Mar­ket com­men­tary

Otago Daily Times - - MARKETPLACE 13 -

AUCK­LAND: New Zealand shares inched higher in quiet trad­ing as in­vestors await news from off­shore. Kath­mandu re­cov­ered some of its re­cent losses.

The S&P/NZX 50 in­dex rose 8.97 points, or 0.1%, to 8968.55. Within the in­dex, 21 stocks rose, 12 were un­changed and 17 fell. Turnover was $80.6 mil­lion.

Grant Wil­liamson, a di­rec­tor at Hamil­ton Hindin Greene, said there was ‘‘no theme’’ to the trad­ing and ‘‘all of the move­ments are pretty tiny’’.

In­vestors were largely tread­ing wa­ter, wait­ing for leads from off­shore, he said.

Mar­ket sen­ti­ment might be af­fected by United States earn­ings, with sev­eral banks due to re­lease quar­terly re­sults this week, the on­go­ing US gov­ern­ment shut­down and the vote on Brexit this week.

Do­mes­ti­cally, to­mor­row’s busi­ness out­look sur­vey from the New Zealand In­sti­tute of Eco­nomic Re­search is un­likely to move the mar­ket, with busi­ness con­fi­dence still tepid, Mr Wil­liamson said.

Ear­lier yes­ter­day, Fitch So­lu­tions Macro Re­search said New Zealand’s econ­omy was likely to grow at a slower pace than Trea­sury was fore­cast­ing, due to weak busi­ness con­fi­dence and de­clin­ing con­sumer con­fi­dence.

‘‘We fore­cast real GDP growth to come in at 2.6% in 2019 and 2.3% in 2020 com­pared to the Trea­sury’s more bullish fore­casts of 3% and 3.2% re­spec­tively,’’ it said.

‘‘I do get the feel­ing that we are not go­ing to see too much move­ment in this mar­ket un­less we get some large move­ment off­shore,’’ he said. ‘‘I think in­vestors are re­ally wait­ing for the Fe­bru­ary re­port­ing sea­son.’’

Kath­mandu, which has been un­der pres­sure since re­port­ing a dis­ap­point­ing Christ­mas trad­ing sea­son, gained 1.3% to $2.28 and was the most heav­ily traded stock yes­ter­day. While vol­umes were larger than usual, he said ac­tual on­mar­ket trad­ing was very light.

Spark New Zealand had the se­cond high­est vol­ume, shed­ding 0.6% to $4.14. Al­most 2 mil­lion of its shares changed hands.

The top mover was Port of Tau­ranga, which gained 1.8% at $5.14.

Syn­lait Milk rose 1% to $9.36. Late Fri­day it said reg­is­tra­tion of its Dun­sandel plant in the South Is­land has been re­newed by Chi­nese au­thor­i­ties for an­other four years.

Dis­ap­point­ing Chi­nese trade data gave Aus­tralia’s min­ing and en­ergy sec­tors a whack and kept the broader mar­ket flat af­ter what promised to be a pos­i­tive start to the week.

The bench­mark S&P/ASX200 in­dex closed 1.2 points, or 0.02% lower, at 5773.4 as early gains on US­China trade hopes evap­o­rated.

The broader All Or­di­nar­ies was down 1.6 points, or 0.03%, at 5833.2. — Busi­nessDesk/AAP


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