This marked the first time since March 2021 that respondents had an overall negative view of the labour market.
Westpac senior economist Darren Gibbs noted that this decline reflected workers’ growing perception that it’s becoming increasingly challenging to secure employment.
Smith said the data are a sign that consumers are starting to “price in” the gloom around the outlook of the economy.
The Warehouse Group reports its full-year results tomorrow, while Hallenstein Glasson Holdings reports on Friday. Smith said it would be interesting to see how the retailers’ outlook “squared up” with the survey.
The Warehouse hasn’t provided revenue or earnings guidance for the full year, but Hallenstein told the market at the end of August that group sales for the 12 months ended August 1 were $409.7m, up 16.7 per cent on the prior year of $351.2m in group sales.
Group net profit after tax is expected to be within the range of $31.8m to $32.3m, an increase of approximately 25.2 per cent on the prior year ($25.6m).
The Warehouse Group was up 1 cent or 0.6 per cent to $1.75 on Wednesday while Hallenstein Glassons was down 5 cents or 0.9 per cent to $5.75.
In an update to the market on Wednesday, fleet company Eroad announced that “approximately $50m in gross proceeds” was raised via the company’s equity raise.
Chair Susan Paterson said the $50m would help its capital structure as Eroad continued to add “game-changing functionality” for its customers and launched its decarbonisation tool.
The stock fell 3 cents or 4.3 per cent to 67c.
Geneva Finance told the market this morning that the Reserve Bank of New Zealand (RBNZ) had initiated an investigation into an insurance company owned by Geneva.
The investigation concerns potential violations of the Insurance (Prudential Supervision) Act, primarily related to the insurance company’s failure to establish a statutory fund when required and maintain the minimum solvency margin mandated by its insurance license conditions.
Quest Insurance Group, the subsidiary of Geneva Finance, maintains that it had sufficient funds to meet its obligations. These concerns pertain to actions in 2021 and 2022, and Quest had self-reported the issues.
Geneva’s annual report for the year ending March 31 reveals that Quest reported a pre-tax profit of $4.4m, down 6 per cent from the previous period.
The decrease was due to higher claims costs, notably from the Auckland floods and, to a lesser extent, claims from Cyclone Gabrielle. Geneva Finance shares were flat at 40.5c per share by early evening.
Shares in real estate investment company Argosy Property were also flat at $1.10. Today, it told the market it had concluded leasing transactions over further green-certified space in its portfolio.
“As the market changes, it is clear that occupiers have a strong and increasing preference for green buildings,” chief executive Peter Mence said.
This includes entering into a 12-year lease conditional agreement with Niwa for approximately 2,650 square metres on the ground floor and level one of 82 Wyndham St, Auckland.
The company said the lease will start on January 1 and includes 80 car parks.
“We are very pleased to have retained Niwa in the portfolio. The market demand for green buildings remains strong,” Mence said. Property developer Mansons TCLM has exercised its option to extend the settlement date on the purchase of a large Auckland office building, formerly the Auckland Council service centre at 35 Graham St, from its listed landlord Asset Plus.
The original sale price was $65m plus GST, with plans for potential redevelopment. Mansons’ decision to extend the settlement date by 12 months to November 29, 2024 has led to an increased purchase price of $68m, along with a higher deposit requirement of 20 per cent of the new price.
Asset Plus was up 1c or 4.2 per cent to 25c.
Goodman Property was up 1c or 0.5 per cent to $2.11, Precinct Properties fell 3c or 2.6 per cent to $1.14, and Kiwi Property was down half a cent or 0.6 per cent to 84.5c.
Investore Property was down 2c or 1.6 per cent to $1.27, as was Property for Industry, which fell 1c or 0.4 per cent to $2.25.
The New Zealand dollar was trading at US59.44c at 3pm in Wellington, down from US59.65c on Tuesday. The trade-weighted index was at 70.57, from 70.67 on Tuesday.