NZ sharemarket joins in on US-led rally
The S&P/NZX 50 index rose 130.76 points, or 1.1%, to 11,872.64. Across the main board, 101 stocks gained, 38 fell, and 43 were unchanged.
Turnover was $126.6 million, with 10 companies trading on volumes of more than a million shares. The local market followed the lead from the US, where the S&P 500 index hit a new record led by strong gains among tech companies. Traders were buoyed by slower-than-expected inflation and shook off the Federal Reserve’s signal of a single rate cut this year when the central bank left its key rate unchanged at its latest meeting.
“Our share market is having a nice day on the back of a strong rally in the US overnight, even though the Fed signalled one rate cut, the May inflation data pointed to an easing in pricing,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. “Volumes are still very low. We’re not flowing through in the afternoon.”
Tourism Holdings led the benchmark index higher, rising 4.4% to $1.92 and extending its gain this week to 6.1%. The rental campervan operator was savaged after downgrading its earnings guidance in May and data yesterday indicated the tourism sector will continue its slow recovery from the pandemic.
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