Federal Reserve Chairman Jerome Powell announced another big rate hike earlier this week. Photo / AP
Six central banks hiked interest rates this week to fight inflation and New Zealand’s stock market was eventually impacted by weaker offshore share prices, falling almost 1 per cent.
The S&P/NZX50 Index closed at 83.49
points, or 0.72 percent, down to 11,434.82. The index is down nearly 1.3 percent this week and is down 12.5 percent so far this year.
There were 51 winners and 85 losers in the entire market on a volume of 28.21 million stock trades valued at $95.6 million.
On the other side of the Tasman Peninsula, the S&P/ASX 200 Index was down 1.92 percent to 6571.8 at 6:00 PM NZ time.
The central banks of the United States, United Kingdom, Switzerland, Norway, Sweden and South Africa all hiked their official interest rates and global stock markets plummeted.
Shane Solly, portfolio manager at Harbor Asset Management, said markets are feeling hurt and battered and New Zealand is not immune.
“There is some data coming out that inflation has peaked and markets are recovering, but it will take time. Everyone has a clear idea of what central banks are doing – there is a massive repricing of interest rates – and this has softened fundamental market sentiment.
“With the cost of living rising and interest rates rising, consumer stocks have been weak,” Solly said.
“In Australia, Wesfarmers, which owns Bunnings (down 4.3 percent), Domino’s Pizza (5.12 percent), casino and travel stocks were all weaker.”
The US 10-year Treasury yield rose 0.18 percent to 3.715 percent and the NZ dollar continued to weaken. It was at 88.10 cents against the Australian dollar, a five-year low, and 58.26 cents against the US dollar, falling from a daily high of 58.57 cents.
Among local consumer stocks, a2 Milk fell 29 cents, or 4.62 percent, to $5.99; Fisher and Paykel Healthcare fell 46 cents, or 2.35 percent, to $19.10; and the Briscoe Group was down 7 cents at $5.32.
Bucking the trend, KMD Brands and Michael Hill were up 3c, or 2.91 percent, to $1.06 and up 3c, or 2.4 percent, to $1.28, respectively.
Spark fell 12 cents, or 2.3 percent, to $5.09; Ebos Group down 50 cents at $38.05; Fletcher Building fell 10 cents, or 1.9 percent, to $5.16; and the Delegate Group lost 15 cents to $10.80.
Among energy stocks, Mercury fell 9.5 cents to $5.905; Genesis fell 5.5 cents, or 1.87 percent, to $2.89; and Manawa rose 7 cents to $5.93.
Turners Automotive lost 7 cents, or 1.9 percent, to $3.61; Plexure Group fell 3.5 cents, or 9.09 percent, to 35 cents; The Accordant Group fell 4 cents, or 2.15 percent, to $1.82; and Heartland Group was down 4 cents, or 2.22 percent, at $1.76.
Auckland International Airport gained 5 cents to $7.62 on trades valued at $10.96 million; Summerset Group rose 9c to $10.79; Skellerup Holdings rose 11 cents, or 2.01 percent, to $5.59; Freightways added 14c at $10.20; and the Port of Tauranga rose 19 cents, or 2.97 percent, to $6.59.
T&G Global was up 10 cents, or 3.85 percent, to $2.70; Scales Corporation rose 20 cents, or 4.17 percent, to $5; Gentrack was up 5 cents, or 3.57 percent, at $1.45; Seeka added 10 cents, or 2.53 percent, to $4.05; and the trading window rose 3 cents, or 4.69 percent, to 67 cents.
Tourism Holdings rose 10 cents, or 3.77 percent, to $2.75 after it received support from the New Zealand Commerce Commission for its merger with Australian Tourism & Leisure. The merger still needs the support of the Australian Competition and Consumer Commission.
The trade commission’s approval followed an agreement between Tourism Holdings and Apollo to sell $45 million in assets to the Jucy Group. Assets include 110 4-6 berth motorhomes from Apollo’s New Zealand rental fleet and 200 4-6 berth motorhomes from the Australian fleet; Apollo’s Star RV motorhome brand; and land leases for surplus Apollo rental depots in Auckland, Perth, Alice Springs, Darwin and Hobart.
Sky TV is up 8c 3.02 percent to $2.29 and has received court approval to present its $70 million capital return plan to shareholders at the November 2 special meeting. Every sixth share will be canceled and shareholders will receive 40c for each canceled share.
Vulcan Steel, which is down 10 cents at $8.20, has made its third payment to purchase Ullrich Aluminum, but the final payment is being adjusted as Ullrich’s net tangible assets of $127.75m drop to $3.25m .$ was lower than stated in the agreement.
Online personal lender Harmoney, up 1 cent to 79 cents, is being delisted from the NZX on October 28 and is focusing on the Australian market as low trading volumes are spread across both exchanges. Harmoney has 341 New Zealand shareholders holding 6.45 percent.