Market Announcements
Market Summary
The New Zealand sharemarket continued its strong momentum, while the sudden resignation of Hallenstein Glasson's well-performing chief executive added some intrigue. The S&P/NZX 50 Index traded solidly all day and closed at 13,133.16, up 62.71 points or 0.48%. There were 80 gainers and 58 decliners on the main board with 38.2 million shares worth $115.9m changing hands. The index has recorded four successive months of gains since May – the longest monthly winning streak for four years when the market began recovering from the covid pandemic in 2021.
Retailer Hallenstein Glasson was up 4c to $8.75 after announcing the resignation of group CEO Chris Kinraid, who leaves on Friday. Hallenstein said Kinraid was instrumental in delivering strong revenue growth and earnings during a challenging economic environment. As a result, he is leaving the group in a very strong position. Hallenstein’s share price is at an all-time high.
The market was led by the heavy hitters Infratil, increasing 40c or 3.48% to $11.89, and Mainfreight, up $1.40 or 2.26% to $63.25. Mercury Energy gained 9c to $6.72. Mainfreight has won a freight contract with Ikea when the retail store opens in Auckland by the end of the year. Port of Tauranga gained another 17c or 2.35% to $7.40 on the back of a pledge that the Government will be sorting out an issue that caused its fast-tracked wharf expansion plan to be halted by a judicial review.
NZME gained 2c or 1.79% to $1.14 after a disclosure that directors Steven Joyce and Jim Grenon had bought additional shares in the publisher and broadcaster.
The property sector is showing signs of revival, with Goodman Trust increasing 5.5c or 2.69% to $2.10; Precinct Properties up 2.5c or 1.96% to $1.30; and Vital Healthcare Trust gaining 3.3c to $2.07. Property developer Winton Land was up 9c or 4.27% to $2.20. Fletcher Building gained 8c or 2.52% to $3.26; Oceania Healthcare increased 3c or 4.76% to 66c; and Delegat Group continued to rebound, up 8c or 1.89% to $4.31.
Amongst the decliners, Ebos Group was down 28c to $33; a2 Milk shed 20c or 1.87% to $10.48; Freightways decreased 25c or 2.02% to $12.12; and Chorus eased 12c to $9.65.
Santana Minerals, up 1.5c or 2.07% to 74c, said an updated economic impact statement confirmed the Bendigo-Ophir Gold Project would deliver $5.8 billion gross domestic product to the Central Otago region ($360m a year using a gold price of NZ$5,410 an ounce). The project would also create 854 jobs directly and indirectly, including 357 fulltime-equivalent positions, and contribute nearly $2b in government revenue (royalties, tax and ACC) over the projected mine’s life.
Third Age Health Services, unchanged at $4.40, told the market that current board chair John Fernandes will become the executive chairman following the departure of CEO Tony Wai in October.
Being AI was also unchanged at 5c after acknowledging the NZ Markets Disciplinary Tribunal determination of a public censure and $50,000 fine for breaching five NZX listing rules. Being failed to operate with the required minimum number of directors for a period early this year.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 37 points lower at 8841.
- close [Morningstar with AAP]: The local share market has fallen modestly as major retailers Woolworths and Wesfarmers traded ex-dividend while gold has pushed further into record territory.
The benchmark S&P/ASX200 index on Tuesday lost 27.1 points, or 0.3 per cent, to 8,900.6, while the broader All Ordinaries dropped 28.8 points, or 0.31 per cent, to 9,168.0.
Gold meanwhile was changing hands at $US3,558 an ounce, after spending most of August under $US3,500, and in morning trading it surpassed Monday's record to hit an all-time high of $US3,578.
NAB economist Rodrigo Catril told the bank's Morning Call podcast that the yellow metal was on the rise for a variety of reasons, including lower bond yields and a weaker US dollar.
"The tensions in Ukraine with Russia continue to escalate, so this idea of a ceasefire is also looking less likely," Mr Catril said.
"All of these components play into the appeal of gold."
Marc Jocum, Global X senior product and investment strategist, said there was increasing speculation that gold could test the $US4,000 level as early as next year, especially if the US Federal Reserve follows through with deeper rate cuts or if geopolitical tensions intensify.
The US market meanwhile was closed on Monday for the Labor Day holiday, and there were no major international news events driving markets overnight.
