Market Announcements
Market Summary
Most leading stocks ended weaker on the New Zealand sharemarket yesterday on the back of soft export data, while corporate activity bubbled away in the background. The S&P/NZX 50 Index closed down 127.82 points or 0.99% at 12,883.69, with 35.4 million shares worth $184.2m trading. There were 81 falls and 56 gains on the main board. US stocks continued their march higher, with the Nasdaq and the S&P 500 reaching new record highs amid optimism about the upcoming reporting season for the June quarter, as reports from Tesla and Alphabet (Google) are due this week.
Hamilton Hindin Greene investment adviser Jeremy Sullivan said weak trade data for the June quarter showed the NZ economy still had work to do to achieve growth. Stats NZ data showed goods exports fell 3.7% to $19.7 billion in the June quarter, following an 11% rise in the March 2025 quarter. The quarterly trade balance was a deficit of $709m. “Our market has come back on the New Zealand export data from Stats NZ showing a decline for the first time since Q3 2023, which points to a weaker economy, but I think we just need to zoom out a little bit and realise that there was a surge in the last quarter and dairy exports are still very high,” Sullivan said. “The trade data, combined with Monday's inflation data, will give the Reserve Bank of NZ (RBNZ) comfort to cut the official cash rate (OCR) on August 20, and that’s certainly what the market is pricing in."
Fisher & Paykel drop Fisher & Paykel Healthcare, which has the biggest impact on the local index, dropped 38c, or 1%, to $36.69. Most other leading issues were also weaker, including Auckland International Airport, down 20c or 2.5% to $7.60, a2 Milk, down 6c (0.7%) to $8.47, Freightways, down 19c (1.69%) to $11.06, and Mainfreight, down 80c (1.2%) to $66.20. Fletcher sale Fletcher Building gained a cent to close at $3.06 after advising that it had begun exploring potential divestment options in relation to its Construction Division and its Higgins, Brian Perry Civil and Fletcher Construction Major Projects business units. “Fletcher is, of course, testing the water with Higgins and Brian Perry,” Sullivan said. “The Higgins side of the business is very profitable, so there is potential for them to free up a bit of capital and reduce debt, and, of course, that was signalled in the 2024 strategic review as well."
Sky TV rallied by 14c or 4.8% to $3.06 after announcing that it had agreed to acquire 100% of the financially troubled TV3 for $1. “It’s fair to say there’s probably plenty of costs in the back office that they (Sky) can look to reduce, and, while it sounds like it’s a loss-making entity, it doesn’t sound like it’s losing a lot,” he said. Black Pearl a gem Data technology company Black Pearl Group was one of the best performers on the day, ending 8c (7.1%) higher at $1.20 on light volume. Black Pearl earlier said it had achieved $14.0m in annual recurring revenue (ARR) at the end of its first quarter to June 30. Since then, the company has announced the conditional acquisition of B2B Rocket. Including B2B Rocket’s ARR as at the same date, total ARR would be $17.5m – representing a 105% increase compared to Blackpearl’s June 2024 figure, it said. Aged care company Third Age Health gained 4c to $4.32 after announcing that CEO Tony Wai was stepping down, effective from October. Wai said the business was well-positioned for continued growth.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 19 points higher at 8582.
- close [Morningstar with AAP]: The Australian share market has edged higher as the rotation continues from Australia's expensive retail banks to its cheaper major miners.
The benchmark S&P/ASX200 index on Tuesday finished up 9.0 points, or 0.1 per cent, to 8,677.2, while the broader All Ordinaries gained 15.3 points, or 0.17 per cent, to 8,941.5.
Traders were digesting minutes from the Reserve Bank's July 7-8 meeting, in which the central bank surprised observers by declining to trim interest rates.
ANZ head economist Adam Boynton said the minutes left unchanged the bank's view that the RBA would cut rates in both August and November.
Market participants were also pondering the reason for Monday's 1.0 per cent pullback, which followed a 1.37 per cent rally on Friday that had left the index at its highest level ever.
