Fonterra leads NZ sharemarket rise

The S&P/NZX 50 Index closed up 0.15% or 19.09 points, rising to 12,480.05, with 42.85 million shares changing hands to the value of $113.94 million.

The S&P/NZX 20 index closed at 7310.09, up 0.048%, while the S&P/NZX 10 index ended the day at 1863.80, a rise of 0.17%.

There were 71 gainers on the main board and 59 decliners. Middle East tensions Devon Funds Management’s Greg Smith said that as tensions in the Middle East have progressed, markets have gained a degree of poise.

“It remains to be seen how long the ceasefire will last and the White House’s claims that the war is over,” Smith said.

“Trump is still said to be applying pressure on Iranian petrodollars, so there’s a risk that’s not finished just yet.

“Just as with the trade situation, there remains some encouraging developments, but it is far from resolved.”

Fonterra lifts In the domestic market

Fonterra saw its share price rise 4.17% to $6.75, up 27c, as investors responded to positive signs regarding unit price growth.

Outside investors who are not allowed to hold shares in the Fonterra co-operative can invest in units which give them access to economic rights similar to those of a share. “Dairy prices have been strong and it showed through in recent trade figures," Smith said.

"The dairy sector has been enjoying a purple patch and that’s good news for the pay-out there, and the economy.”

Fonterra is due to announce its results in late September, with strong earnings expected.

Ebos trades

Elsewhere on the market, Ebos Group recorded $5,968,855.35 worth of shares trading hands, with its share price rising to $38.15, up 95c. Infratil also recorded a strong day, with 625,563 shares changing hands, lifting its share price 15c to $10.40.

Smith said investors will be keeping an eye on the US inflation figures set to be released in a few weeks. “[US Federal Reserve chair Jerome] Powell is worried that they don’t know whether tariffs are going to prove transitory, and I suppose the other thing we don’t know is with those final tariff amounts, where they’re going to land.

“A couple of other Fed officials who are voting said that if the inflation numbers come in and behave themselves, then they’d be in favour of a July rate cut, so there’d also be quite a bit of interest in that.” Global stocks Global stocks were mixed on Wednesday as markets weighed lingering worries about the Iran-Israel conflict, while Nvidia surged to a fresh all-time high on bullishness over artificial intelligence.

Analysts cited not only concerns that the ceasefire between Iran and Israel could break down, but leaked US intelligence that said bombing had set back Tehran’s nuclear programme by just a few months. “Maybe the US bombardment didn’t destroy the Iran nuclear programme,” said Jack Ablin, of Cresset Capital Management, adding that revelations about the programme suggested the Iran story is not a “new chapter”. The S&P 500 finished a choppy day flat, while the Dow edged lower and the Nasdaq advanced.

“Investors are sort of catching their breath, since we had a very strong move on Monday and Tuesday,” said Sam Stovall, chief investment officer at CFRA Research. “Nvidia’s on everyone's lips today.” The chip company shot up 4.3% to US$154.31, giving it a market valuation of around US$3.76 trillion – more valuable than Microsoft, Apple and other tech giants.