Is NZX 50 Rising on Cues from Positive Monetary Policy Update?

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On April 14, 2021, after a positive range bound trading, NZX 50 gained momentum during last trading hours and closed higher at 12,751.38, that reflects an upside of 0.75%. The rise was aided by RBNZ announcement that the Monetary Policy Committee provided their consent to retain the existing stimulatory level of monetary settings so that consumer price inflation and employment objectives are achieved. The Committee has decided to retain Cash Rate at 0.25%, and the Large Scale Asset Purchase and Funding for lending programmes unchanged. In addition to this, the investors tracked positive vibes from trade in Asian Pacific reign.

Source: NZX

MidCap and SmallCap outperformed broader market: The broader market, S&P/NZX 50 Index stood at 12,751.38, reported an increase of 25.52% in one year, while MidCap Index and SmallCap that stood at 6,263.87 and 21,653.17 points respectably, outperformed the S&P/NZX 50 Index and reported a growth of 33.62% and 75.52% respectively, indicating strong resilience in Midcap and Smallcap stocks over the period.

S&P/NZX 50 Index versus SmallCap Index versus MidCap Index – 1 Year Return

Source: Refinitiv (Thomson Reuters)

Top Gainers:

On April 14, 2021, Geo Limited (NZX: GEO) responded to the price enquiry by NZX Limited. As per the release the price of GEO rose from $0.098 (market open price on 24th March 2021) to $0.125 (price at 12:00 PM on 14 April 2021), reflecting an increase of $0.027, or 27.5%. Considering this increase in the price, NZX Limited asked whether the company continues to comply with Listing Rule 3.1.1.

On April 14, 2021, Savor Limited (NZX: SVR) stated that Louise Alexander (Director) is holding 231.3953 ordinary shares.

Top Losers:

On April 14, 2021, My Food Bag Group Limited (NZX: MFB) stated that it would be releasing its annual results for the financial year ended 31st March 2021 on 21st May 2021.

AMP Limited (NZX: AMP) has confirmed the withdrawal of Resolution 4 from 2021 notice of Annual General Meeting, relating to the approval of the long-term incentive for the CEO.

On April 13, 2021, Comvita Limited (NZX: CVT) revised its full year Operating EBITDA to be in the range of $22.5-$25.5 million from previously range of $20-$23 million, driven by robust growth in the focus markets of China as well as North America (offsetting ANZ as well as Hong Kong challenges). Apart from this, robust performance in the digital channel (accounting for more than 30% of group sales), continued efficiencies in production along with cost control measures, are the factors behind the increase in the guidance.

Source: NZX

Movements on Wall Street

On April 13, 2021, Dow Jones Industrial Average decreased by 0.20% to 33,677.27. However, NASDAQ Composite recovered from its early trading session of the day and closed higher by 1.05% to 13,996.10.

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