NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

NZ shares rally on Reserve Bank rate cut

By Paul McBeth
BusinessDesk·
8 May, 2019 05:55 AM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Contact shares rose 3.8 per cent to $7.14. Photo / File

Contact shares rose 3.8 per cent to $7.14. Photo / File

New Zealand shares staged a late rally as the Reserve Bank's cut to the official cash rate boosted the attraction of companies paying reliable dividends such as Contact Energy and Mercury NZ.

The S&P/NZX 50 Index increased 35.66 points, or 0.4 per cent, to 10,063.05. Within the index, 30 stocks rose, 14 fell and six were unchanged. Turnover was $153.2 million.

The benchmark index had been in the red through much of the session, as Asian equity markets followed dour trading in New York amid heightened fears about US-China trade relations.

However, the Reserve Bank's decision to cut the OCR to a record low 1.5 per cent, making dividend yields more attractive than fixed-interest returns and lowering finance costs for corporates, spurred a rally in late trading.

Companies paying reliable dividends were among those most in vogue. Contact was up 3.8 per cent at $7.14 on a volume of 1.3 million shares, while Mercury NZ rose 2.6 per cent to $3.93 on 712,000 shares.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

"The RBNZ cut rates, which was a bit of a surprise in choosing not to follow the lead of the Federal Reserve and RBA," said Greg Smith, head of research at Fat Prophets.

Smith said the impact of the rate cut on the economy will depend on where the central bank settles on imposing tougher capital requirements on banks.

"Even if you ease on rates, if you start tightening up on lending you won't have a meaningful impact on the economy."

Advertisement
Advertise with NZME.

Skellerup Holdings led the market higher, up 5.3 per cent at $2.38, on a volume of 158,000 shares. Its 90-day average is 203,000. The rubber goods maker's industrial unit has been expanding its international business and is a beneficiary of a weaker currency. The RBNZ's rate cut immediately knocked the kiwi dollar down more than half a US cent. It was recently at 65.87 US cents.

Among other exporters to gain today, Scales Corp rose 1.8 per cent to $5.07, Vista Group International was up 1.6 per cent at $5.23 on a volume of 1.2 million shares, and Mainfreight rose 0.7 per cent to $35.50.

Spark New Zealand was the most traded stock on a volume of 3.6 million shares, down from its three-month average of 5.7 million. It increased by 0.3 per cent to $3.625. Auckland International Airport was unchanged at $8 on a volume of 3.2 million shares, almost three times its usual volume.

Among other companies trading on volumes of more than a million shares, Kiwi Property Group was unchanged at $1.535, Air New Zealand fell 0.2 per cent to $2.735, and Precinct Properties New Zealand declined 0.3 per cent to $1.595.

Discover more

Opinion

Liam Dann: Reserve Bank's bold OCR cut - did they get it right?

08 May 07:05 AM

Pushpay Holdings posted the biggest decline on the day, down 2.9 per cent at $3.71 on a volume of 2.9 million shares - about eight times its 90-day average.

The mobile payments system provider today reported an annual profit and was cashflow positive. However, chief executive and founder Chris Heaslip announced he was stepping back from the management team, while retaining his directorship. Chair Bruce Gordon will take over the CEO role.

Smith said Pushpay's result was reasonably good, meeting expectations, but that Heaslip's exit was a surprise.

"Although Gordon has experience and is a safe pair of hands, there's a bit of trepidation when a founder steps away," he said.

Synlait Milk fell 1.5 per cent to $10.50 on a typically small volume of 29,000 shares. The milk processor said the government's new methane targets were in line with the company's own sustainability targets. A2 Milk, which counts Synlait as a supplier, fell 0.7 per cent to $16.32 on a volume of 688,000 shares, below its 819,000 average.

The Carbon Fund, which invests in carbon commodities, last traded at $1.01.

Advertisement
Advertise with NZME.

Dairy prices rose for an 11th auction at the Global Dairy Trade event overnight, although whole milk powder prices were down 0.5 per cent. Fonterra Shareholders' Fund units rose 0.5 per cent to $4.27, while Fonterra Cooperative Group's shares, which are restricted to farmer suppliers, fell 0.2 per cent to $4.27.

Outside the benchmark index, Evolve Education shares were halted at 23 cents for a $63.5m capital raising. The company is selling shares at 8 cents apiece in a fully underwritten 4.4-for-1 entitlement offer, largely to repay $30m owed to ASB Bank. The balance will fund a foray into Australia.

The most-traded debt security was Kiwibank's Kiwi Capital Funding capital notes, which pay 6.61 per cent annual interest. Some 1.5 million notes traded at a yield of 3.58 per cent, down 42 basis points.

Some 1.2 million of Chorus's 2023 bonds, paying 4.35 per cent, changed hands today, closing at a yield of 3.55 percent, down 2 basis points. Chorus shares fell 1 per cent to $6.14.

Save

    Share this article

Latest from Business

Premium
Shares

Market close: NZX not crying over spilt a2 Milk, gains 0.74%

08 Jul 05:51 AM
Inflation

Reserve Bank of Australia surprises markets, holds cash rate at 3.85%

08 Jul 05:45 AM
Premium
Media Insider

TVNZ news in the spotlight: Independent review will check for balance, bias

08 Jul 04:09 AM

Audi offers a sporty spin on city driving with the A3 Sportback and S3 Sportback

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Premium
Market close: NZX not crying over spilt a2 Milk, gains 0.74%

Market close: NZX not crying over spilt a2 Milk, gains 0.74%

08 Jul 05:51 AM

Summerset shares lifted 3% to $12 after a trading update.

Reserve Bank of Australia surprises markets, holds cash rate at 3.85%

Reserve Bank of Australia surprises markets, holds cash rate at 3.85%

08 Jul 05:45 AM
Premium
TVNZ news in the spotlight: Independent review will check for balance, bias

TVNZ news in the spotlight: Independent review will check for balance, bias

08 Jul 04:09 AM
Premium
$30 billion blast-off: Why Rocket Lab just hit an all-time high

$30 billion blast-off: Why Rocket Lab just hit an all-time high

08 Jul 03:33 AM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP