The S&P/NZX 50 Index was on a steady slide for the second day running, closing at 11,826.15 – down 29.38 points or 0.25 per cent. Photo / NZME
The New Zealand sharemarket marked time as it waited for stronger leads from central banks in their fight against inflation – with local retail card spending proving stronger than expected.
The S&P/NZX 50 Index was on a steady slide for the second day running, closing at 11,826.15 – down 29.38 points or 0.25 per cent.
There were 59 gainers and 69 decliners over the whole market on volume of 23.81 million share transactions worth $108.32 million.
Greg Smith, head of retail with Devon Funds Management, said there are mixed messages coming from central banks.
“Jerome Powell (chair of the US Federal Reserve) spooked the markets with his chat about interest rates going higher for longer. The Bank of Canada has become the first central bank to pause its rates hike and the Reserve Bank of Australia has indicated it might be nearing the end of its increases.
“At home, the retail card spending was surprisingly resilient,” said Smith. “We keep hearing about the need to tighten belts with cost of living pressures and people rolling off low mortgages.
“But we haven’t seen consumer spending falling off the cliff and people seem to be keeping up debt payments. The increasing interest rates haven’t deterred Kiwis from getting their cards out – even with flooding and a cyclone in February. But you’d have to think the retail space is going to be trickier,” he said.
The Warehouse Group and KMD Brands are reporting their latest financial results within a fortnight, and Smith said this will be a good indication on how the sector is faring with the period including Christmas and holiday shopping.
Stats NZ revealed retail card spending remained steady at $6.6 billion in February compared with January, when adjusted for seasonal effects. The Reserve Bank has said it is looking for signs that demand is easing in the economy to assess how high rates need to go.
The Bank of Canada has implemented a “conditional pause” on further rate increases to allow monetary tightening to work through the economy, and as long as inflation continues to decline.
The consumer price index in Canada has fallen from a 39-year high of 8.1 per cent in June to 5.9 per cent in January, and officials see it hitting 3 per cent by the middle of this year.
At home, the market was led down by heavyweights Fisher and Paykel Healthcare declining 18c to $25.90; Mercury Energy decreasing 12c or 1.87 per cent to $6.30; Mainfreight shedding $1.15 to $71.05; and Auckland International Airport down 7c to $8.54.
Ebos Group, soon to enter the S&P/ASX 300 Index, gained 50c to $45.75 on trade worth $21.85m and headed back towards its high of $46.30 achieved on January 17.
Meridian Energy was up 7.5c to $5.255 after setting the interest rate for its $200m five-and-a-half-year green bond at 5.91 per cent. Fellow energy stocks Genesis was down 4c to $2.85 and Manawa declined 8c to $4.90.
In the property sector, Precinct was up 2.7c or 2.15 per cent to $1.28; Investore was down 3c or 2.01 per cent to $1.46 and Property for Industry declined 4c or 1.73 per cent to $2.27.
Skellerup Holdings was down 12c or 2.3 per cent to $5.10; Napier Port shed 5c or 1.75 per cent to $2.80; Synlait Milk declined 4c to $3.29; Tourism Holdings decreased 5c to $4.04; and Vista Group was down 4c or 2.8 per cent to $1.39.
Meal kit company My Food Bag reached a new low after falling 1.5c or 6.12 per cent to 23c. It has fallen nearly 80 per cent over the past 12 months.
After two days of rises, Pushpay Holdings was pushed back 3c or 2.34 per cent to $1.25 as shareholders hopefully wait for an increased takeover bid from investment firms Sixth Street and BGH Capital.
Vulcan Steel was down 7.5c to $8.80, and NZME declined 4c or 3.51 per cent to $1.10 after both stocks went ex-dividend.
Other decliners were Steel & Tube down 5c or 3.94 per cent to $1.22; KMD Brands shedding 2c or 1.85 per cent to $1.06; Serko falling 10c or 4.17 per cent to $2.30; Rakon decreasing 3c or 3.16 per cent to 92c; and Eroad down 2c or 2.53 per cent to 77c.
Scales Corp, down 10c or 2.94 per cent to $3.30, announced Mike Petersen as the new chair to replace Tim Goodacre who is retiring. Petersen was previously chair of Beef + Lamb New Zealand and the country’s special agricultural trade envoy for six years.
On the plus side, Millennium & Copthorne Hotels NZ increased 7c or 3.32 per cent to $2.19; Channel Infrastructure, also ex-dividend, gained 3c or 2.13 per cent to $1.44; Scott Technology was up 7c or 2.5 per cent to $2.87; and T&G Global added 6c or 2.84 per cent to $2.17.