The S&P/NZX 50 Index declined by 0.24% to 12,467.03 on Thursday, with total market turnover reaching $133 million from 38,433,775 shares traded. Positive updates from The Warehouse Group and ANZ Bank were not enough to buoy the overall index.
Monetary Policy Overshadows Corporate Results
Investor reaction remained muted as concerns over the economic outlook and lower consumer spending persisted. The Warehouse Group and ANZ Bank posted favourable results, though these were eclipsed by the global market response to the Federal Reserve’s unchanged rate stance.
Benchmark Indices Reflect Broader Market Caution
The S&P/NZX 50 Index dipped by 29.86 points, closing at 12,467.03, as market sentiment remained subdued despite some positive earnings reports. The S&P/NZX 20 Index dropped by 0.32% to 7,386.17, while the S&P/NZX 10 Index fell by 0.82% to 1,885.13.
Trading volume was significant, with 38,433,775 shares exchanging hands, totalling $133 million. Of the stocks traded, 80 companies gained while 56 declined, reflecting investor caution amid mixed earnings reports and ongoing economic uncertainties.
Retail Sector Shows Resilience Amid Margin Pressure
Third-quarter sales at The Warehouse Group rose 2.2% to $710.5 million, while gross profit fell 2% to $223.3 million amid pressure on margins. The retailer’s market share increased to 15.8%, up 50 basis points.
Its share price climbed 1.27% to $0.80, with trading volume at 41,220 shares. Greg Smith of Devon Funds Management said, “They’ve been experiencing the pointy end of it in terms of the retail sector, and they’ve probably been clear obvious laggards, and feeling the effects of the cutback to discretionary spending.”
Noel Leeming, a subsidiary, posted a 4.5% sales gain. Briscoe Group reported a 2.58% drop in sales to $178.3 million, with shares rising 1.58% to $4.51.
ANZ Delivers Solid Profit, Market Response Remains Tepid
ANZ Bank’s New Zealand division reported a 1% increase in cash net profit to $1.161 billion for the six months ending 31 March. The statutory net profit rose by 21% to $1.277 billion, driven by $116 million in economic hedges.
ANZ shares fell by 1.85% to $31.80, with 13,091 shares traded for $417,557.62 despite the profit growth. Analysts attributed the decline to mixed market sentiment and higher deposit rates affecting profit margins.
Fed Maintains Rates as Global Outlook Remains Clouded
Interest rates remained unchanged after the U.S. Federal Reserve’s latest meeting, as Chair Jerome Powell pointed to tariff concerns and affirmed the Fed’s independence from the White House. The Dow Jones closed 0.7% higher at 41,113.97, while the S&P 500 added 0.4% and the Nasdaq rose 0.3%.
Conclusion
Positive updates from The Warehouse Group and ANZ Bank failed to offset broader declines on the New Zealand sharemarket, as investors digested mixed earnings and external pressures. The Federal Reserve’s steady interest rate stance reinforced market uncertainty.