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Ricky Wilson / Stuff
Stock market investors seek better direction in an uncertain environment.
The New Zealand equity market was down in mixed trading as investors were left in their hands amid uncertainty surrounding Brexit, the launch of any Covid-19 vaccine, and a stimulus package in the United States.
The benchmark NZX 50 index fell 0.23 percent, or 29.03 points, to 12,860.37 on Thursday, after closing at a record 12,889.40 on Wednesday.
The UK and the EU have agreed on a Sunday deadline for a Brexit deal, or there will be no deal, and “very large gaps” are said to remain. Meanwhile, in the United States, Congress remains divided on the size and scope of any new stimulus package.
“The market is really going to wait and see what happens with Brexit over the weekend, it might keep the markets quiet a bit, and you still have the background of what’s going on in the US bouncing off the bottom as well,” Greg said Main, director of Jarden.
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“Some of those big picture things will still be hanging in the market in the short term,” he said. “It looks like our market is starting to look like it could trade a bit sideways until the end of the year and look for a better direction.”
Michael Hill International jumped 11 percent to 63 cents after the jewelry chain said same-store sales rose 7.9 percent to A $ 220.9 million (NZ $ 233.9 million). in the 22 weeks to Nov. 29, while online sales increased 110 percent. The company’s profit margin expanded by around 200 basis points.
Francisco Seco / AP
Britain and the European Union have said a Brexit deal must be reached before Sunday.
Despite temporary store closures and lower foot traffic during the key Christmas trading period, Michael Hill expects his first half pre-tax profit to substantially exceed A $ 31.6 million last year.
Main said Michael Hill was a “post-Covid recovery story” that boded well before Christmas.
Infrastructure investor Infratil fell 1 percent to $ 7.18. The stock closed at a record $ 7.25 on Wednesday after the company rejected a $ 5.4 billion takeover offer from Australia’s largest retirement fund, sparking speculation that it could make a higher offer.
Main said some investors may have sold the shares for a profit.
Supplied
Radius, which is listed on the NZX, has plans for future expansion.
Radius Residential Care, a provider of care for the elderly, debuted with buyers who wanted the stock willing to pay up to $ 1.49, but not sellers. The value of the company’s shares was set at 80 cents each by Radius’s board, giving the company a value of $ 141.2 million.
While the company is listed on the NZX, it is not issuing shares to raise capital at this stage, although managing director and CEO Brian Cree has said that is the intention going forward for the development of retirement village units. .
Similarly, Auckland Real Estate Trust, which traded on Wednesday with foreign exemption status, closed at 79c with no transactions.
– With AP
