The broader markets of New Zealand is sensitive to the performance of NZ economy and if the growth of NZ economy comes into question, the markets might witness some negative impacts. On May 4, 2020, S&P/NZX50 ended the session in green as there was an increase of 0.26% to 10,476. On the same day, S&P/NZX All Consumer Discretionary ended in red as there was a fall of 2.84% on an intraday basis and S&P/NZX All Consumer Staples rose by 3.29%.
New Talisman Gold Mines Limited (NZX: NTL) rose by 14.29% to NZ$0.008 per share and Cannasouth Limited (NZX: CBD) witnessed a rise of 8.70% on an intraday basis.
On May 4, 2020, QEX Logistics Limited (NZX: QEX) ended the session in red as the stock price fell by 19.05% on an intraday basis to NZ$0.680 per share. On the same day, Truscreen Limited (NZX: TRU) declined by 10.29% to NZ$0.061 per share.
WBC Releases 1H FY 2020 Results
Westpac Banking Corporation (NZX: WBC) has released 1H FY 2020 results in which its statutory net profit amounted to $1,190 Mn, reflecting a fall of 62% and its cash earnings amounted to $993 million, a fall of 70%. The bank’s cash earnings per share stood at 28 cents, reflecting a fall of 71% and its return on equity (or ROE) stood at 2.9%.
The bank stated that its balance sheet remains robust. Its customer deposits were up $19 Bn over 1H FY 2020, more than funding loan growth which increased by $5 Bn. Notably, deposit to loan ratio is now more than 75%. The bank is well capitalised, and the liquidity and funding metrics are above the regulatory requirements.
IKE Fell by 8.57% on May 4, 2020
ikeGPS (NZX: IKE) made an announcement that it has received a loan of amounting to around $825,000 under the U.S. Federal Government CARES Act Paycheck Protection Program (or PPP) via its bank named Silicon Valley Bank. As per the release, PPP authorizes loans through certified financial instructions to “small businesses”, so that they can continue to employ as well as pay their employees during crisis.
However, condition of the loan is that recipient certifies that the present economic conditions made the loan important to support ongoing operations.