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Sharemarket stock mixed, ending the week 3.8% lower amid investor pessimism

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The stock market ended the week with votes, after a muted shutdown on Wall Street and a rebound in Asia.

The benchmark S&P/NZX 50 index slipped 0.08%, or 9.18 points, to 11,168.18 on Friday. In the broader market, 76 stocks fell, while 60 stocks rose.

“A little bit of negativity is very positive looking at the rest of the week,” said Grant Davis, investment advisor at Hamilton Henden Green. “It’s around break even today, and unfortunately it doesn’t really follow the rest of Asia because the Asian markets are all very positive today.

“There’s a little bit of pessimism in the market in general, given the sell-off we’ve seen so far this year,” he said.

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The domestic benchmark index has fallen 3.8 percent this week and is down 14 percent so far this year as investors fear high inflation will lead to a sharp rise in interest rates and risk an economic slowdown or recession.

Davies noted that domestic interest rates have eased this week, with the one-year swap rate dropping from 3.475% to 3.105%.

He said that while lower interest rates were generally positive for the stock market, they also indicated that investors see worse economic times ahead.

Wall Street had an erratic day of trading on Thursday with mixed results as investors struggle to understand what's next for inflation and the US central bank's response to it.

John Minchillo/AFP

Wall Street had an erratic day of trading on Thursday with mixed results as investors struggle to understand what’s next for inflation and the US central bank’s response to it.

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Davies noted that a lower New Zealand dollar makes some imported goods like fuel more expensive, but it benefits exporters and the tourism sector as well.

The New Zealand dollar fell to about 63 cents from 70 cents in late March.

Shares of Fisher & Paykel Healthcare, which exports most of its products, rose 3.4% to $21.05.

Auckland International Airport, which benefits from more travelers arriving in New Zealand if the country is a cheaper destination, rose 2.8% to $7.30.

Warehouse Group jumped 7.6% to $3.39 after that Posted by 2.5% decline in third-quarter sales to $771.6 million.

It was a good result, Davis said, and reflected that the same period last year benefited from higher post-Covid spending that was hard to replicate.

The Aged Care segment will announce earnings results over the next few weeks. Ryman Healthcare rose 1.5% to $9.39, Oceania Healthcare rose 2.1% to 99 cents, Arvida Group rose 2% to $1.50, and Summerset Group was unchanged at $10.64.

On Thursday, the S&P 500 index closed 0.1% lower, after falling 1.9% earlier in the day. The Dow Jones Industrial Average fell 0.3%, while the Nasdaq rose 0.1%.

– with AP

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