Fleet management company Eroad's shares rose 13% on New Zealand’s index today as the US Federal Reserve outlined its stance to take on inflation no matter what.

Jarden wealth management director Greg Main said the market would continue to watch economic data but the upcoming US reporting season and Fed meeting at the end of July could mean markets trade “sideways” until then.

The S&P/NZX 50 Index fell 28.9 points or 0.26%, to 11,112.16. Turnover was $115.6 million.

Eroad shares were up, a happy day for the fleet company’s investors as its shares have struggled drastically in the NZ market over the past couple of weeks – falling as low as $1.44. 

However, the firm has gained back some of the ground it’s lost and added 24 cents to its share price today where it ended the day up 13% to $2.08.

Main said Eroad was continuing its “recent recovery” and rising strongly after being heavily sold down.

Latest NZX data (market currently closed)

Wed, 10 Aug 2022 05:00 pm
-1.39 (-0.01%)
TOP GAINERS (valued at above 10c)
Move Logistics $0.080 6.72 %
Third Age Health $0.150 6.38 %
My Food Bag $0.040 5.13 %
Greenfern Industries Ltd $0.006 3.68 %
NZX $0.040 3.31 %
TOP DECLINERS (valued at above 10c)
Chatham Rock Phosphate $-0.030 -8.57 %
a2 Milk Company $-0.420 -7.46 %
Cannasouth $-0.020 -4.88 %
Smartpay Holdings Limtied $-0.035 -4.67 %
Millennium & Copthorne Hotels New Zealand $-0.100 -4.37 %

Devon Funds’ head of retail Greg Smith said in his monthly investor report today that everywhere people looked at the moment, messages appeared to be all about economic “doom and gloom”.

“The prices of food, petrol and many other essential goods continue to rise, putting pressure on consumer wallets,” he said.

“Unemployment is at record lows, exporters are doing well, and borders are opening up, but economically, things are only getting tougher it seems.”

Smith said house prices were falling all over the country, with further salt being rubbed in the wounds by rising mortgage rates.

“The message is that it’s time to batten down the hatches – apart from the government, which has continued a massive spending splurge.”

Main said AFT Pharmaceuticals rose today on the news that its direct Chinese e-commerce shop has expanded to include over-the-counter pharmaceuticals after receiving regulatory approval.

The multinational pharmaceutical company’s shares shot up 19 cents at $3.74 at 1pm this afternoon on the NZX and ended the day up 8.5% to $3.85.

Pushpay also announced that it had won over the Seattle archdiocese as a new customer as it continues its quest to gain more catholic customers.

Bringing on the Archdiocese of Seattle will give Pushpay the opportunity to reach 174 parishes and a catholic population of more than 600,000 people.

The church management software’s shares were flat at $1.28  per share at the end of the day.

Retirement village operator Ryman Healthcare was down 0.9% to $8.82 but Radius Residential Care was up 5.7% to 37 cents.

Medicinal cannabis stocks Cannasouth and Greenfern Industries were also up 2.7% to 38 cents and 0.5% to 19.3 cents. Cannasouth and Greenfern have consistently been on the rise over the past couple of weeks.

Utility pole management company IkeGPS was down 4.3% to 67 cents.

On the currency front, the NZ dollar was trading at 61.60 US cents at 3pm in Wellington, down from 62.24 cents yesterday. The trade-weighted index was at 70.27, from 70.45 yesterday.

Kiwibank economists said a note this morning that the Fed’s open market committee minutes, which had been released overnight, showed how committed the Fed was in its fight against inflation – at the cost of bringing in an even more restrictive policy.

“They were also concerned that the public had lost faith in the Fed’s ability to control the situation, which was part of their decision making in delivering an out-sized rate hike,” the economists said.