Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


MARKET CLOSE Late rally as Bank of Japan acts

MARKET CLOSE Late rally as Bank of Japan acts

Jan 22 (BusinessDesk) – New Zealand stocks eased slightly until a late rally, in line with cautious sentiment across the Asian region ahead of a crucial Bank of Japan decision to loosen monetary policy, announced just before 5pm local time.

The NZX50 Index rose 1.90 points, or 0.45 percent, to 4,187.082. Within the index, 27 stocks rose, 16 fell and seven were unchanged. Turnover was $95.001 million.

“It seems to have been a bit of a pause for breath day across the region,” said Andrew Bascand, managing director and portfolio manager at Harbour Asset Management, in Wellington.

The BoJ decision, reported on Bloomberg at just after 5pm, confirmed bold steps by the Japanese monetary authorities to run a US Federal Reserve-style quantitative easing policy and a doubling in the country’s inflation target from 1 percent to 2 percent.

The moves reflect newly elected Japanese Prime Minister Shinzo Abe’s push to end two decades of deflation in what remains one of the world’s three largest economies.

“I’ve heard more commentary about Japan in the first three weeks of this year than I have in the last three years,” said Bascand. “People are calling it ‘Abe-onomics’.”

Leading gainers were Steel & Tube, up 4.31 percent to $2.66, and ASX-listed Telstra Corp, up 2.68 percent to $5.75, while PGG Wrightson rallied from falls over the last week, closing up 2.22 percent at 45 cents and is still 12.5 percent higher than a month ago.

Biggest loser on the day was aged care provider Metlifecare, which was down 2.15 percent to $3.18, while Fletcher Building came off 20 month highs, to close at $9.19, down 0.11 percent.

Fonterra Shareholders Fund also continued to lose ground won during last week’s brief spurt to above $7.50, closing the day down 1.1 percent at $7.22 per unit.

“It’s exactly where it was for the first and second weeks of January,” said Bascand, indicating last week’s price surge was caused by index-linked portfolio managers upping their holdings to reflect FSF’s entry into the NZX50 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news