Market close: Blue-chip profit taking weighs on New Zealand equity market

Equity investors are uncertain a2 Milk saw another sharp rise as the still-lacking New Zealand stock market suffered a further small decline.

It was quiet on the corporate news front, and the S & P / NZX
The 50 index slipped 11.12 points or 0.09% to 12,747.80. There were 77 winners and 56 losers across the market in 49 million stock trading volume valued at $ 149.62 million.

As a debate has erupted among economists as to whether interest rates will rise soon, the market anxiously awaits the Reserve Bank’s monetary policy review next Wednesday.

ANZ Chief Economist Sharon Zollner said a lot had changed since the Reserve Bank’s statement in late May and inflation risks were becoming heavily skewed towards an increase in the official exchange rate ( OCR).

“Now that the market is here, we expect the bank to start rising in November, taking OCR in regular steps to 1.75% (from 0.25%) by February 2023,” she said. declared.

But John Carran, investment strategist and economist at Jarden, believes there is no need for the Reserve Bank to rush OCR hikes in the immediate future. He said the recent spike in inflation is likely to be temporary, pent-up global demand for goods will ease soon, and “longer-term inflation expectations have remained well anchored around or just below 2%” .

Greg Smith, head of research for Fat Prophet, said many investors were taking stock ahead of the Reserve Bank’s decision. “There probably won’t be any changes, but everyone will be interested in the rhetoric of stimulus recall down the line.”

Global Marketing a2 Milk rose 27c or 3.77 percent to $ 7.43 on trades worth $ 12.7 million. The stock has gone from a high of $ 21.50 on August 18 of last year to a low of $ 5.50 on May 19 of this year – and investors are positioning themselves where they think a2 Milk will land.

A2 Milk, along with other companies, will release their latest financial results next month and provide an update on their business outlook. The company last provided a trade update on May 10.

There has been some profit taking on some blue chip stocks. Fisher and Paykel Health was down 48c to $ 30.12; Main freight fell $ 1.53 or 1.94 percent to $ 77.32; Ebos Group paid 25c to $ 31.75; Fletcher Building fell 15c or 2.02 percent to $ 7.26; Port of Tauranga decreased 13c or 1.85 percent to $ 6.91; Chorus lost 6c to $ 6.36; and Transport routes was down 35c or 2.68 percent to $ 12.71.

Auckland International Airport rose 18c or 2.44 percent to $ 7.55, Ryman Health was 16c at $ 13.48; and Pushpay increased from 2c to $ 1.67.

Among the energy values, Contact climbed 18c or 2.19 percent to $ 8.40; while Mercury dropped 19c or 2.04 percent to $ 6.71 and Power of trust was down 19c or 2.32 percent to $ 8.

Apple exporter Balances Corporation rose 14c or 3 percent to $ 4.81; Port of Napier, which handles containers of apples, rose 9c or 2.67 percent to $ 3.46; and Green Cross Health increased 2c or 1.74 percent to $ 1.17.

Eroad climbed 18c or 2.95 percent to $ 6.28; CDL Investments New Zealand was up 4c or 3.64 percent to $ 1.14; Scott technology rose 6c or 2.31 percent to $ 2.66; Enterprise Group collected 7c or 2 percent at $ 3.57; and online communication and marketing company Dynamics of solutions increased 6c or 1.98 percent to $ 3.09.

Goodman Real Estate Trust fell 6c or 2.44% to $ 2.40 on the day the company told shareholders at its annual meeting that there was growing demand from tenants in logistics and warehouses for more space due to the increase in online shopping and the need to store goods. Goodman posted its best statutory profit of nearly $ 650 million since listing in 1999.

Other real estate companies Vital health was down 7c or 2.08 percent to $ 3.29, and Speaker properties won 3.5c or 2.13 percent to $ 1.68.

Blis Technologies jumped 1.8c or 31.71 percent to 7.5c after forming a partnership with the global Swedish company, Probi AB, which will manufacture and sell some of Blis’ probiotic products, as well as a stake in research and Development. Blis will issue new shares of $ 9.18 million, giving Probi a 13% stake and a seat on the board of directors.

Cancer diagnostic society Pacific Rim has entered into an agreement with the Northland District Health Board and the Mahitahi Hauora Region Primary Health Entity for the use of Cxbladder products. The Pacific Edge share price was unchanged at $ 1.20.