NZ stocks stuck in a traffic jam - Market close

The New Zealand sharemarket had its 10th fall in 12 days. With school holidays starting, many people were away and the market was stuck in traffic congestion, says Matt Goodson, managing director of Salt Funds Management. Photo / 123rf

The New Zealand sharemarket, heading for its 10th fall in 12 days, finished the week flat and was saved by another rise in the end-of-day matching session.

The S&P/NZX 50 Index closed at 11,931.32, down 2.99 points or 0.03 per cent, with the turnaround coming in the last 45 minutes when brokers match their buy and sell orders. The intraday low was 11,840.57 points.

The index declined nearly 0.67 per cent this week and has gained 1.4 per cent for the year to date.

There were 66 gainers and 71 decliners over the whole market with 25.9 million shares worth $84.39 million changing hands.

Matt Goodson, managing director of Salt Funds Management, said with the school holidays starting, many people were away and the market was stuck in a traffic jam.

He said the market was trapped by the slow economy and sharp rise in wholesale interest rates. “Until we see some easing from the Reserve Bank, the market will likely continue to tread water.”

The New Zealand 10 Year Government Bond yield was up a further 4.9 basis points to 4.829 per cent and the US 10 Year Treasury Note increased to 4.571 per cent.

ANZ Research predicted the first quarter consumer price index, to be released next week, would rise 0.6 per cent, taking annual inflation down from 4.7 per cent to 4 per cent but above the Reserve Bank’s forecast of 0.4 per cent and 3.8 per cent.

Goodson said there was renewed optimism with the Magnificent Seven technology stocks in the United States but the rally wasn’t broadly based.

The technology-driven Nasdaq Composite reached a new high after rising 1.68 per cent to 16,442.20 points. Amazon also hit a high, increasing 1.67 per cent to US$189.05 ($314.77).

Apple was up 4.33 per cent to US$175.04 ($291.44); Nvidia increased 4.11 per cent to US$906.16 ($1508.79); and Alphabet, owner of Google, gained 1.99 per cent to US$160.79.

At home, Insurer Tower was up 2c or 2.9 per cent to 71c. One broker said Tower has experienced a positive reversal of fortunes with the absence of large events in the first half and is likely to report an exceptionally strong financial result in May.

Mercury Energy was down 12c or 1.79 per cent to $6.60; PGG Wrightson declined 5c or 2.38 per cent to $2.05; Michael Hill eased 2c or 2.74 per cent to 71c; Synlait Milk shed 2c or 3.39 per cent to 57c; and Serko decreased 8c or 2.23 per cent to $3.50.

Other decliners were Winton Land down 7c or 3.11 per cent to $2.18; Smartpay shedding 4c or 2.67 per cent to $1.46; and Carbon Fund falling 7c or 4.64 per cent to $1.44.

Freightways collected 18c or 2.1 per cent to $8.76; Meridian Energy was up 7c to $5.78; Manawa Energy gained 11c or 2.42 per cent to $4.65; Napier Port added 4c or 1.73 per cent to $2.35; and Steel & Tube increased 3c or 2.88 per cent to $1.07.

Ebos Group gained 30c to $35.11. Goodson said pricing in the latest MSCI Large Cap Index review begins next week and Ebos is in danger of falling out of the global index.

NZME was up 2c or 2.22 per cent to 92c after gaining 3.45 per cent the day before; Eroad improved 2c or 2.35 per cent to 87c; Savor increased 1.5c or 6.52 per cent to 24.5c; and Cooks Coffee picked up 1c or 3.85 per cent to 27c.

Chatham Rock Phosphate, up 0.009c or 5.96 per cent to 16c, resumed trading after telling the market the invitation to apply as a listed project (for the Chatham Rise phosphate project) in the Fast Track Consenting Bill was not exclusive – and that numerous others parties received the same invitation.