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Highlights
The NZX50 drops 0.9% on global cues
- Inflation data in the US disappoints
- This could trigger higher interest rates from the US Federal Reserve
The New Zealand share market dropped today on cues from global markets. US inflation data announced on Tuesday disappointed investors as the numbers did not show that inflation was slowing down. The Fed is now expected to increase the interest rate by 75 bps again.
The NZX 50 fell 0.9% to 11,658 in today’s trade after being in the red the whole day. A total of 104 stocks fell and 31 gained with 27.97 million as the market volume. The turnover for the day was NZ$117.82 million.
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The top gainers in today’s trade were SmartPay Holdings Limited (NZX:SPY), up 5.11% at NZ$0.720, Arborgen Holdings Limited (NZX:ARB), up 4.55% at NZ$0.230, Warehouse Group Limited (NZX:WHS), up 3.43% at NZ$3.62, Vital Limited (NZX:VTL), up 2.78% at NZ$0.370, and New Zealand King Salmon Limited (NZX:NZK), up 2.17% at NZ$0.235.
The decliners in today’s trade were Me Today Limited (NZX:MEE), down 16.67% at NZ$0.015, Cannasouth Limited (NZX:CBD), down 5.48% at NZ$0.345, Wellington Drive Technologies (NZX:WDT), down 4.90% at NZ$0.136, and Plexure Group Limited (NZX PX1), down 4.35% at NZ$0.330.
Among other stocks, technology stocks dipped on the prospect of interest rate hikes, and the healthcare company Fisher and Paykel (NZX:FPH) was down 1.5% to NZ$20.22.
Briscoe, which announced its half-year results today, closed the day 2.1% up to NZ$5.46. The retailer said it was very pleased with the results despite “significant headwinds like the Omicron surge and the rising cost of living.” The Company also rewarded the shareholders with an increased interim dividend of 12 cps, from 11.5 cps last year.
Global markets
In the US, all indices were down. The S&P 500 sank 4.3%, the Dow Jones fell 3.9%, and the NASDAQ composite closed 5.2% lower. Most regional benchmarks in Asia fell more than 2%. Sydney's S&P/ASX 200 declined 2.4% to 6839.50.
European indices were also down as US inflation heated up further. Europe’s Stoxx 600 fell 1.6% and the UK’s FTSE was down 1.2% on the news of the US inflation.
Oil prices were extending gains from the previous (Tuesday’s session) as investors were worried about the tight supply ahead of the winter heating season. Brent crude rose 5 cents to US$94.05 a barrel, while WTI crude rose 7 cents to US$87.85 a barrel.