The New Zealand stock market has undergone a decline in trading subsequent to the recent dissemination of the US May non-farm payroll data, which harbours the potential to exert influence on imminent rate cuts. The S&P/NZX 50 Index experienced a dip of 0.58%, amounting to 68.99 points, culminating in a close at 11,787.57.
The US non-farm payroll data, unveiled this past Friday, divulged that the nation had added an excess of jobs in May than was initially anticipated. This revelation has cast a shadow on expectations of forthcoming rate cuts from the US Federal Reserve, as per a report by Reuters.
In response to the circumstance, the regional head of research for the Asia Pacific at ING, Rob Carnell, remarked, “It’s going to be very difficult for the Fed to continue predicting three rate cuts this year.” He further expressed, “Quite a few of the Fed speakers are talking about the possibility of just one (cut). While the most likely outcome is we’ll see the three move to two, it is possible we just get a move to one.”
On the domestic front, Stats NZ disclosed that filled jobs in New Zealand escalated by 0.3% in the March quarter, adjusted for seasonal factors, in contrast to the filled jobs in December 2023. This resulted in the total number of filled jobs reaching 2.3 million. Furthermore, total gross earnings surged by 8.6% to NZ$174 billion in the March quarter from NZ$160 billion in the March 2023 quarter.
In corporate developments, Being AI BAI demonstrated a significant initiative by procuring a 50% equity stake in Melbourne-based technology company TymeStack for AU$1.5 million in cash and services. This investment forms part of BAI’s strategy to broaden its artificial intelligence portfolio. However, the company’s shares concluded trading down by 4%.
Fruit grower and produce packer Seeka SEK packed 43.0 million trays of class 1 kiwifruit during the 2024 harvest season, marking a 44% upsurge from the 29.8 million trays packed in the previous year. This substantial improvement ensued after two years of underwhelming harvests. Seeka is anticipated to unveil its fiscal year guidance later in the year.
The stock market’s response to the US jobs report and the strategic business maneuvers of entities such as Being AI illustrates the dynamic nature of global and domestic economic tendencies. It will be compelling to observe the continuation of these developments in the subsequent months.