Market Announcements
Market Summary
New Zealand share prices rallied Friday after a raft of index changes for key stocks, and a strong business confidence survey helped boost sentiment. The S&P/NZX 50 Index gained 76.63 points (0.58%) to 13,333.40 after being up by almost 100 points at one stage. Turnover was heavy with 105.6 million shares, worth $370.2m trading, reflecting funds re-weighting their portfolios in line with index changes. There were 85 rises and 55 falls on the main board.
As expected, the Bank of Japan (BoJ) raised short-term interest rates to their highest level in 30 years to combat inflation after decades of deflation. The bank raised its policy rate by 0.25 percentage points to around 0.75%.
Locally, index upweightings to the NZSX50 added fizz and volume to the market. Vital Healthcare increased its index weighting after its recent equity raising, and it was a similar story for SkyCity and Precinct. Vital, which is also due to enter one of the FTSE ESPA Nareit indices, ended the day down 3.5c at $1.94 with 18.6 million shares trading.
SkyCity gained 4c to 89c with 7.6 million shares trading, while Precinct dropped a cent to $1.16 with 14.6 million shares going through.
News that the ANZ’s business confidence reading hit its highest level in 30 years in December helped buoy the market. ANZ said a net 74% of respondents expected better business conditions, up seven points. Businesses’ expected “own activity” rose seven points to net 61%, also its highest level in 30 years.
Among the big names to gain were Fisher and Paykel Healthcare up 19c to $37.10, Ebos up 60c to $27.53 and Infratil up 28c at $10.98. Among the smaller issues, Eroad rallied by nine cents to $1.20. Trade Window, which listed on the ASX on Friday, dropped 2c to 29c.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 11 points higher at 8643.
- close [Morningstar with AAP]: Australia's share market has clawed back some losses but still snapped a three-week winning streak as energy stocks had their worst week since April.
The S&P/ASX200 rose 40 points on Friday, up 0.47 per cent, to 8,628.2, as the broader All Ordinaries gained 49.6 points, or 0.56 per cent, to 8,925.3.
Over the week, the top-200 fell almost 70 points, or 0.8 per cent.
Three trading days out from Christmas there was still no sign of a Santa rally, IG market analyst Tony Sycamore said.
"We're still finishing with a down week, and that snaps a three week winning streak for the ASX200," he told AAP.
"We do have late late Santa Claus rallies, even as late as post-Boxing Day, but I'm looking for some something which stands out a little bit more than today, and it's just not there at this point of time."
ASX-listed tech stocks and financials led eight of 11 local sectors higher, while raw materials dipped 0.6 per cent on weakness in mining giants BHP and Fortescue.
Gold miners were broadly higher as the precious metal hovered near all-time highs, trading at $US4,320 ($A6,540) an ounce, but it didn't help Northern Star, which fell more than three per cent.
Energy stocks snapped a four-session red streak, but have dropped 5.7 per cent since Monday, its worst week since April when US Liberation Day tariff announcements pummelled equities markets and global growth expectations.
Oil prices are hanging on at seven-month lows, as investors weigh a global supply glut against ongoing conflict in Ukraine and a US naval blockade on Venezuelan oil tankers.
Uranium stocks bounced back on Friday after suffering for most of the week, laser enrichment technology Silex Systems and miner Paladin Energy each up more than nine per cent and taking out two of the top-200's best three performances on Friday.
Australia's heavyweight financials sector returned to form, securing its highest weekly close in a month as three of four big banks traded higher, led by a 2.8 per cent boost to CBA shares to $157.75.
ANZ slipped less than 0.1 per cent, as the Federal Court tacked an extra $10 million onto a record $240 million fine for widespread misconduct and systemic failures.
Investment giant Macquarie Group traded 1.5 per cent higher despite its Macquarie Securities arm copping a $35 million fine for misreporting millions of short sales over several years.
ASX-listed tech stocks outperformed the broader market, the sector lifting 2.2 per cent as WiseTech, Xero, Technology One and Life360 surged.
Data centre player NextDC bucked the trend with a 1.7 per cent drop, tracking with lingering concerns about artificial intelligence returns.
It was a mixed week for consumer-facing sectors with staples fading 1.5 per cent, while discretionaries clawed back 0.8 per cent but remains on par with its value in May after a weak fourth quarter.
Droneshield was the top-200's best performer, up 11.7 per cent on Friday and more than 33 per cent for the week, as dip buyers pounced on a $50 million contract announced on Tuesday.
Elsewhere in defence, Austal sailed 5.7 per cent higher after winning a contract extension to build two additional Evolved Cape-class Patrol Boats for the Australian Border Force.
Healthcare stocks had their first positive day in a week, as 4D Medical soared more than 20 per cent after a major US medical centre adopted its CT scan technology.
The Australian dollar is buying 66.03 US cents, up from 66.03 US cents on Thursday at 5pm.
ON THE ASX:
The S&P/ASX200 rose 40 points, or 0.47 per cent, to 8,628.2
The broader All Ordinaries gained 49.6 points, or 0.56 per cent, to 8,925.3
The NZX 50 added 50.56 points (0.38%) to 13383.96
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended higher. The DJIA climbed 0.4% to 48,134.89, the S&P 500 lifted 0.9% to 6,834.50 and the Nasdaq rose 1.3% to 23,307.62.
Among S&P 500 companies, the top three gainers were Carnival Corp CCL surging 9.84%, Moderna Inc MRNA jumped 8.89%, and SanDisk Corp SNDK lifted 8.26%.
The biggest decliners were Lamb Weston Holdings Inc LW which dropped 25.94%, Nike Inc NKE fell 10.54%, and Lowe's Companies Inc LOW lost 2.91%.
Asia
Chinese shares closed higher. The benchmark Shanghai Composite Index added 0.4% to 3,890.45 and the Shenzhen Composite Index gained 1% to 2,464.89.
Hong Kong shares ended higher. The benchmark Hang Seng Index rose 0.8% to 25,690.53.
Japanese shares ended higher. The Nikkei Stock Average added 1% to 49,507.21.
India shares ended higher. The BSE SENSEX gained 0.5% to 84,929.36.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index lifted 0.6% to 9,897.42. In Europe, shares closed mixed. The Germany's DAX rose 0.4% to 24,288.40, and the France's CAC 40 was unchanged at 8,151.38
