New Zealand stocks ended the day without much change after being caught in a global sell off yesterday when traders interpreted the US Federal Reserve meeting record as hawkish.
Friday January 7, 2022, 8:49 p.m.
The S & P / NZX 50 Index lost 12 points, or 0.1%, to 12,970.65. Turnover was $ 112 million.
Local markets took further inspiration from the United States, which was relatively stable overnight as investors waited to see jobs data due out Friday night.
The minutes of the Federal Reserve’s meeting highlighted the tightening labor market as one of the reasons it may have to hike rates faster than it previously anticipated.
While the information in the minutes was not much different from what the central bank said previously, the markets still reacted as if they were more hawkish.
Traders will now watch whether the release of nonfarm employment data puts further pressure on policymakers to raise interest rates.
Jeffrey Halley, market analyst at Oanda, said the nerves in the market would ease if data shows less than 400,000 new jobs have been added to the economy, while more than 500,000 will be the result. reverse.
“The overnight collapse is more about positioning than anything else, because when you look at what the Fed members said in the minutes, it wasn’t much different from what we already knew.” , did he declare.
Bitcoin has fallen more than US $ 5,000 in recent days, with most of that drop occurring Thursday night as it followed the decline in other risky assets.
Cinema software company Vista Group led the market down, having already posted one of the weakest performances yesterday.
The stock traded near $ 2.60 in November, but lost ground in December and fell another 2.6% today to $ 2.26.
A motley team of other stocks followed behind Vista: Infratil fell 2.1% to $ 8.11, Sanford fell 2% to $ 4.86, and Serko fell 1.5% to 6 , $ 70.
Mercury NZ posted the biggest gain of the day, up 3.4% to $ 6.36, while Pacific Edge gained 2.3% to $ 1.32.
AFT Pharmaceuticals rose 1.1% to $ 4.51 after saying in a letter to shareholders that it was preparing to market its Maxigesic products in the United States after the regulator responded to its request for the tablets later this this month.
The company left its guidance for operating income for the fiscal year ending March 2022, of $ 18 million to $ 23 million, unchanged.
The Motor Industry Association reported that more cars were sold last month than any other month in December, increasing 44.3% year-on-year to 12,097 vehicles.
The used market kept pace, rising 7.7% to 121,860 total units, breaking a three-year downward trend in used car sales.
2CheapCars operator NZ Automotive Investments rose 1.1% to 93 cents, while Turners Automotive Group and The Colonial Motor Company each rose 0.2% to $ 4.59 and $ 10.80, respectively.
Air New Zealand shares climbed 0.7% to $ 1.52. The airline is expected to raise more than $ 1 billion in capital over the next three months, and many analysts believe the stock is overvalued.
The Kiwi dollar fell further and was trading at 67.45 cents US by 3pm in Wellington, against 67.90 cents yesterday.
The OFX bureau de change said in a note that the US dollar is in demand amid rising expectations that the Federal Reserve will tighten monetary policy more quickly to control inflation.
The kiwifruit has already found support at 67 cents US, but that level could be tested if US employment data looks strong when released Friday night.
“Leading indicators suggest that the labor market continues to recover from the impacts of the delta variant, with analysts forecasting a sharp increase in job growth through December,” OFX said.
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