Market Announcements
Market Summary
The New Zealand sharemarket rallied strongly for the second day in a row yesterday as the positive glow from the Reserve Bank’s Official Cash Rate hold continued to bolster investors. But there was a mixed reaction to financial results, with Auckland International Airport getting a thumbs up while shares in SkyCity Entertainment slumped after it missed analyst expectations. after 41.1 million shares, worth $153.8m, were traded. The S&P/NZX 20 index was up 1.57%, closing at 7,656.41 points, while the S&P/NZX 10 index ended the day at 12,963.15 after rising 1.66%. There were 101 gainers on the main board and 27 decliners.
Shares in Auckland Airport lifted 16c or 1.87% to $8.73 after 1.2m shares changed hands worth $11.1m. The airport reported higher profits and revenue, with domestic and international passengers both up 2% and revenue up 4% to $519.6m. “Retail was down a bit, and, though obviously disappointing, reflects that consumers are still being pretty discerning. “They’re probably right to be optimistic as the weak New Zealand dollar will be helping there, as well as capacity returning.”
SkyCity, meanwhile, reported that its half-year revenue declined by 3%, suspending dividends for investors once again. SkyCity’s share price fell 3.45% or 3c to 84c after 616,803 shares worth $518,934.65 were traded.
Other companies that reported yesterday included Vital Healthcare, while Scales Corporation upgraded its earnings guidance. Vital’s share price was flat on close at $1.95 as 2.4m shares worth $4.7m were traded.
Scales Corporation’s share price rallied on the company’s upgrade to its earnings guidance for its calendar 2025-year result due on Feb 25. Scales now expects to report an underlying net profit of between $61m and $62m, up from $54m-$59m. Its share price lifted 3.39%, or 20c, to $6.10 after $1.6m in shares were traded.
Global stock markets rose in the US on Wednesday as traders assessed corporate earnings and economic data, while oil prices surged more than 4% amid a tougher US posture toward Iran. All three major US indices advanced, with the broad-based S&P 500 winning 0.6%. But the indices retreated slightly from session highs after the release of the Federal Reserve minutes. Several Fed officials supported leaving the door open to interest rate hikes, citing concerns that inflation could remain stubbornly high and that the dollar could appreciate. Meanwhile, White House spokeswoman Karoline Leavitt warned that Iran would be “wise” to do a deal with the United States as President Donald Trump once again hinted at military action.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 44 points lower at 9003.
- close [Morningstar with AAP]: Australia's share market has spiked to a new high as commodity price strength buoyed miners and energy stocks, while banks continue higher on the back of promising earnings.
The S&P/ASX200 hit a new intraday record of 9,118.3 on Thursday, before ending the session 79.2 points higher, up 0.88 per cent, to 9,086.2.
The broader All Ordinaries gained 77.9 points, or 0.84 per cent, to 9,316.6, but only came within 74 points of its highest-ever value, as earnings season continues to favour the large caps.
Despite some very red patches on the market map, Thursday's market impulse was positive overall, Moomoo market strategist Michael McCarthy said.
"We're seeing very good support for metals and mining, and there does seem to be a dawning realisation that supply is constrained across the commodity space and demand has been underestimated," Mr McCarthy told AAP.
"And, that ongoing growth in demand for energy in particular, but also industrial metals and concerns that have seen investors fly into precious metals, means commodities could be the area of focus for at least the first half of this year."
Seven of 11 local sectors ended the day higher, while real estate trusts and consumer discretionary stocks sold off, the latter led by a 5.6 per cent slump in Wesfarmers after its sales growth failed to impress.
The heavyweight financials sector advanced 1.4 per cent, as three of the big four banks notched gains above two per cent, while CommBank grew a modest 0.7 per cent to $178.19 after spiking to six-month highs during the session.
Elsewhere in the segment, Medibank Private underperformed, tumbling 5.6 per cent to $4.52 after its half-year profit slumped 11 per cent to $302.9 million.
Buy-now, pay-later provider and former market darling Zip Co had roughly a third of its market value wiped, after bad debts and margin pressures in the first half dragged its revenues below consensus estimates.
In basic materials, large caps and gold miners were strong, with BHP and Fortescue edging higher, while Rio Tinto jumped two per cent ahead of its after-market full-year results release, which boasted a $10 billion net profit.
Energy outperformed the broader market with a 3.8 per cent charge, with Woodside and Santos each up more than four per cent as oil prices spiked overnight on tensions between the US and Iran, and failed peace talks between Russia and Ukraine.
Coal miners were broadly higher, except Whitehaven, which tumbled almost five per cent to $8.03 after lower coal prices contributed to a $19 million loss in the first half.
Uranium stocks caught bids, with Paladin and Deep Yellow each up more than five per cent.
A post-earnings rally in Telstra shares helped lift the communications sector more than two per cent, after Australia's most widely held company beat expectations with a $1.1 billion net profit in the six months to December.
Real estate trusts suffered the broadest losses, the segment giving up 2.5 per cent of its value despite decent earnings updates from Goodman Group and Charter Hall.
The Australian dollar is buying 70.54 US cents, down from 70.69 US cents on Wednesday at 5pm, despite lower-than-expected January unemployment figures increasing the odds of a Reserve Bank interest rate hike in March.
Rates markets put the chances of a March hike at roughly one in six, while there is a 74 per cent likelihood of a hike by May, and two more increases priced-in by the end of 2026.
ON THE ASX:
The S&P/ASX200 rose 79.2 points, or 0.88 per cent, to 9,086.2
The broader All Ordinaries gained 77.9 points, or 0.84 per cent, to 9,316.6
The NZX 50 Lost -87.08 points (-0.65%) to 13357.12
Companies commencing Ex-Dividend Trading Today (ASX 300):
ASX Limited
Bendigo and Adelaide Bank Limited
BlueScope Steel Limited
GWA Group Limited
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended lower. The DJIA dropped 0.5% to 49,395.16, the S&P 500 slipped 0.3% to 6,861.89 and the Nasdaq declined 0.3% to 22,682.73.
Among S&P 500 companies, the top three gainers were Omnicom Group Inc OMC surging 15.36%, Deere & Co DE jumped 11.58%, and Texas Pacific Land Corp TPL lifted 10.40%.
The biggest decliners were EPAM Systems Inc EPAM which dropped 17.01%, Pool Corp POOL fell 14.52%, and Carvana Co CVNA lost 8.47%.
Asia
Chinese shares closed lower. The benchmark Shanghai Composite Index slipped 1.3% to 4,082.07 and the Shenzhen Composite Index fell 1.1% to 2,680.39.
Hong Kong shares ended higher. The benchmark Hang Seng Index rose 0.5% to 26,705.94.
Japanese shares ended higher. The Nikkei Stock Average added 0.6% to 57,467.83.
India shares ended lower. The BSE SENSEX declined 1.5% to 82,498.14.
Europe
Stocks in the U.K. finished lower. The FTSE 100 Index fell 0.6% to 10,627.04. In Europe, shares closed lower. The Germany's DAX declined 0.9% to 25,043.57, and the France's CAC 40 slipped 0.4% to 8,398.78