Eight of the ASX's 11 sectors finished lower on Tuesday, while technology and financials both gained 0.4 per cent and materials was flat.
Goldminers mostly had another good day, with Evolution rising 0.8 per cent and Ramelius Resources climbing 2.7 per cent, although Northern Star dipped 1.2 per cent.
Elsewhere in the mining sector, BHP and Rio Tinto both rose 0.4 per cent, to $42.85 per cent and $114.44, respectively, while Fortescue dropped 0.7 per cent to $18.40.
Three of the big four banks finished higher, with Commonwealth Bank growing 0.9 per cent to $170.46, NAB advancing 1.0 per cent to $42.96 and Westpac climbing 0.8 per cent to $38.57.
ANZ was the outlier, dipping 0.3 per cent to $33.48.
Collins Foods climbed 7.0 per cent to a year and a half high of $10.26 after the KFC operator announced accelerating sales growth for the first 18 weeks of 2025/26.
"Our stronger performance reflects our enhanced focus on the customer experience," said chief executive Xavier Simonet.
Woolworths dropped 3.1 per cent to $27.85, Wesfarmers retreated 2.9 per cent to $88.25 and Santos fell 1.4 per cent to $7.89 as all three stocks traded ex-dividend.
DUG Technology soared 25.3 per cent to an 11-month high of $1.98 after the seismic data platform announced a contract signing with a subsidiary of Malaysia's national energy company.
Polynovo grew 10.3 per cent to a three-month high of $1.45 after the wound care company detailed how it stood to benefit from proposed changes to US Medicare reimbursement rates.
The Australian dollar was trading for 65.39 US cents, from 65.41 US cents at 5pm on Monday.
Steven Dooley, head of market insights with cross-border payments platform Convera, said that the Aussie was in a clear uptrend, with key moving averages pointing higher.
If second-quarter gross domestic product figures, set to be released on Wednesday, come in higher than expected there was potential for the Aussie to push towards its 10-month high of 66 US cents, Mr Dooley said.
But weaker annual growth than the 1.6 per cent figure that economists are forecasting would likely push the Aussie lower while almost guaranteeing a Reserve Bank rate cut in November, he added.
ON THE ASX:
The S&P/ASX200 dropped 27.1 points on Tuesday, or 0.3 per cent, to 8,900.6
The broader All Ordinaries fell 28.8 points, or 0.31 per cent, to 9,168.0
The NZX 50 Lost -23.33 points (-0.18%) to 13109.83
Companies commencing Ex-Dividend Trading Today (ASX 300):
Australian Ethical Investment Limited
Downer EDI Limited
Evolution Mining Limited
Humm Group Limited
Monadelphous Group Limited
Netwealth Group Limited
Newmont Corporation
Origin Energy Limited
Peter Warren Automotive Holdings Limited
Pro Medicus Limited
Qualitas Real Estate Income Fund
Ramsay Health Care Limited
SEEK Limited
Sonic Healthcare Limited
Steadfast Group Limited
Whitehaven Coal Limited
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended lower. The DJIA fell 0.5% to 45,295.81, the S&P 500 dropped 0.7% to 6,415.54 and the Nasdaq slipped 0.8% to 21,279.63.
Among S&P 500 companies, the top three gainers were Ulta Beauty Inc ULTA surging 8.08%, Biogen Inc BIIB jumped 5.60%, and Ralph Lauren Corp RL lifted 4.75%.
The biggest decliners were The Kraft Heinz Co KHC which dropped 6.83%, Constellation Brands Inc STZ fell 6.38%, and Albemarle Corp ALB lost 6.24%.
Asia
Chinese shares closed lower. The benchmark Shanghai Composite Index dropped 0.4% to 3,858.13 and the Shenzhen Composite Index slipped 2% to 2,414.46.
Hong Kong shares ended lower. The benchmark Hang Seng Index fell 0.5% to 25,496.55.
Japanese shares ended higher. The Nikkei Stock Average lifted 0.3% to 42,310.49.
India shares ended lower. The BSE SENSEX slipped 0.3% to 80,157.88.
Europe
Stocks in the U.K. finished lower. The FTSE 100 Index declined 0.9% to 9,116.69. In Europe, shares closed lower. The Germany's DAX dropped 2.3% to 23,487.33, and the France's CAC 40 declined 0.7% to 7,654.25
