“At this level, the bond yields definitely impact the valuations of the growth and technology stocks,” he said.
“In New Zealand, Hallenstein Glasson is going really well with its share price hitting an all-time high. Australia is the major growth engine, but its New Zealand stores were robust. The company was helped by the strong Aussie dollar.”
On Wall Street, the Dow Jones Industrial Average fell 0.67% to 51,481.51 points; the S&P 500 fell 0.77% to 7683; and the Nasdaq Composite fell 0.92%.
The higher energy costs (Brent Crude oil was trading at US$107.40/NZ$189.83 a barrel) added to expectations of further Federal Reserve interest rate hikes.
The Japanese Nikkei 225 fell 1.4%; Hong Kong Hang Seng fell 0.71%, and the South Korean Kospi Index fell 0.9% at 6pm NZ time.
The S&P/ASX 200 Index was down 0.08% to 8672.5 points after the Reserve Bank of Australia (RBA) lifted its cash rate, as expected, by 25 basis points to 4.6% – its highest level in 15 years and the fourth rate rise this year because of persistent high inflation.
Sullivan said the nearly 200-basis-point cash rate differential explained the currency situation between NZ and Australia.
NZ’s Official Cash Rate is 2.75%, and the NZ dollar is trading at A80.6c to the Australian dollar.
Local stocks
At home, Hallenstein Glasson was up 75c or 5.66% to a new high of $14 after reporting a 19.6% increase in revenue to $563m and 49.9% rise in net profit $59.16m for the 12 months ending August 1.
The retailer’s share price has more than doubled over the past two years, sitting at $6.40 in September 2024. It has risen from $9 in the past 12 months and has gained more than 50% so far this year.
Hallenstein Glasson said its annual result benefited from a stronger Australian dollar, and on a constant-currency basis, group sales were up 15.6% from the previous year. It is paying a final dividend of 40c a share on December 9.
The gross margin increased 240 basis points to 61.7%, reflecting stronger sales at full prices and working closely with suppliers and freight forwarders to secure the best possible rate.
Group sales were 18.4% ahead for the first eight weeks of the new financial year compared with the same period last year.
Fellow retailers Briscoe was down 6c to $4.26; KMD Brands dipped 2c to $1.88; and The Warehouse was up 2c or 3.28% to 63c on the eve of reporting its annual result.
Auckland International Airport shed 15c, or 1.76%, to $8.35; Freightways fell 27c, or 2.15%, to $12.28; and Channel Infrastructure fell 13c, or 3.60%, to $3.48.
Summerset declined 24c or 3.22% to $7.22; a2 Milk retreated 24c or 2.82% to $8.27; and Third Age Health fell 25c or 5.29% to $4.48.
Tech stocks Vista Group fell 9c, or 3.24%, to $2.69, and Serko fell 5c, or 3.76%, to $1.28.Interest rate-sensitive property stocks were weaker. Property for Industry fell 5c, or 2.2%, to $2.22; Stride fell 2.5c, or 2.3%, to $1.06; and Precinct shed 2c, or 2.11%, to 93c.
In the energy sector, Meridian fell 16c or 2.87% to $5.42; Contact fell 13c to $8.60; and Genesis fell 7c or 2.75% to $2.48.
Among the gainers, Sky TV was up 6c or 1.74% to $3.50; Winton Land gained 2c or 1.79% to $ 1.14; and Synlait Milk increased 1c or 2.38% to 43c.
Tourism Holdings was up 3c to $2.93 after telling the market that the due diligence involving takeover bidders was “progressing constructively and in good faith”.
The company has been given additional time for bidders to complete their assessments because of the complexity of Tourism Holdings’ operations. The company named Lisbon-based Indie Campie as the second bidder, alongside the BGH consortium.
NZX, up 1c to $1.49, announced that Paris-based BNP Paribas has become the first global financial services firm to be accredited as a general clearing and settlement participant for cash market transactions.
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