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The New Zealand market (NZX 50 Index, 0.5%) advanced by half a percent on Friday.  EROAD (-1.7%) fell after the release of its half year earnings. The company’s revenue increased from $48.0 million in the previous corresponding period to $85.4 million. The results noted that the company “remains on track for Normalised Revenue of between $154m – $164m” for the full year.   Ryman Healthcare (+7.0%) pared some of its recent losses, and other aged care providers rose, including Summerset (+3.8%), Oceania (+1.3%), Arvida (+0.9%). This morning, the Government has announced its intention to boost aged-care nurses’ pay by $200 million a year in an attempt to close the wage gap with hospital-employed nurses.

The New Zealand market (NZX 50 Index, 0.0%) closed flat on Thursday despite some lacklustre earnings results.   AFT Pharmaceuticals (-9.8%) cratered after reporting its half-year operating profit of $3.5 million, a 36% drop from the previous corresponding period due to “lower licensing income and increased Australasian investment to capitalise on growth opportunities”. At the same time, the company reported a 18.4% jump in revenue. Rakon (-7.0%) fell similarly after reporting its result for the six months to 30 September 2022. Total revenue for the components manufacturer rose 2% to $87.2 million with core business growth and a weak NZ dollar helping offset the decline in unusually high demand that proceeded the post-covid chip shortage.

The New Zealand market (NZX 50 Index, -0.9%) fell on Wednesday after the Reserve Bank of New Zealand decided on a 75-basis-points rate hike (touting the possibility of a 100-point hike) taking the Official Cash Rate (OCR) to 4.25%. Further, the Reserve Bank now expects the OCR to peak at 5.5%, much higher than the 4.1% peak they had signalled 3 months ago.  

The New Zealand market (NZX 50 Index, -0.2%) fell slightly on Tuesday, with Ryman Healthcare (-7.1%) dragging the index lower. As noted in an earlier report, The company is experiencing cashflow issues arising from a less liquid housing market meant net debt rose +$400m over the half to $3 billion.

The New Zealand market (NZX 50 Index, +0.5%) advanced on Monday, with Financials (+2.6%) far outperforming other sectors. The catalyst for the sectors performance is of course the Reserve Bank of New Zealand delivering another interest rate hike this Wednesday at 2.00pm. Markets are expecting a 75-basis-points hike, taking the Official Cash Rate to 4.25%, although a 50-basis-points hike is entirely possible. 

The New Zealand market (NZX 50 Index, +0.8%) rose on Friday on the back of gains by Energy generators, including Mercury (+4.1%), Contact (+3.1%), and Meridian (+2.2%). 

US markets (S&P 500 Index -0.6%) fell overnight as interest rate induced recession fears grip the market causing almost all sectors to fall.   Investors digest comments from Fed officials “the policy rate is not yet in a zone that may be considered sufficiently restrictive” – reiterating a much more hawkish stance to fight against inflation. He told reporters after a speech that in the past he had said the Fed Funds rate needed to get to 4.75-5% but he now thought 5-5.25% was needed and “that’s a minimum level”.

The New Zealand market (NZX 50 Index, 0.1%) was a touch lower on Wednesday as investors brace for more corporate earnings.  Pacific Edge was up +3.1% with investors eagerly wait for their result next week but more importantly, provide light on whether Medicare provider Novitas will continue using Pacific Edge’s Cxbladder tests.

The New Zealand market (NZX 50 Index, +0.1%) ended flat on Tuesday, while Communication Services (-0.6%) and Real Estate (0.4%) took a hit, with Kiwi Property Group (-2.8%) and Investore Property (-1.3%) leading losses for the latter.