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The Reserve Bank will review monetary policy on Wednesday, and while market pricing favours a cut in the official cash rate to 5.5 per cent, local economists are more cautious. Higher rates weigh on the share prices of companies typically held for dividends, making them less attractive relative to the safety of bank deposits.
McIntyre said interest rate-sensitive stocks such as real estate, energy and infrastructure were generally stronger today, but he noted that the current energy crunch is another inflationary pressure that is weighing on central banks.
Retirement village operator Summerset Group rose 3.7 per cent to $11.30, lines company Vector gained 1.9 per cent to $3.74, Investore Property rose 1.7 per cent to $1.18, Spark NZ rose 1.6 per cent to $4.39 on volume of 2 million shares and Goodman Property Trust added 1.5 per cent to $2.06.
ANZ Group Holdings led the benchmark index higher, rising 3.8 per cent to $31.20, while Westpac Banking Corp rose 2.2 per cent to $31.18. UBS analysts upgraded the two dual-listed banks, saying they underestimated their excess capital.
Vista Group International rose for a fifth day, up 3.6 percent to $3.13. The cinema software analytics company has been on a tear since reporting higher first-half profit margins and signaling a stronger second half.
Fletcher Building shares rose 2.2 per cent to $3.19, shrugged off weak results from Australia’s James Hardie, which said weak demand was weighing on its business across the Tasman.
Outside the benchmark, PGG Wrightson fell 9.5 per cent to $1.81 after reporting a fall in annual profit and scrapping its dividend.
Mr McIntyre said weakness in the underlying sector was already factored into the share price, but the lack of a dividend and a bleak outlook were weighing on the company.
Skellerup Holdings, the rubber products maker that reports earnings on Thursday, fell 2.4 percent to $4.39, the biggest decliner on the benchmark index.
Milk processor Synlait Milk fell 3.5 per cent to 28 cents, while The a2 Milk Co fell 1.3 per cent to $7.35 and Fonterra Shareholders Fund units fell 1.2 per cent to $4.14. Allied Farmers rose 1.2 per cent to 82 cents, while rural land owner NZ Rural Land Co rose 2.2 per cent to 92 cents.
Dual-listed prospective mining company Santana Minerals rose 6% to A$1.41, tracking gains in the Australian mining sector, as spot gold prices strengthened.
Comvita shares rose 0.9% to $1.15 after the company announced that chairman Brett Hewlett will leave the board and take over as acting CEO due to poor performance in 2024 and will focus on cutting costs and improving profit margins. CEO David Banfield will step down at the end of the month but will still provide advice on short-term and medium-term goals.
Turners Automotive Group fell 0.2 per cent to $4.30 after announcing a $1 million investment in Quashed for a 13 per cent stake in the online insurance platform.
Arvida Group was the day’s most heavily traded stock, trading flat at $1.70 on 4.5 million shares, while lender Heartland Group Holdings was flat at $1.06 on unusually heavy volume of 2.2 million shares, while Pacific Edge rose 9.1 per cent, or 0.8 cents, to 9.6 cents on 1.6 million shares.
Ryman Healthcare fell 0.4 per cent to $4.64 on volume of 1.4 million shares, while Eroad rose 1.5 per cent to $1.35 on a higher-than-usual volume of 1.1 million shares.
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