{"id":191519,"date":"2025-12-19T09:20:08","date_gmt":"2025-12-19T09:20:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/191519\/"},"modified":"2025-12-19T09:20:08","modified_gmt":"2025-12-19T09:20:08","slug":"nz-sharemarket-rallies-on-index-changes-confidence-survey-market-close","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/191519\/","title":{"rendered":"NZ sharemarket rallies on index changes, confidence survey \u2013 Market close"},"content":{"rendered":"The bank raised its policy rate by 0.25 percentage points to around 0.75%.<\/p>\n
Salt Funds managing director Matt Goodson said 2026 would show an interesting \u201cdispersion\u201d among the central banks.<\/p>\n
\u201cAustralia may well have to hike, possibly as early as February, and quite likely by May, and the Bank of England cut last night,\u201d he said.<\/p>\n
He noted the European Central Bank had remained on hold and the US Federal Reserve had cut this month and may well cut again early next year.<\/p>\n
The market is pricing in a New Zealand rate hike \u2013 perhaps later next year \u2013 but Goodson said there was a good chance the Official Cash Rate would remain at 2.25%.<\/p>\n
\u201cThere are going to be quite different monetary policy directions next year, which could lead to quite different foreign currency movements,\u201d he said.<\/p>\n
The BoJ\u2019s move could also influence the Japan \u201ccarry trade\u201d where Japanese investors use cheap money to invest, unhedged, offshore \u2013 often in property or high-yielding securities.<\/p>\n
Then there were the foreign investors who borrowed in Japan at very low rates and invested back in their home markets, also without currency hedges in place.<\/p>\n
\u201cThat carry trade will be under more and more pressure,\u201d Goodson said. \u201cIt\u2019s potentially quite important for investment markets more broadly.\u201d<\/p>\n
Locally, index upweightings to the NZX50 added fizz and volume to the market.<\/p>\n
Vital Healthcare increased its index weighting after its recent equity raising, and it was a similar story for SkyCity and Precinct.<\/p>\n
Vital, which is also due to enter a key FTSE real estate index, ended the day down 3.5c at $1.94 with 18.6 million shares trading.<\/p>\n
SkyCity gained 4c to 89c with 7.6 million shares trading, while Precinct dropped a cent to $1.16 with 14.6 million shares going through.<\/p>\n
News that the ANZ\u2019s business confidence reading hit its highest level in 30 years over December helped to buoy the market.<\/p>\n
ANZ said a net 74% of respondents expected better business conditions, up seven points.<\/p>\n
Businesses\u2019 expected \u201cown activity\u201d rose seven points to a net 61%, also its highest level in 30 years.<\/p>\n
\u201cHistorically, it\u2019s been a pretty good forward indicator for GDP growth six to 12 months down the track,\u201d Goodson said.<\/p>\n
\u201cThat\u2019s a very encouraging survey for the economy.\u201d<\/p>\n
Exchange operator NZX gained 2c to $1.50 after announcing that NZX Wealth Technologies (NZXWT) had done a deal with Craigs to extend the services NZXWT provides Craigs to include Craigs\u2019 custody and private wealth business.<\/p>\n
NZXWT has administered Craigs\u2019 clients investing in mySTART, Craigs KiwiSaver and Craigs Superannuation on the platform since 2018.<\/p>\n
Among the big names to gain were Fisher and Paykel Healthcare, up 19c to $37.10; Ebos, up 60c to $27.53; and Infratil, up 28c at $10.98.<\/p>\n
Among the smaller issues, Eroad rallied by 9c to $1.20.<\/p>\n
Trade Window, which listed on the ASX today, dropped 2c to 29c.<\/p>\n
Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.<\/p>\n
Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our\u00a0Business newsletter<\/a>\u00a0\u2013 your essential weekly round-up of all the business news you need.<\/p>\n","protected":false},"excerpt":{"rendered":"The bank raised its policy rate by 0.25 percentage points to around 0.75%. Salt Funds managing director Matt…\n","protected":false},"author":2,"featured_media":191520,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[74,11231,138,4500,651,2950,9832,13986,225,111,139,69,90,12937,33244,42569,17524,48992,2122,1125,643,18835,8822,80],"class_list":["post-191519","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-after","tag-boost","tag-business","tag-changes","tag-close","tag-confidence","tag-helped","tag-index","tag-market","tag-new-zealand","tag-newzealand","tag-nz","tag-on","tag-prices","tag-raft","tag-rallied","tag-rallies","tag-sentiment","tag-share","tag-sharemarket","tag-stocks","tag-strong","tag-survey","tag-zealand"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/191519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=191519"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/191519\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/191520"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=191519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=191519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=191519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}