How are 5 NZX financial stocks faring after RBNZ held OCR at 0.25%?

Highlights

  • The RBNZ has notified to retain the OCR level at 0.25%, after the declaration of nationwide alert level 4 lockdown by the New Zealand Government.
  • In wake of the current lockdown across the country, Geneva Finance postpones its Annual Meeting of shareholders, which otherwise was originally scheduled for 24 August.
  • Kingfish announces to pay a quarterly dividend next month.

Following the New Zealand government’s imposition of alert level 4 lockdown across the nation, the RBNZ announced on 18 August that its Monetary Policy Committee had decided to retain the Official Cash Rate (OCR) at 0.25%.

It will continue to assess the nation’s employment scenario, as well as the inflation rate to systematically decrease the current stimulatory level of monetary settings. The announcement came after the recent halt of the purchase of the additional government bonds under LSAP (Large Scale Asset Purchase) in July 2021.

Amid this backdrop, let us skim through the five NZX-listed financial stocks.

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Geneva Finance Limited (NZX:GFL)

This NZ-based financial company offers finance, plus financial services to the consumer credit as well as various small to medium business markets. It offers personal loans, car financing, insurance operations, etc.

Following the NZ Government's recent announcement related to the nationwide alert level 4, the Company has postponed its Annual Meeting of shareholders, which was earlier supposed to be held in person on 24 August.

GFL will soon intimate its shareholders regarding the new date, time, and venue.

On 23 August, at the closing bell, Geneva Finance fell by 1.30% at NZ$0.760.

Related Read: Are these 6 NZX stocks the biggest movers and shakers of the day?

Heartland Group Holdings Limited (NZX:HGH)

Offering financial services across Australasia, Heartland Group Holdings Limited will reveal its FY2021 results on 24 August 2021.

It will hold its Annual Meeting on 28 October, details of which will be shared soon. Moreover, 30 August is the last date for receiving director nominations.

At the market close, Heartland Group Holdings declined by 2.78% at NZ$2.100, on 23 August.

Must Read: Which are the top 15 dividend stocks on NZX?

Harmoney Corp Limited (NZX:HMY)

Established in 2014, Harmoney Corp Limited offers personal loans across Autslaiasia. The Company has facilitated loans worth billions to more than 50,000 customers.

In its recently announced 2HFY21 results, the Company delivered a strong performance with the highest originations worth NZ$53 million in June 2021, while the total group originations clocked at NZ$250 million during the said period, underpinned by a significant increase in new customer originations.

HMY looks poised for FY22, with a clear strategy of growing attractive margin personal loans throughout Australasia.

Shares of Harmoney Corp were down by 3.55% at NZ$1.900, on 23 August, at the end of the market session.

Recommended Read: What are the top 10 NZX-listed financial companies?

Barramundi Limited (NZX:BRM)

Barramundi Limited is an NZ-based investment company that invests in the Australian equity market.

The Company has recently announced the renewal of its management agreement with Fisher Funds Management Limited, a specialist investment manager for a period of five years, i.e., till October 2026.

The renewal decision was undertaken after a thorough review of Fisher's investment performance as well as its administrative and corporate services.

On 23 August, Barramundi was flat at NZ$1.020, at the market close.

Also Read: Why are financial services essential? A look at 5 related stocks

Kingfish Limited (NZX:KFL)

Another company managed by Fisher Funds is Kingfish Limited, which invests in the New Zealand equity market. The Company has announced today to pay its quarterly dividend of 3.52 cps on 24 September, the record date is 9 September.

At the closing bell, Kingfish gained 0.50% at NZ$2.010, on 23 August.

Related Read: Why are 10 NZX dividend stocks popular among investors?

Bottom Line

After the initial shock in 2020, the NZ economy rebounded strongly, with almost all the sectors back on the revival mode. However, with the resurgence of COVID-19 cases across the country, the Government is reviewing its monetary and fiscal settings to support spending and investment across the nation.

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