{"id":226726,"date":"2025-10-20T05:27:08","date_gmt":"2025-10-20T05:27:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/226726\/"},"modified":"2025-10-20T05:27:08","modified_gmt":"2025-10-20T05:27:08","slug":"nz-sharemarket-up-0-4-despite-inflation-report-market-close","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/226726\/","title":{"rendered":"NZ sharemarket up 0.4% despite inflation report – Market close"},"content":{"rendered":"

The Consumers Price Index (CPI) for the September quarter was led by power prices up 11% and local authority rates up 8.8%, creating the highest inflation rate since 3.3% in the June quarter last year.<\/p>\n

ASB said the CPI has hit the top of the Reserve Bank of NZ<\/a>\u2019s (RBNZ) target again, an unhelpful milestone that has nonetheless been long expected and still hasn\u2019t stopped the bank from cutting the official cash rate 75 basis points so far in the second half of this year.<\/p>\n

ANZ said the CPI data certainly doesn\u2019t present any challenge to the bank\u2019s August forecast of underlying inflation slowing.<\/p>\n

\u201cWe continue to expect a 25bp cut in (late) November. Clearly, the high-frequency data and inflation expectations are a must-watch between now and the November monetary policy statement.\u201d<\/p>\n

Matt Goodson, managing director of Salt Funds Management, said there was no strong market reaction, either way, to the inflation outcome.<\/p>\n

There was a fear that it could have been worse, and the good thing was that the inflation pressure was sporadic, namely energy prices and council rates, and was not broad-based.<\/p>\n

\u201cWe hope to see some lower numbers in the December quarter and onwards,\u201d he said.<\/p>\n

Local stocks<\/p>\n

Utilities investor Infratil was down 6c to $12.37 after telling the market it was buying Tauranga Energy Consumer Trust\u2019s 4.92% shareholding in Contact<\/a> for $437.7m or $8.95 a share \u2013 made up of $218.8m in cash and $17.6m or $218.8m worth of new Infratil shares, priced at $12.43 a share. <\/p>\n

Infratil\u2019s stake in Contact, which was up 10c to $9.15, will increase from 9.4% to 14.32% following Contact\u2019s merger with Manawa Energy, in which Infratil had a 51% shareholding.<\/p>\n

For that transaction, Infratil sold its Manawa stake for $186m and the 9.4% shareholding in Contact.<\/p>\n

Goodson said Infratil\u2019s purchase of the consumer trust\u2019s stake removed the perception of an overhang of Contact shares from the market. But the move does provide questions for investors.<\/p>\n

\u201cThere\u2019s one view that Infratil\u2019s holding at 14.3% is purely passive. But that\u2019s a little bit unlikely as Infratil doesn\u2019t have a portfolio of passive shareholdings.<\/p>\n

\u201cAnother view is that they may consider further steps down the track, considering there\u2019s a lot of investment potential in the electricity sector,\u201d he said.<\/p>\n

Elsewhere in the energy sector, Mercury increased 16c or 2.47% to $6.65.Eroad, which is shifting its growth plans from the challenging North American market to Australasia, fell a further 8c or 4.26% to $1.80 after slumping $1 or 34.7% on Friday.<\/p>\n

Briscoe Group was down 16c or 3.08% to $5.04; Vista Group eased 8c or 2.91% to $2.67; Third Age Health declined 24c or 5.16% to $4.41; Colonial Motor decreased 20c or 2.53% to $7.70; and Blackpearl was down 4.5c or 3.88% to $1.115.Fisher and Paykel Healthcare was up 25c to $35.70; Freightways collected 11c to $13.26; Gentrack gained 33c or 3.63% to $9.43; Scott Technology increased 22c or 8.66% to $2.76; Ryman Healthcare added 6c or 2.19% to $2.80; and TradeWindow was up 2.5c or 7.04% to 38c.<\/p>\n

Investore was down 4.56c or 3.56% to $1.22 after shareholders voted in favour of buying the 7ha Silverdale Retail Centre from its parent company, Stride Property, for $114m at an initial yield of 6.8%. Stride, declining 5c or 3.4% to $1.42, will continue to manage the centre.<\/p>\n

The fully leased, open-air centre just north of Auckland city has an annual net income of $7.8m and provides Investore with 32 new tenants in its portfolio, including Chemist Warehouse, Noel Leeming and Macpac. The centre has a total of 39 tenants.<\/p>\n

Listen and subscribe to the Today in Business<\/a> podcast \u2013 the top headlines from the NZ Herald business team summarised and delivered by an AI voice as an easily digestible recap.<\/p>\n","protected":false},"excerpt":{"rendered":"The Consumers Price Index (CPI) for the September quarter was led by power prices up 11% and local…\n","protected":false},"author":2,"featured_media":226727,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[137079,48456,64,63,137081,99,15452,36211,25453,5587,98905,5465,36440,4694,171,1697,37494,137080,8207,19430,20611,7986,1610,8045,14850,3205],"class_list":["post-226726","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-137079","tag-48456","tag-au","tag-australia","tag-bogey","tag-business","tag-close","tag-comfortable","tag-despite","tag-from","tag-gain","tag-inflation","tag-made","tag-market","tag-markets","tag-nz","tag-quickly","tag-recovered","tag-report","tag-rising","tag-sharemarket","tag-start","tag-trading","tag-up","tag-week","tag-zealand"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/226726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=226726"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/226726\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/226727"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=226726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=226726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=226726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}