The local market ignored a hotter-than-expected inflation rate in Australia. Matt Goodson, managing director of Salt Funds Management, said the higher consumer price index (CPI) in Australia will likely encourage the Reserve Bank there to keep its official cash rate on hold for the remainder of the year.
“Our market shook that off,” he said. “The half-yearly review of the MSCI Large Cap Index finishes at the end of this month and it’s still a line-ball call whether Ebos falls out.”
The March quarter CPI in Australia increased 1 per cent compared with 0.6 per cent at the end of December and ahead of the 0.8 per cent forecast.
Annual inflation at the end of March was 3.6 per cent, lower than 4.1 per cent in December but again ahead of the forecast of 3.5 per cent. Rents and education costs increased and piled further pressure on the cost of living, dimming hopes of an interest rate cut this year.
The S&P/ASX 200 Index fell after the release of the CPI and was trading at 7690.7 points, up just 0.09 per cent, at 6pm NZ time.
In the United States, the major indices rose sharply for the second day running. Dow Jones Industrial Average was up 0.69 per cent to 38,503.69 points; S&P 500 increased 1.2 per cent to 5070.55; and Nasdaq Composite rose 1.59 per cent to 15,696.64.
Tesla was up more than 10 per cent in after-hours trading to US$163.96 ($275.93) after telling the market it is accelerating the launch of more affordable new models of electric vehicles.
Tesla’s first-quarter result was lower than expected with revenue of US$21.3 billion ($35.84b), down 9 per cent, and earnings of US$1.1b ($1.85b), down 55 per cent.
Spotify surged 11.4 per cent to US$303.31 ($510.45) after beating first-quarter estimates – revenue was €3.61b ($6.5b) – and forecasting strong second-quarter earnings guidance.
At home, Auckland International Airport was up 8c to $7.87; a2 Milk gained 16c or 2.52 per cent to $6.52; The Warehouse increased 5c or 3.68 per cent to $1.41; Skellerup added 4c to $4.49; and Hallenstein Glasson rose 16c or 2.74 per cent to $6.01.
In the energy sector, Contact gained 10c to $8.63; Mercury was up 7c to $6.45; and Manawa declined 11c or 2.44 per cent to $4.39.
Summerset Group gained 7c to $11.17 after telling shareholders at the annual meeting it was on track to deliver 675-725 new homes in the 2024 financial year and will be opening the Auckland St Johns Village and main building at the Lower Hutt Boulcott Village. The key will be executing new sales at these villages.
Heartland Group was up 2c or 1.92 per cent to $1.06 after raising $79m from the retail entitlement offer with support from 81 per cent of the shareholders. The bank has completed its $210m capital raising, having gained $131m from institutional placement.
Other gainers were Fonterra Shareholders’ Fund up 9c or 2.5 per cent to $3.69; NZX increasing 3c or 2.65 per cent to $1.16; Stride Property improving 3c or 2.36 per cent to $1.30; and Gentrack adding 12c to $8.24.
Freightways declined 20c or 2.35 per cent to $8.30; Fletcher Building eased 9c or 2.27 per cent to $3.88; PGG Wrightson decreased 4c or 1.98 per cent to $1.98; CDL Investments was down 2c or 2.56 per cent to 78c; Eroad gave up 3c or 3.7 per cent to 86c; and Blackpearl Group shed 4c or 5.97 per cent to 63c.
AFT Pharmaceuticals was down 6c or 1.92 per cent to $3.07 after telling the market it was now developing a topical treatment for strawberry birthmarks in children, in conjunction with Massey Ventures and Wellington-based Gillies McIndoe Research Institute.
