The S&P/NZX 50 index notched up a 0.1% gain this week, even as it spent three days in the red, as investors weigh up the prospect of lower US interest rates down the line if President Donald Trump presses ahead with a friendlier successor to Federal Reserve chair Jerome Powell.
Local trading was fairly subdued, with Infratil leading the benchmark higher as chipmaker Nvidia notched up new records on the Nasdaq.
Meanwhile the kiwi dollar remained elevated as the prospect of lower US rates sapped demand for the greenback and as ANZ’s latest consumer confidence survey showed households were less glum.
And former CBL Corp chief financial officer Carden Mulholland was ordered to pay more than $1.2 million in penalties and costs for the failed insurer’s breaches of continuous disclosure rules.
Day 2
The NZX50 rose for a second day, climbing 103.55 points, or 0.8%, to 12,583.55, with 32 gainers, 12 decliners, and six companies unchanged. Turnover across the main board was relatively quiet at $98.9 million.
Stock markets across Asia struggled for direction with Australia’s S&P/ASX 200 index down 0.1% in late trading, while Japan’s Nikkei 225 index climbed 1.4% and Hong Kong’s Hang Seng dipped 0.1%.
Wall Street provided a strong lead with the S&P 500 and Nasdaq Composite both rallying amid reports that US President Donald Trump might name a successor to the Fed chair position early, adding to the pressure the White House is exerting on Jerome Powell to cut the federal funds rate.
The kiwi traded at 60.61 US cents at 5pm in Auckland from 60.72 cents at 7am and 60.48 cents yesterday.
“Markets in the States were driven by the potential for rate cuts after Trump’s indication that Powell’s replacement may have more dovish policy,” said Peter McIntyre, an investment adviser at Craigs Investment Partners.
Infratil led the local market higher, climbing 2.9% to $10.70 as it rose for a second day amid reviving optimism about artificial intelligence.
Spooky data
New Zealand’s government underlined the importance of data as it officially opened its all-of-government data centre to provide safe and secure domestic storage. The Government Communications Security Bureau – the external intelligence unit – will operate the $326 million facility at the Royal New Zealand Air Force’s base at Whenuapai in Auckland.
Spark New Zealand advanced 2.5% to $2.42 on a volume of 2.6 million shares, the day’s most heavily traded stock, while telecommunications network operator Chorus increased 0.8% to $4.19.
Among other gainers on the day, Summerset Group Holdings advanced 2.7% to $11.25, Fletcher Building snapped its five-day slide as it rose 2.4% to $2.94 and Gentrack increased 2.1% to $12.40.
Oceania Healthcare, which held its annual meeting today, was unchanged at 66 cents, while Eroad rose 2.1% to $1.43 after holding its AGM.
Fonterra Shareholders’ Fund units posted the biggest decline on the benchmark index, down 2.2% at $6.60, while Synlait Milk sank 6.1% to 62 cents. SkyCity Entertainment Group fell 2.2% to 90 cents.
Winter came slowly
Retailers were broadly stronger after ANZ’s consumer confidence survey showed household sentiment improved with the start of winter, albeit remaining very soft. KMD Brands slipped 1.8% to 27 cents, while Briscoe Group increased 1.1% to $5.40 and Hallenstein Glasson Holdings rose 0.5% to $8.18.
Outside the benchmark index, Warehouse Group rose 1.3% to 79 cents while Michael Hill International fell 1.2% to 43 cents.
The Financial Markets Authority today said former CBL CFO Carden Mulholland was ordered to pay $641,000 in penalties for breaching continuous disclosure requirements, plus costs of $606,000. Mulholland and the regulator agreed on the penalty and costs after the High Court found the former exec liable in an earlier ruling.
“This was the first time New Zealand courts had considered the liability of a CFO acting as an accessory to a company’s contravention under the FMCA,” said FMA enforcement head Margot Gatland, referring to the Financial Markets Conduct Act. “The court’s ruling and penalty demonstrate that such behaviour is unacceptable and will not be tolerated.”
Reporting by Paul McBeth. Image from Curious News.
