New Zealand's share market is experiencing growth or an upward trend, while Australia's share market has suffered a significant decline
The New Zealand sharemarket rose while the Australian sharemarket fell after the Reserve Bank of Australia (RBA) announced an increase in interest rates, contrary to market expectations. The S&P/NZX 50 Index closed up 34.84 points or 0.29% at 12,037.81, with 62 gainers and 69 decliners over the whole market, while the S&P/ASX 200 Index fell 0.86% to 7271.2 points.
RBA governor Philip Lowe justified the increase in interest rates by stating that while inflation in Australia has passed its peak, at 7%, it is still too high and will take time to return to the target range of 2-3%.
Comvita, which is experiencing solid demand and gaining market share for its mānuka honey, propolis and olive-leaf extract products, rose 18c or 6.38% to $3 after announcing that it is expecting a record fourth quarter to deliver the full-year guidance of double-digit growth in operating earnings (Ebitda).
Smartpay Holdings, a provider of Eftpos services, reached a 20-year high, increasing by 3.66% or 6 cents to $1.70, exceeding its previous peak of $1.60 on March 1, 2003.
Embark Education saw a rise of 8.2% or 5 cents to 66 cents, following its announcement of increased occupancy at its early childcare centres and a 21% growth in Australian revenue to A$13.9m (NZ$14.9m) in the first quarter compared to the same period in the previous year.
Other gainers in the stock market were Michael Hill, NZ Automotive Investments, Rakon, and Marlin Global. Manawa Energy gained 5 cents, reaching $4.95 after securing the rights to develop the Project Horikawa 230MW windfarm in central North Island, which could produce enough energy to power 100,000 average NZ homes.
Meanwhile, Auckland International Airport saw a decline of 7 cents to $8.75 and announced plans to offer bonds that mature in November 2028. Meridian Energy, Ebos Group, Seeka, and CDL Investments also experienced a drop in their stock prices. Other decliners included Eroad, NZME, and Just Life. Chatham Rock Phosphate provided samples of Queensland Korella Mine phosphate to fertiliser manufacturers in New Zealand, Australia, Canada, and Europe.
AoFrio, a software firm, announced its full-year guidance, expecting revenue to rise by over 30% to near $100m and operating earnings (Ebitda) to reach $3.5m, despite a drop in revenue in the first quarter compared to the same period last year, resulting in an Ebitda loss of $400,000.
