Alexa
  • Directory of Taiwan

New Zealand stocks slip as investors take profits, eye interest rates

New Zealand stocks slip as investors take profits, eye interest rates

New Zealand stocks slipped Monday and brokers expect market sentiment to remain cautious ahead of the central bank's rate-setting meeting early next month.
The benchmark NZX-50 was down 9.7 points, or 0.2 percent, at 4,110.61.
With interest rates and the high New Zealand dollar affecting so many recent results, the market is nervous as to what the March 8 Reserve Bank decision will mean for corporate earnings going forward, said Jennifer Moreton, a South Island-based adviser with ABN AMRO Craigs.
There are widespread expectations that the bank will hike a key interest rate, currently 7.25 percent, by a quarter point.
Blue chip power firm Contact Energy brushed a fresh all-time high of NZ$9.01 during the session, before settling unchanged at NZ$8.95 in a late burst of profit-taking.
Bellwether Telecom Corp. fell 0.8 percent at NZ$4.91, a move Moreton described as a good performance considering it is trading minus a 7 cent share quarterly dividend paid out Friday.
Rural services firm PGG Wrightson closed down 1.3 percent at NZ$1.54 after reporting a higher first-half net profit but sounding a note of caution that trading conditions are difficult as the high New Zealand dollar dents farmer returns.
Exporters also continued to feel the pressure of the New Zealand dollar, which is trading just below US$0.7100.
Fisher & Paykel Healthcare, which generates much of its revenue in U.S. dollars, closed down 0.8 percent at NZ$3.89, a five-month low, while seafood exporter Sanford fell 0.6 percent to NZ$5.02.


Updated : 2021-10-24 05:54 GMT+08:00