NZ Sharemarket Rattled By Gentrack, Down 0.4%

Gentrack rattled the New Zealand market yesterday when its share price was slashed by a third to a near-seven-year low following an earnings downgrade.   Following a weak day on Wall Street, the S&P/NZX 50 Index fell at the open and traded steadily thereafter, closing at 13,035.7, down 61.98 points or 0.47%. There were 70 gainers and 71 decliners on the main board, with turnover reaching 51 million shares worth $148.9m.

It was a dramatic day for leading tech stock Gentrack. The utilities software firm slumped $2.09 or 34.66% to $3.94 after sharply lowering its operating earnings guidance. Gentrack reached a peak of $14.05 in November 2024. Gentrack Gentrack, which is making a $20m share buy-back, said it now expects half-year operating earnings (ebitda) of $7.8m and full-year ebitda of $13.5m-$20m – well below the market's expectations of $15.9m and $34m, respectively. Half-year revenue is expected to be $110m, below the market expectation of $123m, and the full-year between $229m and $238m, with recurring revenue growing 10% to around $174m. Non-recurring revenue would be lower than in the previous year. “With strong recurring revenue growth, we expect margins to improve to our medium-term target of 15% to 20% ebitda margin,” Gentrack said. “We stand by our medium-term revenue target of more than 15% compound annual growth rate. We have taken the strategic decision to prioritise growth and global leadership over short-term ebitda.”

The market was also led lower by the transport and logistics companies Mainfreight, which declined $2.10 or 3.41% to $59.40, and Freightways, which shed 30c or 2.25% to $13.05, after Amazon said it was opening up its supply chain to all shippers.

Across the Tasman, the Reserve Bank, as expected, increased its cash rate by 25 basis points to 4.35%, saying inflation is likely to remain above target for some time. Higher fuel prices are adding to inflation, and there are indications that this is likely to have second-round effects on prices for goods and services more broadly, the bank said.   The S&P/ASX 200 Index was down 0.24% to 8,678.3 points at 6pm NZ time.

At home, Fisher and Paykel Healthcare was down 30c to $36.50; Ryman Healthcare decreased 5c or 2.25% to $2.17; Oceania Healthcare declined 1.5c or 2.01% to 73c; and Vulcan Steel shed 21c or 3.13% to $6.15. Another transport stock, Move Logistics, fell 1.5c or 6.38% to 22c, and Blackpearl Group declined 2.5c or 3.14% to 77c. Contact Energy, which presented at the Macquarie conference, was up 9c to $9.79; a2 Milk gained 9c to $8.14; Ebos Group increased 38c or 1.77% to $21.80; Tourism Holdings rebounded 9c of 4.48% to $2.10; Vista Group improved 4.5c or 2.37% to $1.94; and ikeGPS rose 7.5c or 6.2% to $1.28.

Meridian Energy, unchanged at $5.80, becomes the only NZ company included in the S&P’s Dow Jones Best-in-Class World Index – a global measure of corporate sustainability performance and ranking in the top 10% of utilities worldwide.

Westpac decreased $1.76 or 3.72% to $45.50 after reporting a “slightly disappointing” 5% increase in half-year revenue to A$11.29 billion (NZ$13.7b) and net profit of A$3.4b, up 3% on the first half of the 2025 financial year and down 5% on the second half. The trans-Tasman Banking Group said balance sheet momentum was solid, with both lending and deposit growth of 7% over the year. ANZ was down 41c to $43.90 after the NZ High Court ruled in 2015 and 2016 that some of its lending breached the Credit Contracts and Consumer Finance Act and that customers should be paid all the interest on their loans. ANZ estimated it could cost as much as $125m, depending on how the judgment is applied to the 17,000-odd people captured by the class action.

Transport and logistics software firm Trade Window, up 1c or 5.26% to 20c, reported a 20% rise in revenue to $9.6m for the year ending March, with annual recurring revenue increasing 17% to $10.1m compared with the previous year.

Source: Business Desk

Ahead of the local open SPI futures were 20 points lower at 8635.

- close [Morningstar with AAP]: Australia's share market has pared back some early losses after falling to its lowest level in a month, with a Reserve Bank rate hike and the ongoing Persian Gulf conflict gutting investor confidence.

The S&P/ASX200 fell 16.6 points on Tuesday, down 0.19 per cent, to 8,680.5, as the broader All Ordinaries lost 20.5 points, or 0.23 per cent, to 8,903.3.

