Market Announcements
Market Summary
The New Zealand sharemarket matched its all-time high after a strong rebound in offshore artificial intelligence stocks, and SkyCity rose sharply after announcing another asset sale. The S&P/NZX 50 Index traded steadily throughout the day yesterday and closed at 13,763.18, up 107.15 points or 0.78% - equalling the record of 13,763.1 set on July 6. There were 81 gainers and 54 decliners on the main board, and turnover reached 34.2 million shares worth $128.1m.
There was further good news for the rural sector with prices bouncing back 1.5% overall in the latest Global Dairy Trade auction, following the previous 4.9% decline. Whole milk powder lifted 1.6% to an average of US$3,486 (NZ$5,987) a metric tonne, and skim milk powder was up 2.8% to $3,234/MT. The largest increase was buttermilk powder, rising 10.5% to $4,737/MT.
On Wall Street, the Dow Jones Industrial Average was up 0.74% to 52,224.64 points; S&P 500 increased 0.89% to 7,509.2; and Nasdaq Composite rose 1.29% to 25,837.21. The Philadelphia Semiconductor Index gained 5.21% to 12,356.16 points. Brent Crude oil was trading higher at US$92.26 a barrel at 5.45pm NZ time.
At home, Fisher & Paykel Healthcare gained 71c or 1.82% to $39.82 on trade worth $17.63m; Fletcher Building increased 9c or 2.41% to $3.83; a2 Milk added 11c to $8.53; and Infratil was up 23c to $15.70 on the back of the rebound in AI stocks.
SkyCity rose 7.5c or 12.82% to 66c after announcing it has a conditional agreement for the sale of The Grand Hotel in Auckland. The deal needs the consent of the Overseas Investment Office, and SkyCity is expecting settlement late this year. It’s understood the price for the hotel sale is in the vicinity of $250m, which would reduce SkyCity’s net debt of $594m by nearly half. Real estate agents are indicating there’s a strong appetite for NZ hotel assets. The casino operator is targeting $200m of asset sales by February next year, and has already sold the 99 Albert St office building and investment properties on Victoria St for $74.5m.
Mercury Energy was up 9c to $6.79 after reporting an increased trading margin of $390m for the fourth quarter – up 33% on the previous corresponding period. For the year to date, trading margin was up $269m to $1.42 billion, and generation increased 1,163GWh to 9,070GWh. The quarterly generation was up 339GWh to 2,344GWh. Mercury said all wind turbines at Kaiwera Downs stage 2 in Southland were installed, and the Kaiwaikawe wind farm in Northland was expected to be fully operational in the first half of the 2027 financial year. Elsewhere in the energy sector, Meridian gained 4c to $5.67, and Contact decreased 15c to $9.10.
Other gainers were Vulcan Steel increasing 20c or 3.26% to $6.33; Pacific Edge rising 1.5c or 5.88% to 27c; Synlait improving 1.5c or 3.95% to 39.5c; Heartland collecting 3c or 2.5% to $1.23; and Comvita adding 3.5c or 5.07% to 72.5c.
KMD Brands, up 2.5c to $1.69, told the market that group sales for the 2026 financial year are expected to be $1.04b-$1.044b, up 5% at the mid-point of the previous year. Operating earnings (ebitda) are expected to be $38m-$41m, up 123% on the 2025 full-year. For the 24 weeks to July 19, Kathmandu sales were up 4.8%; and Rip Curl down 2.8% on subdued Australian consumer sentiment. Oboz shoe sales returned to growth in the fourth quarter as anticipated. KMD said it was divesting its Southeast Asian manufacturing facility, with a phased production wind-down over 12 months, and would fetch net property proceeds of $5m-$7m and free up working capital of $6m.
NZ Rural Land Company was down 2.5c or 2.66% to 91.5c after telling the market it was owed $300,000 in rent from Kiwi Crunch Farms (now in receivership) at the end of June. It would not receive any more rental income or arrears until a new tenant was secured. NZ Rural said Kiwi Crunch no longer intends to use the three properties in Hawke’s Bay and they are now under its control – given the season, there is currently no significant operational on-orchard work required.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 5 points higher at 8824.
