The NZX 50 edged higher today as Fisher & Paykel Healthcare halted its five-day decline and oil prices fell 7% overnight.
Tuesday, March 29, 2022, 8:59 p.m.
by Business Desk
The S&P/NZX 50 Index rose 9.9 points, or 0.08%, to 11,974.98. Revenue was $157.6 million, a significant decline and reversion to the average, from $349.8 million yesterday.
Shares of Fisher & Paykel Healthcare rose for the first time after a tough few days following its warning that annual market earnings would be down around 13% last week. The stock rose 1.4% to $23.80.
Greg Smith, head of retail at Devon Funds, said investors are currently trying to establish whether some value has emerged with F&P Healthcare as “covid-19 tailwinds begin to dissipate”.
Eroad shares continued their rally from yesterday, rising 3.1% to $4.03, thanks to the announcement of a three-year credit facility with ANZ and Bank of NZ.
Mieneke Perniske, trader at Kiwibank, said the main themes driving the market today were US Treasury yields, which were currently affecting yields in New Zealand.
“On the back of that, the focus is still on Russia and Ukraine, which tends to add some risk aversion to the markets every other day,” she said.
Perniske said the market had been in a very “push and pull” sequence of risk appetite followed by risk aversion mode since Russia invaded Ukraine in February.
Air NZ shares rose 1.1% to $1.40 after falling yesterday when the airliner said it would seek up to $180m from the $250m extension from the government’s cargo support program to help maintain air cargo capacity during the pandemic.
The national carrier is expected to announce details of its planned fundraising soon, which analysts say could approach $1 billion.
Telecommunications company Vital Limited was the worst hit by the index today, falling 6.3% to $0.30. Synlait Milk also struggled, falling 3.3% to $3.21 ahead of its half-year results on Friday.
Smith said Synlait’s results for the six months ending Jan. 31 were the “most anticipated results” to come out this week.
“Dairy prices are at their all time highs and there will be a lot of market interest,” he said.
ANZ jumped 1% to $30.25 after an RBNZ-ordered review of ANZ’s director attestation framework found the bank had taken ‘appropriate steps’ to address concerns raised in a report of 2019.
Steel & Tube Holdings rose 3.3% to $1.55 and Ebos rose 1% to $40.38 as the healthcare and pet products company yesterday announced its approval by the Australian antitrust regulator to buy LifeHealthcare giving the company a boost today.
Shares of Hallenstein Glasson rose 1.5% to $6.59 and shares of Michael Hill also rose 2.4% to $1.29 as both companies recovered slightly from recent losses.
Retirement village operator Ryman Healthcare also rose 1% to $9.20.
Perniske said the New Zealand dollar headed “a bit lower” during the day and the NZD/AUD was also lower, which she said was due to pressure from the invasion. Ukrainian.
“We’ve seen a huge increase in commodity prices, especially oil, and it’s getting very volatile,” she said.
“Oil is down about 7% overnight and there are concerns about lower demand in China because they’ve had a huge spike in covid cases – this adds lower oil prices oil.”
The New Zealand dollar was trading at 68.92 cents US at 3pm in Wellington, down from 68.72 cents last week. The trade-weighted index was at 74.28 from 74.01 last week.
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