Monday's heavy sell-off following Friday's record high mirrored a pattern that had occurred about half a dozen times in 2024, IG analyst Tony Sycamore said.
"I'm still struggling to explain what was behind that," he told AAP.
It was possible the pullback was profit-taking before the August earnings season, which was likely to highlight stretched valuations in certain sectors, particularly the banks, Mr Sycamore said.
"There has been noticeable rotation from out of the banks into the big mining stocks, really, since the start of this new financial year," he said.
"And that seems to be gathering a little bit of pace as well."
Investors might also be following the lead of Warren Buffett, who had been liquidating his bank holdings, Mr Sycamore said.
Commonwealth Bank on Tuesday dropped 3.1 per cent to $172.42 in its worst daily performance since a 6.2 per cent drop on April 7.
Australia's biggest bank is still up 12.5 per cent for the year, but has dropped 10.2 per cent since hitting a record high nearly four weeks ago.
The other big retail banks all finished in the red as well, with NAB subtracting 2.7 per cent to $37.22, Westpac falling 1.3 per cent to $32.65 and ANZ retreating 0.8 per cent to $29.82.
The ASX's financial sector as a whole was its worst performing on Tuesday, dropping 1.7 per cent, while the materials/mining sector was the best performing, rising 2.4 per cent.
BHP grew 2.6 per cent to $41.51, Fortescue advanced 3.3 per cent to $17.81 and Rio Tinto added 3.4 per cent t $118.32.
Goldminers also did well as the yellow metal traded for a one-month high of just under $US3,400 an ounce.
Newmont and Evolution both rose 2.8 per cent while West African Resources climbed 8.6 per cent.
Also, WA goldminer Spartan Resources rose 8.4 per cent to $2.13 on its last day of trading on the ASX before it is acquired by peer Ramelius Resources in a $2.4 billion cash and scrip transaction.
Ramelius gained 8.1 per cent to $2.52.
Back in the financial sector, Insignia had soared 12.2 per cent to $4.41 after the company formerly known as IOOF agreed to be acquired by a US-based private equity firm for $3.2 billion.
CC Capital will pay $4.80 a share, a 56.9 per cent premium from Insignia's share price in December when news of its interest first became public, but less than the $5 per share price that CC lobbed in March.
The acquisition includes MLC Wealth, the investments and superannuation business that IOOF bought from NAB in 2021.
The Australian dollar was buying 65.14 US cents, from 65.17 US cents about 5pm on Monday.
ON THE ASX:
The benchmark S&P/ASX200 index on Tuesday gained 9.0 points, or 0.1 per cent, to 8,677.2
The broader All Ordinaries climbed 15.3 points, or 0.17 per cent, to 8,941.5.
The NZX 50 Lost -12.37 points (-0.10%) to 12821.37
Companies Holding Annual General Meeting (ASX 300):
Australian Agricultural Company Limited
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended mixed. The DJIA climbed 0.4% to 44,502.44, the S&P 500 lifted 0.1% to 6,309.62 and the Nasdaq dropped 0.4% to 20,892.69.
Among S&P 500 companies, the top three gainers were IQVIA Holdings Inc IQV surging 17.88%, D.R. Horton Inc DHI jumped 16.98%, and PulteGroup Inc PHM lifted 11.52%.
The biggest decliners were Lockheed Martin Corp LMT which dropped 10.81%, MSCI Inc MSCI fell 8.91%, and Philip Morris International Inc PM lost 8.43%.
Asia
Chinese shares closed higher. The benchmark Shanghai Composite Index added 0.6% to 3,581.86 and the Shenzhen Composite Index gained 0.6% to 2,188.95.
Hong Kong shares ended higher. The benchmark Hang Seng Index rose 0.5% to 25,130.03.
Japanese shares ended lower. The Nikkei Stock Average slipped 0.1% to 39,774.92.
India shares ended flat. The BSE SENSEX was unchanged at 82,186.81.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index lifted 0.1% to 9,023.81. In Europe, shares closed lower. The Germany's DAX dropped 1.1% to 24,041.90, and the France's CAC 40 slipped 0.7% to 7,744.41
