New Zealand Shares Rise Tracking Wall Street's Recovery, New Zealand Rural Land Says Share Price Undervalues Growth

MT Newswires Live
05 Aug

New Zealand shares ended higher on Tuesday as Wall Street recovered from its Friday sell-off due to investors expecting the Federal Reserve's potential rate cut to help the economy.

The S&P/NZX 50 Index rose 1.52% or 193 points to close at 12,877.04.

The benchmark S&P 500 gained 1.5%, while the Nasdaq Composite finished 2% higher, and the Dow Jones closed up 1.3%.

"There are signs of weakness in parts of the US economy, that plays to the view that maybe not in September, but certainly this year that the Fed's still on course to ease potentially twice," said Rodrigo Catril, senior currency strategist at National Australia Bank, as quoted by Reuters.

In domestic news, the ANZ World Commodity Price Index fell 1.8% month over month in July, according to a report from ANZ Research.

Also, the market continues to price in an 85% probability of a 25-basis-point cut to the Official Cash Rate (OCR) at New Zealand's Central Bank policy meeting later in the month, said Westpac, ahead of key labor data release this week.

In corporate news, F&C Investment Trust (NZE:FCT) reported a net asset value per ordinary share as of Aug. 1 of NZ$12.3864 excluding income and NZ$12.4267 including income on a market value basis.

New Zealand Rural Land (NZE:NZL) is undertaking a capital review to assess strategic options, saying its "strong progress" has not been reflected in its share price.

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