The market is on wait and watch for the latest New Zealand Reserve Bank move. ANZ Research is predicting the New Zealand Reserve Bank will keep the official cash rate on hold – just like Australia’s – when it delivers its latest monetary policy statement next week.
“Anything else would be a massive surprise,” ANZ said. “Local (economic) data since the May statement has been mixed, but overall supports the Reserve Bank’s wait-and-see stance.
“Demand is definitely cooling, but we expect the ‘real’ recession (the one that reflects the aggregation of individuals’ more cautious decision-making and rising unemployment) to occur in the second half of the year.”
The ANZ World Commodity Index, down 2.3 per cent in June, wasn’t bright news for the New Zealand primary exporters, and the NZ dollar strengthened slightly to US61.98c against the American greenback.
Lamb prices fell 10.2 per cent last month and beef was down 7.2 per cent as the major markets in Europe and China come under economic pressure. Meat prices are expected to fall further.
The forestry index declined 3 per cent in June with weak demand from China, and logs are now worth 21 per cent less than a year ago. Dairy prices were down 0.2 per cent, with cheese and butter prices lifting and milk powder softening.
But better news for horticulture exporters, with the sector index increasing 5 per cent in June. New-season apple prices rose sharply but are still 12 per cent lower than they were at this time last season.
Aluminium prices, down 3.2 per cent in June, are now at their lowest level in more than two years.
The latest NZX statistics showed total equity trades fell 28.5 per cent to 752,760 in June but the total value was up 4.3 per cent to $2.96 billion. The average on-market trade size was $2661.
The total capital listed and raised was $1.71b in June and $7.156b for the year to date, down 23.7 per cent.
On the local market, Fisher and Paykel Healthcare gained 10c to $24.70; Freightways picked up 8c to $8.30; Mainfreight collected $1 to $72.980; Spark added 4.5c to $5.10; Ryman Healthcare increased 8c to $6.83; and Skellerup Holdings was up 7c to $4.50.
Global marketer a2 Milk was up 8c to $5.44 after losing a trademark legal battle to stop Chinese Theland Farm Group from using A2 in its infant formula brand.
In the energy sector, Meridian gained 5c to $5.55; Mercury was up 6c to $6.60; and Manawa Energy increased 10c or 2.04 per cent to $5.
Retailers The Warehouse increased 4c or 2.26 per cent to $1.81; Hallenstein Glasson was up 12c or 2 per cent to $6.12; and KMD Brands gained 2c or 1.98 per cent to $1.03.
Other gainers were Colonial Motor Company increasing 22c or 2.52 per cent to $8.95; Scott Technology adding 11c or 3.45 per cent to $3.30; Chatham Rock Phosphate up 1.5c or 9.15 per cent to 17.9c; and My Food Bag improving 1.5c or 7.5 per cent to 21.5c.
CDL Investments was up 2.5c or 3.7 per cent to 79c; 2 Cheap Cars gained 1c or 3.45 per cent to 30c; and Blackpearl Group increased 1.5c or 3.53 per cent to 44c.
In the property sector, Argosy was up 3c or 2.67 per cent to $1.155; Vital Healthcare Trust gained 1.5c to $2.34; Precinct was down 1.5c to $1.315; and Goodman Trust declined 2.5c to $2.185.
Auckland International Airport declined 16c or 1.86 per cent to $8.42. Auckland Council has now appointed investment bank UBS to advise on the sale of 7 per cent of its 18 per cent shareholding in the airport. The council is looking to fetch around $865m for the sale.
Robertshaw said UBS could find a strategic asset buyer or provide advice on a private placement of the airport shares.
Restaurant Brands was down 14c or 2.21 per cent to $6.20, and Carbon Fund fell a further 6c or 4.62 per cent to $1.24.
Blis Technologies chief executive Brian Watson has resigned and will be leaving the company within six months. Its share price was down 0.001c or 4 per cent to 2.4c.
