The Reserve Bank of New Zealand (RBNZ) had forecast 0.4% for the quarter but more recently, the consensus among economists had moved to 0.7%.
Salt Funds Management managing director Matt Goodson said despite GDP being better than expected, it doesn’t materially move the market.
“I think it was in line with what the market largely knows in terms of the domestic side of the economy. So it probably keeps the RBNZ’s decision on hold in July,” Goodson said.
“If anything, there’s an implicit price deflate you can get out of GDP, which gives you a broader price measure than just the consumers price index. That was up 1.1% in the quarter, so there’s still a bit of inflation and green around.”
As for the domestic markets, late on Thursday Waterman Capital disclosed a fund that it manages had increased its stake in My Food Bag from 15.74% to 17.18% after participating in the company’s dividend reinvestment plan.*
“It’s a fascinating turn of events. I have to say the business does look as though it’s stabilised. If it will grow again is more of an open question.”
Elsewhere, a profit warning for Kathmandu parent KMD Brands worried investors, with its share price tumbling 6.78% to 27.5 cents, with 2,108,904 shares changing hands.
The outdoor retailer and wholesaler released its first full-year underlying earnings before interest, tax, depreciation and amortisation guidance, forecasting it will be between $15m and $25m.
The downgrade was driven by a 6.4% drop in Kathmandu sales over the first four months of the second half, reversing the positive sales trends disclosed in the company’s previous update.
Genesis Energy announced it had, with gentailers Mercury, Meridian, and Contact, signed a detailed, non-binding term sheet as a basis for establishing a strategic energy reserve centred on Huntly to support security of electricity supply.
“That’ll clearly need a Commerce Commission take, but in terms of being a sensible strategy for the entire country, I think it gets a massive tick because we desperately need power to firm up all the renewables that have been added around the country,” Goodson said.
Shares in Genesis Energy rose 0.44% to $2.29, up 1c, with 1,030,453 shares changing hands to the value of $2,355,812.38.
Mercury shares rose 1.94% to $6.04, up 11.5c, with 3,970,312 shares traded to the value of $23,831,596.33.
Wall Street stocks ended little changed on Wednesday local time after the Federal Reserve kept interest rates steady, while markets followed ongoing fighting between Iran and Israel.
The Fed, as expected, held interest rates unchanged for a fourth consecutive meeting, as chairman Jerome Powell said more time was needed to monitor the inflationary effects of President Donald Trump’s tariffs.
Meanwhile, Trump told reporters he has not yet made a decision on whether to join Israel in bombing Iran.
US shares spent part of the day in positive territory, but the Dow Jones Industrial Average ended down 0.1% at 42,171.66.
The broad-based S&P 500 slipped less than 0.1% to 5980.87, while the tech-rich Nasdaq Composite Index added 0.1% at 19,546.27.
*This story has been updated. An earlier version incorrectly stated Waterman Capital had exited its investment in My Food Bag.
– Additional reporting AFP
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
