Matt Goodson, managing director of Salt Funds Management, said private sector wage inflation eased but the public sector was still strong. The unemployment data caused a modest decline in bond yields, with the New Zealand 10-Year Government Bond yield drifting to 5.51 per cent.
“This provides hope that the Reserve Bank will keep the official cash rate (OCR) on hold and interest rates will start easing mid to late next year,” he said.
ANZ Research said the labour market continued to move in the right direction for the Reserve Bank but there’s still a fair way to go to generate the necessary slack and get on top of domestic inflation.
ANZ is still forecasting a further 25 basis points rise in the OCR but it may now be later than February and “indeed no further hikes if the ducks line up”.
The major United States indices also had rises for the second successive day, gold continued to fall to US$1975.73 an ounce, and the NZ dollar was weaker at US58.05c against the American greenback after hitting an intraday low of US57.88c.
The NZX index was working in tandem with its Australian counterpart with the S&P/ASX 200 Index up 0.72 per cent to 6829.2 points at 6pm NZ time.
Transport and logistics companies Mainfreight and Freightways, under earnings pressure and missing the usual positive investor sentiment, continued to make headway. Mainfreight rebounded a further $1.10 or 1.94 per cent to $58.35 and Freightways rose 40c or 5.37 per cent to $7.85.
Market leaders Meridian was up 6c to $4.89, Fisher and Paykel Healthcare increased 29c to $21.10; Ebos Group added 78c or 2.23 per cent to $35.77; and Auckland International Airport gained 11c to $7.45.
Infratil rose 33c or 3.36 per cent to $10.15; Synlait gained 6c or 4.51 per cent to $1.39; Heartland Group was up 5c or 3.27 per cent to $1.58; and Smartpay Holdings increased 8.5c or 6.54 per cent to $1.385.
Gentrack was up 20c or 4.08 per cent to $5.10; Sanford gained 11c or 2.93 per cent to $3.87; NZME improved 4c or 4.82 per cent to 87c; PaySauce increased 1.3c or 7.65 per cent to 18.3c; and AFT Pharmaceuticals collected 6c or 1.8 per cent to $3.40.
Mercury Energy fell 22.5c or 3.81 per cent to $5.675; Chorus was down 8.5c to $7.09; Arvida Group shed 4c or 3.45 per cent to $1.09; Seeka decreased 8c or 3.32 per cent to $2.33; and Vital Healthcare Property Trust declined 5c or 2.5 per cent to $1.95.
Stride Property, volatile of late, was down 6c or 4.41 per cent to $1.30; SkyCity Entertainment declined 4c or 2.14 per cent to $1.83; and Rakon decreased 4c or 5.71 per cent to 66c.
Transport technology company Eroad was up 2c or 3.08 per cent to 67c after announcing two new deals in Australia for its vehicle tracking devices. Eroad has expanded its existing partnership with construction firm Boral and become the preferred supplier for Woolworth’s 1100-strong fleet.