NZX50 shines as RBA keeps rates on hold

New Zealand’s S&P/NZX 50 index was one of the standouts across Asia, as the Reserve Bank of Australia kept its key rate unchanged amid a bout of inflation across the Tasman, where trading was subdued for the Melbourne Cup race day.

Heartland Group Holdings led the local benchmark index higher, while blue chips offering reliable dividends such as Meridian Energy, Goodman Property Trust and Auckland International Airport lent their weight to the day’s gain.

Fletcher Building rose after handing over the fraught international convention centre to SkyCity Entertainment Group, which was one of the few firms on the red side of the ledger.

And Being AI was unchanged after agreeing to sell its Send Global business to the shell of a company’s major shareholder, which will need approval at a special meeting.

Racing to the end

The NZX50 climbed 49.66 points, or 0.4%, to 13,605.96, with 30 stocks gaining, 17 declining, and three unchanged. Turnover across the main board was $133.9 million, of which Auckland International Airport accounted for $15.3 million as it rose 0.7% to $8.19.

The country’s major gateway was one of several major companies that typically pay reliable dividends bolstering the local bourse, with Meridian Energy up 1.5% at $6.03, Contact Energy advancing 1% to $9.53 and Goodman Property Trust rising 1.9% to $2.15.

Heartland Group Holdings led the benchmark higher, up 3.2% at $1.12, a three-and-a-half week high.

Across the Tasman, the Reserve Bank of Australia kept its target cash rate at 3.6% as expected, pointing to recent data indicating inflationary pressure is lingering and the jobs market remains tight.

“Given this, and the recent evidence of more persistent inflation, the board judged that it was appropriate to remain cautious, updating its view of the outlook as the data evolve,” the RBA said in its statement. “The board remains alert to the heightened level of uncertainty about the outlook in both directions.”

The kiwi dollar traded at 56.94 US cents at 5pm in Auckland from 57.23 cents yesterday, and decreased to 87.21 Australian cents from 87.34 cents.

Going the distance

New Zealand’s market was one of the stronger performers across Asia, with Australia’s S&P/ASX 200 index down 0.6% in late trading as investors bemoaned the lack of movement by the RBA and with the highly popular Melbourne Cup race day thinning out trading desks.

Japan’s Nikkei 225 index was down 0.5% while Hong Kong’s Hang Seng increased 0.2%, with US President Donald Trump’s comments that Nvidia’s Blackwell chip won’t be sold to China reviving latent nerves about the tenuous truce between the world’s superpowers.

Local tech stocks were broadly weaker, with Vista Group International posting the biggest decline on the top 50, down 5.3% at $2.51, while Serko fell 2.7% to $2.56 and Gentrack decreased 0.4% to $8.88. Outside the benchmark index, components maker Rakon declined 2.6% to 76 cents.

Fletcher Building advanced 1.8% to $3.34 after handing over the much-delayed New Zealand international convention centre to SkyCity Entertainment Group, which remains subject to a dispute. The casino operator fell 1.3% to 73.5 cents.

Spark New Zealand was the most heavily traded stock with a volume of 3.5 million as it fell 2.1% to $2.39.

NZME, publisher of the NZ Herald, posted the biggest gain on the main board, climbing 5.1% to $1.24, its highest level since December 2022, after Auckland realtor Barfoot & Thompson said sales volumes remained subdued for the country’s biggest city in October, although its listings rose to a three-month high.

Being AI was unchanged at 10.7 cents after the company said it plans to sell its Send Global mail business to its biggest shareholder, Wilshire, for $8.8 million, which will see it pocket $202,000 once related party debts are satisfied. The deal needs shareholder approval, and if it goes ahead Being AI will keep its listing and seek reserve listing opportunities.

Reporting by Paul McBeth.