"The market bounced back after digesting the OCR rise of 50 basis points – the highest in 22 years - and realising the Reserve Bank was not so hawkish. The bank hasn't changed its overall outlook – it just changed the timeline for getting there," Smith said.
The Reserve Bank said it remained focused on ensuring that current high consumer price inflation does not become embedded into longer-term inflation expectations. A larger move now also provided more policy flexibility ahead in light of the highly uncertain global economic environment.
Wall Street was stronger overnight on Wednesday as bond yields fell and the latest reporting season began. The US 10 Year Treasury Note yield was down 2.7 basis points to 2.67 per cent after rising for the previous seven days; while the New Zealand 10 Year Government Bond yield declined 1.2 points to 3.44 per cent.
The battered Nasdaq Composite, with its high-growth technology stocks, rose 2.03 per cent to 13,643.59 points; Dow Jones Industrial Average increased 1.01 per cent to 34,564.59; and S&P 500 was up 1.12 per cent to 4446.59.
At home, market leader Fisher and Paykel Healthcare rebounded from its two-year low, rising 20c to $22.80 on trade worth $15m.
Ebos Group increased 20c to $42; Ryman Healthcare rose 31c or 3.4 per cent to $9.43; Skellerup Holdings was up 10c to $5.76; a2 Milk rebounded 10c or 1.98 per cent to $5.15; and Air New Zealand rights gained 3c or 5.4 per cent to 58c – above their reference price of 49c.
The Warehouse Group was up 6c or 1.96 per cent to $3.12; Scales Corporation increased 12c or 2.5 per cent to $4.92; DGL Group rose 18c or 5.07 per cent to $3.73; Gentrack collected 11c or 6.15 per cent to $1.90; and AFT Pharmaceuticals was up 14c or 3.99 per cent to $3.65.
SkyCity Entertainment, operating freely with the change to the orange traffic light system, gained 5c to $2.89. SkyCity told the market it was talking with its financiers about near-term financial covenants as a matter of prudence and providing contingencies should further Covid restrictions emerge.
Contact Energy declined 11c to $7.90; Delegat Group was down 25c or 1.92 per cent to $12.80; Napier Port shed 8c or 2.68 per cent to $2.91; Move Logistics decreased 5c or 3.45 per cent to $1.40; and Eroad was down 8c or 2.62 per cent to $2.97.
Meridian was down 6c to $4.74 after reporting retail sales were 5.9 per cent higher in March compared with the same month last year, and its Waitaki and Waiau catchment recorded their lowest March inflows on record.
NZ King Salmon Investments plunged a further 19c or 27.54 per cent to 50c a day after announcing a full-year loss of $73.2m and a $60m renounceable rights offer.
My Food Bag had one of its biggest single-day falls, decreasing 8c or 8 per cent to 92c. Another food operator Restaurant Brands was down 20c to $13.
Other decliners were CDL Investments down 4c or 3.51 per cent to $1.10, and NZME declining 4c or 2.3 per cent to $1.70 after earlier telling the market it has executed an agreement with Meta (Facebook) for digital transformation projects that drive subscriber growth and retention.
It was a day for property company news. Argosy, up 1c to $1.365, has bought a 3.25ha industry property in Hamilton with a lettable area of 14,755 sq m and initial rent of $1.5m a year. Industry property now makes up 51 per cent of Argosy's portfolio.
Stride Property, unchanged at $1.94, is continuing its investigation about improving the seismic performance of its office building in Lady Elizabeth Lane, Wellington.
Precinct Properties, down 1c to $1.54, is considering making a fixed rate six-year green bonds offer to institutional and retail investors. Asset Plus declined 1.5c or 4.92 per cent to 29c after organising a sale for its Auckland Graham St property.
Fitch Rating affirmed its BBB status for Heartland Group Holdings and its share price was down 4c to $2.32.
