New Zealand market falls slightly as employment confidence hits new low

New Zealand’s benchmark share index plunged into the red as New Zealand’s job confidence hit its lowest level since December 2020.

The S&P/NZX 50 index fell 26.01 points (0.2%);
11,316.81. Revenue was just $101.3 million, and there were 35 advancers and 90 decliners on the main board.

Greg Smith, head of retail at Devon Funds, said “the skies and the market boards” were quiet during the school holidays.

New Zealand employment confidence reached its lowest level since December 2020 in September 2023, with more people expressing pessimism than optimism, according to the Westpac McDermott Miller Employment Confidence Index. .

The index surveyed 1,551 respondents from September 1 to 13 and measures various aspects of the labor market, including perceptions of employability. While a score above 100 indicates optimism outweighs pessimism, the score for the September quarter was 98.3, down 7.4 points from June.

This is the first time since March 2021 that respondents have an overall negative view of the labor market.

Westpac senior economist Darren Gibbs said the decline reflected workers’ growing awareness that securing employment was becoming increasingly difficult.

Smith said the data shows consumers are starting to “price in” the bleak economic outlook.

Warehouse Group will report its full-year results tomorrow, and Hallenstein Glasson Holdings will report on Friday. Mr Smith said it would be interesting to see how the retailer’s outlook “aligns” with the survey.

Warehouse does not provide full-year sales or earnings guidance, but Hallenstein told the market at the end of August that group sales for the 12 months to August 1 were $409.7 million, compared to a year earlier. This was an increase of 16.7% from $351.2 million in the same period. Group sales.

Group net profit after tax is expected to be in the range of $31.8 million to $32.3 million, an increase of approximately 25.2% compared to the previous year ($25.6 million).

On Wednesday, Warehouse Group rose 1 cent, or 0.6%, to $1.75, while Hallenstein Glassons fell 5 cents, or 0.9%, to $5.75.

In a market update on Wednesday, fleet company E-Load announced that “approximately $50 million in gross proceeds” had been raised through the company’s equity raise.

Chairman Susan Patterson said the $50 million would help the company’s capital structure as it continues to add “innovative capabilities” for customers and launches decarbonization tools.

Shares fell 3 cents, or 4.3%, to 67 cents.

Geneva Finance informed the market this morning that the Reserve Bank of New Zealand (RBNZ) has launched an investigation into the Geneva-owned insurance company.

The investigation concerns possible breaches of the Insurance (Prudential Supervision) Act, primarily related to the insurer’s failure to establish statutory funds as required and maintain minimum solvency margins required by insurance license conditions. are doing.

Quest Insurance Group, a subsidiary of Geneva Finance, maintains it had sufficient funds to meet its obligations. These concerns relate to conduct in 2021 and 2022, and Quest self-reported the issues.

According to Geneva’s annual report for the year ended March 31, Quest’s pre-tax profit was $4.4 million, down 6% from the prior period.

This decline was due to an increase in insurance claims, particularly from the Auckland floods and, to a lesser extent, Cyclone Gabriel. Geneva Finance shares were flat at 40.5 cents per share by the evening.

Shares of real estate investment company Argosy Properties were also flat at $1.10. Today, the company announced to the market that it has entered into lease transactions for additional green certified space within its portfolio.

“It’s clear that as the market changes, occupiers are becoming increasingly committed to green buildings,” said CEO Peter Mens.

This includes entering into a 12-year conditional lease agreement with Mr Niwa for approximately 2,650 square meters of ground floor and level 1 at 82 Wyndham Street, Auckland.

The lease begins Jan. 1 and includes 80 parking spaces, the company said.

“We are very pleased to keep Niwa in our portfolio. Market demand for green buildings remains strong,” said Mens. Property developer Mansons TCLM has exercised its option to extend the settlement date on its purchase of a large Auckland office building, formerly the Auckland Council Service Center at 35 Graham Street, from listed landlord Asset Plus. did.

The original sale price was $65 million + GST, with potential redevelopment planned. Mansons’ decision to extend the settlement date by 12 months to November 29, 2024 increases the purchase price to $68 million and increases the deposit requirement to 20% of the new price.

Asset Plus rose 1 cent, or 4.2%, to 25 cents.

Goodman Property rose 1 cent or 0.5 per cent to $2.11, Precinct Property fell 3 cents or 2.6 per cent to $1.14 and Kiwi Property fell 0.5 cent or 0.6 per cent to 84.5 cents.

Investor Properties fell 2 cents, or 1.6%, to $1.27, and Industrial Real Estate also fell 1 cent, or 0.4%, to $2.25.

The New Zealand dollar was trading at US$59.44 at 3pm in Wellington, down from US$59.65 on Tuesday. The trade-weighted index stood at 70.57, up from 70.67 on Tuesday.