Market close: New Zealand market flattens as investors mull over data

The S&P/NZX 50 Index edged up 0.06 per cent.

New Zealand’s benchmark index flattened out on Wednesday after a quiet day on the market in terms of news gave investors more time to chew over yesterday’s Consumers Price Index (CPI) inflation data, which came in much lower than expected.

The S&P/NZX 50 Index edged up 7.1 points, or 0.06 per cent, to 11,221.48. Turnover was $85.8 million. There were 62 gainers and 57 decliners on the main board.

Chief investment officer Paul Robertshawe at Octagon Asset Management said Tuesday’s CPI data had been a “positive surprise”.

“It was good news, but I’m not sure we’re out of the woods yet in terms of when people might be starting to price rate cuts because inflation is really falling,” Robertshawe said.

Yesterday’s new CPI data revealed a decrease in annual inflation to 5.6 per cent during the September quarter and a reduction in the official cash rate is now expected in February 2025, a few months ahead of previous expectations.

In a note on the latest global dairy trade auction today, Westpac senior agricultural economist Nathan Penny said the worst of the price cycle “may be behind us”, but Westpac remained cautious on the outlook for the rest of the season.

The bank has upped its 2023/24 milk price forecast by 50 cents to $7.25/kg.

Synlait Milk was up 1 cent or 0.7 per cent to $1.36, a2 Milk fell 4c or 0.8 per cent to $4.50 and shares in Fonterra Shareholders’ Fund Units were flat at $3.11.

AFT Pharmaceuticals told the market today that it had been given approval from the Food and Drug Administration (FDA) in the United States to sell its intravenous pain relief medicine, Maxigesic IV, in the US.

The stock was up 10c or 2.9 per cent to $3.50 by early evening.

Dual-listed cancer diagnostics company Pacific Edge was down a quarter of a cent or 3.7 per cent to 10.5c.

Sky Television Network fell 5c or 1.8 per cent to $2.75.

Robertshawe said people were speculating about who was behind the bid for Sky TV, as the media company has yet to reveal any more details about their mystery bidder.

“You’d think if it wasn’t serious, they’d ask them to sort of come out and say, ‘hey, look, it’s gone now, we will resume the buyback’. So, the fact the longer it goes on, the more real it probably looks would be the way I’d interpret that,” he said.

Tech firm Scott Technology reported its full-year results, revealing group revenue had climbed 21 per cent to $268m and net profit after tax was up 21 per cent to $15.4m.

“We were positioned to fly, and we have really seen that acceleration of growth take hold in the 2023 financial year,” chief executive John Kippenberger told the market. Scott Technology was up 14c or 4.2 per cent to $3.49 by the end of the day.

The New Zealand dollar was trading at US58.86c at 3pm in Wellington, down from US59.06c on Tuesday. The trade-weighted index was at 70.04, from 70.22 on Tuesday.