“It’s given back a bit of ground, and that ground that we have given back has been post the Reserve Bank update. The terminal rate was slightly higher than market was anticipating, so we’ve seen the NZ/US dollar exchange rate tick up about 0.5%,” Sullivan said.
Key to the sharemarket’s rise was the half-year result from Fisher & Paykel Healthcare.
The company’s share price rallied 4.63% or $1.70 to $38.40 on turnover worth $44.2m after its result, in which it delivered an 18% increase in total revenue and a 39% increase in net profit.
The company also updated its full-year guidance, lifting its expected operating revenue to sit in the range of about $2.17 billion to $2.27b.
“It was a fantastic result. Approximately $1b in revenue, lifting guidance, expanding margins, it’s a very good-quality healthcare exporter in New Zealand and a clear global growth runway for them,” Sullivan said.
The Reserve Bank of New Zealand cut the Official Cash Rate (OCR) by 25 basis points to 2.25%.
Sullivan said it was as the market had expected, but he believed the chances of another rate cut in February had been reduced.
Elsewhere, Genesis Energy held its investor day today, where it announced more details on its Gen 35 strategy, and confirmed its earnings growth is on track.
“I guess the key takeaway there is that it seems to be executing on its renewable strategy and maintaining a disciplined dividend framework, so sort of steady as she goes really for them.”
Genesis’ share price lifted 0.41% or 1c to $2.46.
The OCR update supported a late boost to Channel Infrastructure’s share price, which rose 3.33% or 9c to $2.79 after 2.1 million shares changed hands on turnover worth $6.1m.
Fletcher Building followed suit, lifting 1.53% or 5c to $3.32 on turnover worth $7.5m.
Meanwhile, Infratil’s share price fell on turnover worth $6.03m, losing 2.28% or 26.75c to close at $11.44.
Wall Street stocks shrugged off early weakness on Tuesday and joined European bourses in rising on continued hopes the US Federal Reserve will cut interest rates next month.
The prospect for further interest rate easing helped offset lingering worries about whether artificial intelligence equities are overvalued, while a trove of mixed US economic reports included some worrying signs that analysts said likely strengthened the Fed’s case for cutting rates.
All three US indices advanced, led by the blue-chip Dow index, which climbed 1.4%. Earlier, London, Paris and Frankfurt all pushed higher.
More broadly, oil prices retreated amid reports that a deal to end the war in Ukraine may be close, which, if confirmed, would allow Russia to export a vastly larger amount of oil.
– Additional reporting AFP
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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