Stubborn inflation, further pressured by the Middle East energy crisis, prompted the RBA board to hike the cash rate to 4.35 per cent, unwinding all of 2025's cuts in just three meetings and weighing on equities.

"The Reserve Bank of Australia delivered a hawkish signal with an 8-1 vote for a third consecutive hike, reinforcing that policy remains firmly in tightening mode with no pause in sight," Vanguard senior market analyst Hebe Chen told AAP.

"Higher bond yields, a firmer Australian dollar and increased pricing for further hikes are tightening financial conditions and weighing on equities."

Energy stocks outperformed, up 0.9 per cent, as Brent oil topped $US114 a barrel, helping boost Woodside shares 1.9 per cent to $32.71, as refinery operators Ampol and Viva also improved.

Coal miners were mixed, while uranium stocks sold off.

Seven of 11 local sectors actually ended the session higher, but modest slumps in the heavyweight financials and basic materials sectors dragged on the bourse.

Three of the big four banks traded lower, led by a 2.3 per cent drop in Westpac to $37.63, while CommBank broke the mould with a 0.4 per cent advance to $172.86.

Westpac's slip came as it joined ANZ and NAB in delivering modest interim earnings growth and cautious strategic updates in uncertain times for the global economy, said Jackie Neumann, Sharesies' head of capital markets.

"Citing sticky inflation, energy supply chain disruptions, and geopolitical instability in the Middle East, banks such as NAB and Westpac have actively bolstered their defences," Ms Neumann said.

"Both institutions have fortified their balance sheets by topping up collective provisions and applying specific overlays for energy-intensive sectors, preparing for a potentially bumpier economic cycle."

Materials stocks dipped 0.6 per cent, as BHP, Lynas and Northern Star came under pressure.

Gold miners were mixed, with the precious metal trading at $US4,544 ($A6,358) an ounce.

Consumer discretionaries fell 0.4 per cent, tracking with retreats for Wesfarmers JB Hi-Fi and Eagers Automotive, with the confirmation of the RBA rate hike weighing on already waning consumer confidence.

The ASX-listed tech sector advanced despite shaky investor confidence, led by a more than five per cent charge in WiseTech as it outlined its growth strategy at the Macquarie Australia Conference.

In company news, Flight Centre shares soared 4.2 per cent higher to $10.59, after it maintained its 2026 earnings guidance despite headwinds from the Persian Gulf energy crisis.

Magellan Financial tumbled almost seven per cent after handballing the responsibility for its $5.3 billion Global Equities funds to strategic partner Vinva Investment Management.

The Australian dollar is buying 71.44 US cents, falling from 71.97 US cents on Monday at 5pm. The Aussie slipped on the escalating conflict between the US and Iran, which weighed on risk sentiment.

ON THE ASX:

The S&P/ASX200 fell 16.6 points, or 0.19 per cent, to 8,680.5

The broader All Ordinaries fell 20.5 points, or 0.23 per cent, to 8,903.3

The NZX 50 added 89.0 points (0.68%) to 13124.7

Companies Holding Annual General Meeting (ASX 300):

DPM Metals Inc.

Rio Tinto Limited

[Morningstar with Dow Jones]:

U.S. stocks ended higher. The DJIA lifted 0.7% to 49,298.25, the S&P 500 gained 0.8% to 7,259.22 and the Nasdaq lifted 1% to 25,326.13.

Among S&P 500 companies, the top three gainers were Waters Corp WAT surging 13.50%, Intel Corp INTC jumped 12.94%, and SanDisk Corp SNDK lifted 12.02%.

The biggest decliners were Huntington Ingalls Industries Inc HII which dropped 10.25%, Pool Corp POOL fell 8.01%, and Aptiv PLC APTV lost 7.90%.

Asia

Chinese shares closed higher. The benchmark Shanghai Composite Index lifted 0.1% to 4,112.16 and the Shenzhen Composite Index added 0.1% to 2,776.23.

Hong Kong shares ended lower. The benchmark Hang Seng Index dropped 0.8% to 25,898.61.

Japanese shares ended higher. The Nikkei Stock Average added 0.4% to 59,513.12.

India shares ended lower. The BSE SENSEX fell 0.3% to 77,017.79.

Europe

Stocks in the U.K. finished lower. The FTSE 100 Index dropped 1.4% to 10,219.11. In Europe, shares closed higher. The Germany's DAX added 1.7% to 24,401.70, and the France's CAC 40 gained 1.1% to 8,062.31