Generate investment specialist Greg Smith said the market had reacted positively after yesterday’s update on the Official Cash Rate (OCR).
“We’re higher again today and I think the relief continues to sit around the somewhat dovish positioning of the new Reserve Bank Governor,” Smith said.
“Some forecasters and several banks maybe got a bit ahead in the market generally in terms of pricing and rate hikes here so it looks like the one before the election’s off the table. Who said central banks didn’t have a political awareness?”
Shares in Auckland Airport lifted 16c or 1.87% to $8.73 after 1.2 million shares, worth $11.1m, changed hands.
The airport reported higher profits and revenue, with domestic and international passengers both up 2% and revenue up 4% to $519.6m.
“Retail was down a bit, and though obviously disappointing, [it] reflects that consumers are still being pretty discerning.
“They’re probably right to be optimistic as the weak New Zealand dollar will be helping there, as well as capacity returning.”
Meanwhile, SkyCity reported its half-year revenue declined by 3%, suspending dividends once again to investors.
Smith said it was a rather ugly day for the company, noting that its share price is down 40% over the last 12 months, and down 70% over a five-year period.
“The carded play is obviously a big factor, but also the economy and immigration as well.
“I suppose on the positive side they have the convention centre, but they’ll be hoping more than most for a bit of an economic revival.”
SkyCity’s share price fell 3.45% or 3c to 84c after 616,803 shares worth $518,934.65 were traded.
Other companies that reported today included Vital Healthcare, while Scales Corporation upgraded its earnings guidance.
Vital‘s share price was flat on close at $1.95 after 2.4 million shares worth $4.7m were traded.
Smith said it was a strong result for Vital, particularly its level of occupancy, which now sits at 99%.
Scales Corporation‘s share price rallied on the company’s upgrade to its earnings guidance for its 2025 calendar year result, due on February 25.
Scales now expects to report an underlying net profit of between $61m and $62m, up from $54m-$59m.
Its share price lifted 3.39% or 20c to $6.10 after $1.6m worth of shares were traded.
International news
Global stock markets rose in the US on Wednesday as traders assessed company earnings and economic data, while oil prices surged more than 4% on a toughening US posture towards Iran.
All three major US indices advanced, with the broad-based S&P 500 gaining 0.6%.
However, the indices retreated a little from session highs after the release of Federal Reserve minutes.
Several Fed officials supported leaving the door open to interest rate rises, citing concerns that inflation could remain stubbornly high, lifting the US dollar.
Meanwhile, White House spokeswoman Karoline Leavitt warned that Iran would be “wise” to do a deal with the United States as President Donald Trump once again hinted at military action.
– Additional reporting AFP
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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