Market Announcements
Market Summary
New Zealand’s biggest company Fonterra produced another strong financial result. But global sharemarkets were even more focused on the strong war messages coming out of Iran and the United States. The S&P/NZX 50 Index fell at the opening and never really recovered, declining 90.27 points or 0.69% to 12,899.72 – its third successive sharp fall. There were 114 decliners and just 24 gainers on the main board, with 44.09 million shares worth $139.9m changing hands.
Markets were spooked by US President Donald Trump giving Iran an ultimatum to open the Strait of Hormuz before American forces “obliterate” their power plants; and Iran responded with threats to completely shut the strait. Tehran said it would target energy and oil infrastructure, with Mohammad Bagher Ghalibaf, the Iranian Parliament’s speaker, warning that oil prices would “rise for a long time” as a result.
Across the Tasman, the S&P/ASX 200 Index was down 0.74% to 8366.4 points at 6pm NZ time, and wider afield the Japanese Nikkei 225 had fallen 3.48% to 51,515.03, and the Hong Kong Hang Seng had declined 3.47% to 24,400.46. Brent Crude oil was trading at US$112.9 a barrel, after reaching an intraday high of $114. The NZ dollar was weaker against the American greenback at US58.1c.
Dairy giant Fonterra reported an 11% increase in revenue to $13.92 billion and net profit of $750m, up 3%, for the six months ending January. Full-year earnings guidance was upgraded to 50-65c, from 45-65c, for continuing operations, and Fonterra is paying a dividend of 40c a share on April 14 – an interim of 24c and special Mainland dividend of 16c. The co-op lifted its forecast farmgate milk price from $9.50 to $9.70 per kgMS because of stronger commodity prices. Fonterra said the Middle East conflict was having an impact on its supply chain and had the potential to increase inventory levels and costs over the course of the second half of the year. Fonterra Co-operative’s share price was unchanged at $6.22, and the Shareholders’ Fund increased 20c or 3.43% to $8.43.
Auckland International Airport was down 10c to $8.10; Fletcher Building decreased 11c or 3.35% to $3.17; Mainfreight declined $2.32 or 3.85% to a seven-month low of $58.01; Napier Port eased 8c or 2.22% to $3.52.
Retirement village operators Summerset shed 29c or 3.09% to $9.09, and Ryman Healthcare decreased 11c or 4.89% to $2.14, its lowest for nearly 10 months. Serko was down 14.5c or 8.86% to $1.59; Tourism Holdings declined 18c or 7.79% to $2.13; Air New Zealand decreased 1.5c or 3.49% to 41.5c; Briscoe shed 10c or 2.13% to $4.60; Heartland Group was down 4.5c or 3.64% to $1.19; and NZME gave up 3.5c or 3.08% to $1.12.
The dual-listed stocks ANZ fell $2.45 or 5.33% to $43.50, and Westpac was down $1.49 or 2.97% to $48.71. Market leader Fisher & Paykel Healthcare was up 59c to $37; Infratil gained 7c to $10.90; and The Warehouse collected 2c or 3.08% to 67c.
Synlait Milk was up 1.5c or 3.69% to 50c despite reporting a net loss of $80.62m on revenue of $949.03m, up 4%, for the six months ending January. Synlait has net debt of $472.1m, up 88%, but the $307m sale of the Pokeno plant to Chicago-based Abbott is expected to be completed next week. Chief executive Richard Wyeth said Synlait faced multiple headwinds and had little choice as to how to deal with them. “They reflect a severe lack of optionality, not effort, and they do not define the company’s future – although recovery will take time.” Synlait has outlined a “stabilise, simplify and scale” roadmap to recovery. Its forecast milk price for the 2025/26 season is $9.50 per kgMS, with additional premium payments making $9.90.
Genesis Energy, down 6c or 2.7% to $2.16, has completed the shortfall bookbuild for its $300m rights offer and has raised $400m, including the earlier $100m placement. Mercury Energy, down 11c to $6.40, has launched a $200m, seven-year, green bond, with the ability to accept $50m oversubscriptions. Elsewhere in the energy sector, Meridian decreased 5c to $5.44; and Vector was down 7c to $4.61.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 166 points higher at 8552.
- close [Morningstar with AAP]: Australia's share market has trimmed some losses but still ended at its lowest level since May 2025, as the Middle East conflict continues to wreak havoc on energy prices.
The S&P/ASX200 fell 62.5 points on Monday, down 0.74 per cent, to 8,365.9, as the broader All Ordinaries lost 75.7 points, or 0.88 per cent, to 8,552.6.
