The Reserve Bank will review monetary policy on Wednesday and while market pricing is leaning towards a cut to the 5.5% official cash rate, local economists are more circumspect. The higher interest rates have weighed on prices of companies typically held for their dividend, which have become less attractive relative to the safety of bank deposits.
McIntyre said those rate-sensitive stocks in property, energy and infrastructure were generally stronger today, although he noted the current energy squeeze was another inflationary pressure weighing on the central bank.
Retirement village operator Summerset Group rose 3.7% to $11.30, lines company Vector advanced 1.9% to $3.74, Investore Property was up 1.7% at $1.18, Spark NZ gained 1.6% to $4.39 on a volume of 2m shares, and Goodman Property Trust increased 1.5% to $2.06.
ANZ Group Holdings led the benchmark index higher, up 3.8% at $31.20, while Westpac Banking Corp rose 2.2% to $31.18. UBS analysts upgraded the dual-listed banks, saying they underestimated how much excess capital the lenders have.
Vista Group International extended its rally for a fifth day, rising 3.6% to $3.13. The cinema software analytics company has been on the rise since reporting fatter first-half earnings margins and indicating a stronger second half was to come.
Fletcher Building rose 2.2% to $3.19, shrugging off a weak result from James Hardie in Australia, which said weak demand weighed on its business across the Tasman.
Outside the benchmark index, PGG Wrightson dropped 9.5% to $1.81 after reporting a slump in annual profit and canning its dividend.
McIntyre said the weakness in the primary sector was already priced in, but the lack of dividend and bleak outlook weighed on the company.
Skellerup Holdings, which makes rubber goods, is due to report on Thursday. It fell 2.4% to $4.39, posting the biggest decline on the benchmark index.
Milk processor Synlait Milk fell 3.5% to 28c, while The a2 Milk Co declined 1.3% to $7.35 and Fonterra Shareholders’ Fund units declined 1.2% to $4.14. Allied Farmers rose 1.2% to 82c while rural landlord NZ Rural Land Co increased 2.2% to 92c.
Dual-listed would-be miner Santana Minerals climbed 6% to $1.41, joining a rally across the minerals sector in Australia on stronger spot gold prices.
Comvita increased 0.9% to $1.15 after announcing chair Brett Hewlett will leave the board and take over as acting chief executive due to a poor 2024 result and to focus on cutting costs and improving margins. Chief David Banfield will step down at the end of the month but still provide advice on short and medium-term goals.
Turners Automotive Group slipped 0.2% to $4.30 after saying it invested $1m in Quashed for a 13% stake in the online insurance platform.
Arvida Group, which is under a takeover offer at $1.70 a share, was the day’s most heavily traded stock, unchanged at $1.63 on a volume of 4.5m. Lender Heartland Group Holdings was unchanged at $1.06 on an unusually large volume of 2.2m, while Pacific Edge rose 9.1%, or 0.8 of a cent, to 9.6c with 1.6m shares changing hands.
Ryman Healthcare slipped 0.4% to $4.64 on a volume of 1.4m and Eroad advanced 1.5% to $1.35 on a larger-than-usual volume of 1.1m.
