Sharemarket creep higher as rate review, earnings come into focus

The S&P/NZX 50 Index rose 37.79 points, or 0.3%, to 12,281.25. Across the main board, 82 stocks gained, 56 fell, and 41 were unchanged. Turnover was $71.1 million in relatively quiet trading, with just four companies trading on volumes of more than a million. 

Vista rose for a fourth session, up 5.2% at $3.02. The cinema software developer was one of the first companies to report this season, narrowing its first-half loss and fattening its margins while pointing to successful franchise movies set for release in the second half of the year. 

Earnings seasons doesn’t hit its stride until next week, and Wednesday’s monetary policy review will be keenly watched to see whether the Reserve Bank cuts the official cash rate. Market pricing predicts a reduction is likely, although economists are more circumspect in their forecasts, with the NZ Institute of Economic Research’s shadow board today saying it was divided on the central bank should ease this week. 

“The markets are biding a bit of time as we wait for the Reserve Bank and the financial reporting season when we’ll start to see some of those results coming through,” said Grant Williamson, a director at Hamilton Hindin Greene.