Both indices fell into correction territory in the morning - down more than 10 per cent from recent record highs - while the basic materials sector is in a technical bear market, down more than a fifth from its peak.
The All Ordinaries has tumbled 9.3 per cent since the conflict began, wiping almost $300 billion from the index's combined value after the effective closure of the Strait of Hormuz lit a match under oil prices.
"When the world's most critical oil choke point becomes a public bargaining chip, there are few places to hide ??? and Australia's commodity-heavy market is feeling that more acutely than most," Vantage senior market analyst Hebe Chen told AAP.
"Basic materials stocks are caught in an especially cruel position ??? the same war that pushed oil higher is now threatening to slow the economies that consume Australia's iron ore, copper, and coal."
Gold prices tumbled to two-month lows near $US4,364 ($A6,258) an ounce, down from January's record $US5,595, pummelling ASX-listed gold miners like Evolution and Northern Star, which sunk seven per cent or more.
Mega miners BHP and Rio Tinto were also heavy, with Rio down 1.7 per cent to $144.41 and BHP fading 0.8 per cent to $47.11, despite iron ore futures holding steady near $US107.
Energy and utilities stocks performed well, each segment up 1.2 per cent or more as Woodside, Santos and Origin rallied, while coal and uranium producers were mixed.
The owners of Australia's two remaining crude oil refineries, Ampol and Viva, both posted gains after the federal government flagged subsidies last week to keep plants running at times when costs outweigh fuel prices.
Airlines were under heavy selling pressure, with Virgin Australia plummeting 8.2 per cent and Qantas down 2.3 per cent, as jet fuel costs spiral.
Of the two, only Virgin operates direct flights to the Middle East.
The big four banks weighed heavily on the bourse, led by a 1.8 per cent slump in NAB shares to $44.74.
NAB's share price has underperformed its major competitors since Morgan Stanley named the bank as most at risk of a significant downgrade in a research note last week.
In company news, ARN Media dived 4.6 per cent to 31.5 cents as Kyle Sandilands launched legal action over the termination of his $100 million contract after the Kyle and Jackie O Show was pulled off air.
The broader market slump could have further to go, with AMP forecasting for a correction of about 15 per cent from recent highs, the group's chief economist Shane Oliver said.
"Our base case is that the war and oil shock will be relatively short as Iran will not be able to keep the Strait closed indefinitely and Trump will look for an off-ramp as political pressure builds ahead of the midterms," Dr Oliver said.??
"But it could still go on for weeks yet and so could still see oil prices rise more in the interim say to $US150."
Brent crude oil has soared from around $73 a barrel in February to as much as $US119.44, and is now trading near $US112.??
The Australian dollar is buying 69.63 US cents, down from 70.86 US cents on Friday at 5pm, fading against greenback strength.
ON THE ASX:
The S&P/ASX200 dropped 62.5 points, or 0.74 per cent, to 8,365.9
The broader All Ordinaries fell 75.7 points, or 0.88 per cent, to 8,552.6
The NZX 50 added 91.13 points (0.70%) to 12990.85
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended higher. The DJIA added 1.4% to 46,208.47, the S&P 500 climbed 1.1% to 6,581.00 and the Nasdaq lifted 1.4% to 21,946.76.
Among S&P 500 companies, the top three gainers were Albemarle Corp ALB surging 6.93%, Smurfit WestRock PLC SW jumped 6.88%, and Qnity Electronics Inc Q lifted 6.81%.
The biggest decliners were The Estee Lauder Companies Inc EL which dropped 7.77%, Fair Isaac Corp FICO fell 5.81%, and Centene Corp CNC lost 4.65%.
Asia
Chinese shares closed lower. The benchmark Shanghai Composite Index fell 3.6% to 3,813.28 and the Shenzhen Composite Index slipped 4.2% to 2,480.75.
Hong Kong shares ended lower. The benchmark Hang Seng Index slipped 3.5% to 24,382.47.
Japanese shares ended lower. The Nikkei Stock Average fell 3.5% to 51,515.49.
India shares ended lower. The BSE SENSEX dropped 2.5% to 72,696.39.
Europe
Stocks in the U.K. finished lower. The FTSE 100 Index slipped 0.2% to 9,894.15. In Europe, shares closed higher. The Germany's DAX lifted 1.2% to 22,653.86, and the France's CAC 40 rose 0.8% to 7,726.20
