Sharechat Logo

Market Close: NZ stocks snap 4-day rout on global rate cuts

Wednesday 29th October 2008

Text too small?
New Zealand stocks gained, snapping a four-day slide, as the prospects of interest rate cuts in the US, Europe and Asia helped fuel a rebound in global equity markets.

The NZX 50 Index rose 58.49 points, or 2.2%, to finish at 2745.597 at the close of trading in Wellington. The index reached a four-year low yesterday. Michael Hill International, ANZ Banking Group and Lion Nathan led the advance.

Stocks gained across Asia today, following a rally in the US and Europe. The Nikkei 225 Index rose 3% to 7850.25 in midday trading as the yen tumbled against the US dollar and amid speculation the Bank of Japan may lower its rate to 0.25%. The Dow Jones Industrial Average surged 11% yesterday and the Federal Reserve may reduce its target rate to 1% later today, to try to revive a shrinking US economy.

In Sydney, the S&P/ASX 200 Index gained 1.7% to 3902.7 in late trading. BlueScope Steel rose 11% to A$4.05, Incitec Pivot advanced 9% to A$3.75 and Santos gained 9% to A$12.70.

"Most expectations are for a rapid rebound globally," said Paul Richardson, chief investment officer at BT Funds Management. Still, "investors need to be prepared for substantial losses - you need to be buying for a five-year term."

Michael Hill rose 15% to 69 cents, trimming its decline in the past three months to 25% and leading a rebound in retailers. Warehouse Group gained 4.7% to $3.82 and Hallenstein Glasson Holdings rose 0.9% to $2.35.

New Zealand Oil & Gas rose 3.3% to $1.25 and Pike River Coal gained 6.3% to $1.36 following a jump in crude oil and a broader rally in commodities. Crude oil for December delivery rose 6.3% to US$66.71 a barrel on the New York Mercantile Exchange.

ProvencoCadmus rose 3.7% to 14 cents after the eftpos systems company said it has received indicative bids for its Vantex unit, a sale it needs to raise capital to expand. Its stock has slumped 75% this year.

Skellerup Holdings fell 1.3% to 79 cents after the company said trading in the first three months of the year met expectations, putting it on track for a full-year profit of $13.5 million.

By Jonathan Underhill

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Contact Energy Limited (NZX: CEN) Considers Green Capital Bond Offer
Tourism Holdings Limited (NZX: THL) Sells Mighway and SHAREaCAMPER to Camplify
26th October 2021 Morning Report
Harmoney Corp Limited (NZX: HMY) Prices $105m Inaugural ABS Transaction
New Zealand Rural Land Company Limited (NZX: NZL) Agreement to acquire large scale dairy asset portfolio
EROAD Limited (NZX: ERD) launches Clarity Solo Dashcam
22nd October 2021 Morning Report
Pictor ready to roll out game-changing COVID antibody test in New Zealand
Scott Technology Limited (NZX: SCT) Announces FY21 Results
21st October 2021 Morning Report