- close [Morningstar with AAP]: Australia's share market has improved after higher commodity prices supported miners and energy stocks, but confidence is shaky as the Iran conflict reaches a new front.
The S&P/ASX200 rose 29.7 points on Wednesday, up 0.34 per cent, to 8,823 as the broader All Ordinaries gained 28 points, or 0.31 per cent, to 9.004.9.
Gold stocks led the charge as the precious metal topped $US4,130 ($A5,904) an ounce, while BHP and Rio Tinto advanced as copper hit five-week highs, buoyed by strong demand from China and depleted global inventories.
The basic materials sector did most of the heavy lifting, Vantage senior market analyst Hebe Chen said.
"However, eight of the 11 sectors finished in the red, leaving the advance narrow and showing that investor confidence remains fragile rather than firmly on the mend," Ms Chen told AAP.
"Persistently higher oil prices could eventually become a headwind by lifting operating costs, adding to inflation and weighing on global growth and risk appetite."
Oil prices clung to recent gains as the US and Iran continued to trade strikes, and as two Asia-bound Saudi oil tankers turned back in the Red Sea over threats from Yemen's Iran-aligned Houthis.
The retreat marked the disruption of a second major choke point for global energy supplies, which will likely ratchet up inflation expectations.
Woodside, Santos and coal miners all rallied, along with uranium producers led by Paladin Energy after its quarterly trading update beat guidance.
The heavyweight financials sector was the third sector to notch a positive day, eking a less than 0.2 per cent improvement, as three of the big four banks crept higher.
CommBank was the best of the bunch with a 0.7 per cent lift to $171.69, while NAB edged lower to $39.27.
Health care, consumer discretionaries and real estate stocks were the worst-performing segments, each down more than 1.4 per cent as clouds gathered above the price growth and interest rate outlook.
In company news, SkyCity Entertainment rallied after making a deal to sell the Grand Hotel in Auckland to narrow debts and improve its balance sheet.
Bunnings owner Wesfarmers shares fell more than two per cent after taking a final investment decision on its Mount Holland Lithium Mine expansion, alongside joint venture partner SQM.
The Australian dollar is buying 69.95 US cents, down from 70.18 US cents, as investors look to Thursday's jobs data for hints on the Reserve Bank's path ahead.
Consensus expects an increase of 15,000 jobs, with the unemployment rate tipped to remain steady at 4.4 per cent, IG market analyst Tony Sycamore said.
"A softer-than-expected result - particularly a rise in the jobless rate toward 4.6 per cent - would suggest the RBA has tightened enough," he said.
"Conversely, a strong jobs report would add to tightening risks."
ON THE ASX:
The S&P/ASX200 rose 29.7 points, or 0.34 per cent, to 8,823
The broader All Ordinaries gained 28 points, or 0.31 per cent, to 9,004.9
The NZX 50 Lost -45.92 points (-0.33%) to 13717.26
Companies Holding Annual General Meeting (ASX 300):
Macquarie Group Limited
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended mixed. The DJIA was unchanged at 52,218.58, the S&P 500 declined 0.1% to 7,498.96 and the Nasdaq fell 0.6% to 25,690.90.
Among S&P 500 companies, the top three gainers were Super Micro Computer Inc SMCI surging 19.84%, Westinghouse Air Brake Technologies Corp WAB jumped 10.04%, and Dell Technologies Inc DELL lifted 9.32%.
The biggest decliners were GE Vernova Inc GEV which dropped 8.69%, ServiceNow Inc NOW fell 6.47%, and PTC Inc PTC lost 6.33%.
Asia
Chinese shares closed mixed. The benchmark Shanghai Composite Index lifted 0.1% to 3,867.03 and the Shenzhen Composite Index dropped 1.1% to 2,460.28.
Hong Kong shares ended lower. The benchmark Hang Seng Index declined 1% to 24,892.66.
Japanese shares ended lower. The Nikkei Stock Average fell 0.2% to 66,115.60.
India shares ended lower. The BSE SENSEX dropped 0.9% to 76,755.05.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index gained 1.2% to 10,716.97. In Europe, shares closed higher. The Germany's DAX lifted 0.6% to 25,155.41, and the France's CAC 40 rose 0.9% to 8,437.89
