New Zealand shares continued their upwards creep so far this week with no major announcements among listed companies, but confirmation from the Reserve Bank of New Zealand that it believes economic recovery is gaining momentum.
New Zealand shares continued their upwards creep so far this week with no major announcements among listed companies, but confirmation from the Reserve Bank of New Zealand that it believes economic recovery is gaining momentum.
The NZX50 Index rose 6.601 points, or 0.14 percent, to 4641.497. Within the index, 26 stocks rose, 14 fell, and 10 were unchanged. Turnover was $174.6 million.
Auckland International Airport led the index up, gaining 2.37 percent to close at $3.245. The company is the only Australasian airport to feature in the prestigious global airport awards, the World Routes Marketing Awards, for best provider among airports serving four million to 20 million passengers annually.
Clothing chain operator Hallenstein Glasson continued its strong run this week, up a further 2.1 percent to $4.90. Port of Tauranga recovered some of the ground lost this week after it reported a recently acquired subsidiary had lost a major contract. The shares closed up 1.4 percent at $14.20.
Big-shed retailer Warehouse, whose annual earnings are due tomorrow morning, rose 1.1 percent to $2.80, with analysts expecting a solid result The shares are 31 percent over the last year, although it has been weak in recent weeks..
RBNZ governor Graeme Wheeler used his three monthly monetary policy statement to all but confirm he would raise the Official Cash Rate for the first time in three years next year, and that rate rises would be steeper than previously anticipated.
"The positive is that the Reserve Bank has more confidence that the recovery is building momentum," said Chris Green, an economic strategist at First NZ Capital. "That's supportive for equities."
However, higher interest rates would close the earnings gap that has opened up between shares and interest-bearing investments during the last few years of low interest rates, with the RBNZ announcements signalling New Zealand's central bank may be "the first cab off the rank in the developed world to raise interest rates."
With international fears of a US bombing campaign in Syria, gold prices continued soft, reflected in OceanaGold falling a further 2.4 percent to $2.03.
(BusinessDesk)
