Helped by smaller increases in food and travel, the Australian October consumer price index showed a fall in inflation to 6.9 per cent, from 7.3 per cent in September, and below the expected 7.4 per cent. New Zealand inflation is 7.2 per cent.
Economists across the Tasman are now saying inflation may be nearing a peak but not quite yet due to the impact of energy prices and flooding.
The S&P/ASX 200 Index was up 0.35 per cent to 7279 points at 6pm NZ time. Investors were also watching out for US Federal Reserve chair Jerome Powell’s latest speech on monetary policy overnight.
Jeremy Sullivan, investment adviser with Hindin Hamilton Greene, said Germany also had a half per cent rise in October – running at annualised inflation of 6 per cent – and “maybe we are seeing some green shoots of inflation slowing.
“This is good for interest rate expectations and with them coming down, company asset values will go up,” said Sullivan.
The latest ANZ survey showed business confidence fell 14 points in November to minus 57 and own activity was down 11 points to minus 14, just eight points shy of 2009 lows.
The bank said the survey clearly indicates weaker activity ahead which is what the Reserve Bank is trying to bring about in order to lower inflation pressure.
Fisher and Paykel Healthcare had its second successive strong day after reporting a better-than-expected half-year result, rising 79c or 3.46 per cent to $23.60 on trade worth $72.6m.
Auckland International Airport was up 22c or 2.81 per cent to $8.04 on trade worth $49.6m; a2 Milk increased 9c to $6.65; Fletcher Building gained 13c or 2.56 per cent to $4.95; Freightways collected 25c or 2.56 per cent to $10; and Skellerup added 14c or 2.57 per cent to $5.59.
The energy sector had a strong day. Meridian increased 15.5c or 3.27 per cent to $4.895, Contact gained 16c or 2.18 per cent to $7.49; Mercury rose 25.5c or 4.86 per cent to $5.50; and Vector was up 9c or 2.2 per cent to $4.18.
Port of Tauranga increased 11c to $6.34, and Napier Port rose 13c or 4.73 per cent to $2.88 after completing its buy back of 125,000 shares.
Utilities software firm Gentrack continued to surge after increasing revenue and upgrading its full-year guidance, climbing 38c or 19 per cent to $2.38. It has risen more than 37 per cent in two days.
Precinct Properties, gaining 7c or 5.79 per cent to $1.28, is buying 61 Molesworth St in Wellington – home to the Ministry of Foreign Affairs and Trade – and will be developing an 11 level, 24,000 sq m office building on the site.
Asset Plus, up 1c or 4.55 per cent to 23c, told the market it has sold bare land in Kamo, Whangarei. It is also selling the Auckland Graham St building and is marketing its Stoddard Rd property.
Other property companies Goodman Trust rose 8.5c or 4.26 per cent to $2.08, and Kiwi Property was up 2c or 2.2 per cent to 93c.
More gainers were Tourism Holdings adding 11c or 3.07 per cent to $3.69; Ventia Services up 11c or 4.06 per cent to $2.82; Sanford increasing 11c or 2.56 per cent to $4.40; Synlait Milk collecting 10c or 3.39 per cent to $3.05; and PGG Wrightson up 10c or 2.47 per cent to $4.15.
Chair Greg Campbell is stepping down from Ryman Healthcare’s board because of health issues and long-serving director Claire Higgins steps up as interim chair. Ryman’s share price was down 5c to $6.65.
Other decliners were SkyCity shedding 5c to $2.76; Move Logistics, down 3c or 2.91 per cent to $1; CDL Investments decreasing 5c or 6.25 per cent to 75c; and Rua Bioscience down 2c or 8.33 per cent to 22c.
Retailers Briscoe Group was down 13c or 2.61 per cent to $4.85, and KMD Brands was up 5c or 4.76 per cent to $1.10.
Third Age Health, unchanged at $1.79, earlier reported a net profit of $324,000 on revenue of $4.67m, up 61.2 per cent, for the six months ending September and is paying an interim dividend of 2.44c a share on December 16.
