4.6 per cent in the year to March, lower than expected but spiking sharply from February and at levels not seen since 2023.

"Today's inflation update for March has come in hot, but not as hot as feared," IG market analyst Tony Sycamore said.

"With both the headline and trimmed mean annual measures sitting uncomfortably above the midpoint of the Reserve Bank's two to three per cent target band, there remains a strong probability the Reserve Bank will act on its hawkish bias and deliver a 25-basis-point rate hike next week to 4.35 per cent."??

This would be the RBA's third hike in 2026, completely unwinding the 75 basis points of cuts in 2025.

Energy an utilities stocks outperformed the bourse as oil prices firmed, following reports the US is preparing for an extended blockade of the Hormuz Strait, as its conflict with Iran enters a third month.

Woodside shares beat out the sector, up two per cent after its quarterly update flagged improved earnings on the back of higher liquefied natural gas prices.

Basic materials faded 0.3 per cent as mega miners BHP and Rio Tinto dipped lower.

Goldminers were a mixed bag as the precious metal eased to $US4,584 an ounce as the grim outlook for global inflation weighed on hopes of US interest rate cuts.

The heavyweight financials sector dropped 0.6 per cent, as CommBank led three of its big four competitors into the red with a 1.4 per cent slip to $172.18.??

ANZ bucked the trend, eking a 0.4 per cent improvement to $36.18 after agreeing to buy out French payments joint venture partner Worldline.

ANZ reports Thursday, kicking off a huge couple of weeks for Australian banks.

"The upcoming results will be closely followed by investors as an important barometer for borrower resilience and the health of the broader economy," Sharesies head of capital markets Jacki Neumann said.

"Recent updates from Westpac and NAB have already set a cautious tone, highlighting a few key shifts - margin compression, rising impairment charges, and capital buffering."

Healthcare stocks were under pressure, dropping 1.4 per cent as blood plasma giant CSL tumbled to its lowest price since August 2017.

More than 44 per cent of the segment's value has been wiped since August.

In company news, Ooh!Media shares rocketed by almost a third after Pacific Equity Partners lobbed a non-binding takeover offer for the advertising and media company.

Early-childhood education provider G8 Education was banished to the naughty corner after plummeting more than 31 per cent on news it had suspended operations at 40 childcare centres.

Codan was the best performer of the top-200, soaring more than 15 per cent after upgrading its earnings forecast, now targeting a net profit after tax of roughly $170 million.

The Australian dollar is buying 71.58 US cents, down slightly from 71.64 US cents on Tuesday.

ON THE ASX:

The S&P/ASX200 dropped 23.7 points, or 0.27 per cent, to 8,687

The broader All Ordinaries lost 19.3 points, or 0.22 per cent, to 8,915.7

The NZX 50 Lost -16.66 points (-0.13%) to 12753.64

Companies Holding Annual General Meeting (ASX 300):

Iluka Resources Limited

[Morningstar with Dow Jones]:

U.S. stocks ended mixed. The DJIA declined 0.6% to 48,861.81, the S&P 500 was unchanged at 7,135.95 and the Nasdaq was unchanged at 24,673.24.

Among S&P 500 companies, the top three gainers were NXP Semiconductors NV NXPI surging 25.55%, Generac Holdings Inc GNRC jumped 16.49%, and Intel Corp INTC lifted 12.10%.

The biggest decliners were Teradyne Inc TER which dropped 19.54%, Robinhood Markets Inc HOOD fell 13.34%, and GE HealthCare Technologies Inc GEHC lost 13.00%.

Asia

Chinese shares closed higher. The benchmark Shanghai Composite Index climbed 0.7% to 4,107.51 and the Shenzhen Composite Index lifted 1.7% to 2,772.50.

Hong Kong shares ended higher. The benchmark Hang Seng Index rose 1.7% to 26,111.84.

Japanese shares ended lower. The Nikkei Stock Average slipped 1% to 59,917.46.

India shares ended higher. The BSE SENSEX gained 0.8% to 77,496.36.

Europe

Stocks in the U.K. finished lower. The FTSE 100 Index fell 1.2% to 10,213.11. In Europe, shares closed lower. The Germany's DAX fell 0.3% to 23,954.56, and the France's CAC 40 slipped 0.4% to 8,072.13