Market Announcements
Market Summary
The New Zealand sharemarket surged more than 1% after the latest business outlook survey revealed that the Reserve Bank does not need to rush into hiking the Official Cash Rate. The S&P/NZX 50 Index climbed strongly throughout the afternoon and closed at 12,903.31, a gain of 133.01 points or 1.04% – the biggest single-day move in three weeks, despite the oil price reaching its highest level since the Iran war broke out at the end of February. There were 87 gainers and 51 decliners on the main board, and volumes increased to 69.7 million shares worth $271.1m.
Fisher and Paykel Healthcare, up 30c to $36.55, and Auckland International Airport, gaining 7c to $8.25, dominated the turnover with trades worth $41.94m and $41.15m respectively.
Business confidence fell from 32.5 in March to minus 10.6 in April, at least higher than the minus 22.5 average seen in the late-March responses. Expected own activity fell from 39.3 to 19.6.
The US Federal Reserve kept its rates unchanged at 3.5-3.75%, but the vote was divided, 8-4. Quarterly earnings results from Amazon, Alphabet (Google), Meta Platforms (Facebook), and Microsoft were mostly positive, with revenue increases – Alphabet’s was up 22%. But Meta was a laggard after saying it was investing heavily, some US$145 billion (NZ$248.8b), in artificial intelligence infrastructure, and there was disappointing growth in users.
Brent Crude oil surged to US$123.8 a barrel – the previous high was US$119 on March 31 – on the back of failed diplomatic efforts to reopen the Hormuz Strait and a continuing US military buildup in the region.
At home, blue-chip stocks had a stronger day, leading the market higher. Infratil gained 17c to $12.47; Ebos Group added 29c to $21.28; Mainfreight collected 50c to $59; and Port of Tauranga increased 21c or 2.6% to a new high of $8.30.
In the energy sector, Meridian gained 13c or of 2.34% to $5.68; Contact was up 18c or 1.93% to $9.50; and Genesis added 8c or 3.35% to $2.47. Gentrack was up 8c to $6.03 after telling the market it is buying airport services provider Dubai Technology Partners for $17m. The purchase is expected to add $3.5m revenue to Gentrack’s Veovo business in the four months remaining in the 2026 financial year.
Other gainers were Eroad increasing 4c or 4.32% to 96.5c; Fonterra Shareholders’ Fund up 15c or 2.34% to $6.55; Vista Group improving 3.5c or 1.;9% to $1.88; and Scales Corp adding 12c or 2.02% to $6.07. In the property sector, Investore gained 3c or 2.94% to $1.05; Kiwi was also up 3c or 3.39% to 91.5c; and Vital Healthcare Trust added 4.5c or 2.41% to $1.90. Michael Hill was down 2c or 4.12% to 46.5c, and Delegat Group shed 11c or 2.74% to $3.90.
T&G Global, unchanged at $2.48, is negotiating the sale of its fresh produce business (tomato, berry, citrus and stone fruit growing operations, wholesale market network, export, prepacking and transport) to the founding Turner family. Wholesale Foodservice distributor Bidfood is likely to buy T&G’s Fijian and Pacific businesses. T&G wants to focus on its apples and VentureFruit operations. T&G also advised that BayWa Global Produce GmbH is planning to exit its 74% shareholding. T&G has appointed Goldman Sachs as financial advisor to assess options, including a potential sale of the company.
Synlait Milk, up 0.005c to 42c, acknowledged that its losses, mainly in January, contributed to a first-quarter net loss of 236.43m yuan (NZ$59.24m) for its majority shareholder, Chinese Bright Dairy & Food Co.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 44 points higher at 8686.
- close [Morningstar with AAP]: The Australian bourse has continued its losing streak into its eighth-straight day as oil prices rocketed and the realities of a prolonged energy shock hit home for Woolworths and other exposed businesses.
The S&P/ASX200 finished Thursday down 21.2 points, or 0.2 per cent, to 8665.8 while the broader All Ordinaries eased 28.1 points, or 0.32 per cent, to 8887.6.
Brent crude prices soared above $US125 a barrel - the highest levels reached since the Middle East war began - following reports of a possible military escalation by US President Donald Trump amid gridlocked talks with Iran.
Moomoo Australia and New Zealand market strategist Michael McCarthy said markets were caught in a bind.
"There was a lot of optimism, particularly coming out of the US, but shared by some investors around the globe, that the conflict in the Middle East would be quickly resolved," Mr McCarthy told AAP.
"That confidence is being eroded."
Australian oil and energy stocks closed higher but weakening sentiment weighed on consumer staples and mining stocks.
Australian supermarket chain Woolworths warned higher fuel costs due to the Middle East war were putting customers under pressure and adding to operating costs, clouding its earnings outlook with uncertainty.
Shares in the grocery giant fell 7.8 per cent, with competitor Coles down 3.6 per cent.
The two big supermarkets have also been accused of deceiving customers with misleading discount pricing claims by the consumer watchdog, which is pursuing them in the Federal Court.
Miners were broadly lower on weaker gold prices and a deteriorating global growth outlook.
Diversified miner South32 dived 5.4 per cent after reporting cost overruns and delays on one of its projects, while lithium and iron ore player Mineral Resources defied the trend with a 2.9 per cent gain after upgrading full-year guidance across parts of the business.
BHP fell 2.2 per cent to $53.72, Rio Tinto slipped 2.0 per cent to $167.40 and Fortescue dipped 2.8 per cent to $19.65.
Australian tech was mixed after reporting from four of the Magnificent Seven stocks showcased a rosy outlook for the artificial intelligence boom.
Mr McCarthy said Australian tech stocks with AI exposure were performing best, including data centre operator NextDC, up 1.7 per cent, and logistics tech company WiseTech, which gained 3.4 per cent.
"It's not buy all tech, it's buy particular tech," he said.
Financial stocks finished higher, with ANZ outperforming the other Big Four banks, up 1.3 per cent to $36.65.
CommBank gained 0.9 per cent to $173.66, Westpac lifted 0.7 per cent to $38.50 and NAB climbed 0.5 per cent to $39.88.
Exchange operator ASX Ltd stocks climbed 5.1 per cent after group executive for markets and listings Darren Yip was appointed interim chief executive.
The Australian dollar is buying 71.16 US cents, down from 71.58 US cents at close on Wednesday.
ON THE ASX:
*The S&P/ASX200 finished down 21.2 points, or 0.2 per cent, to 8665.8
*The broader All Ordinaries eased 28.1 points, or 0.32 per cent, to 8887.6
The NZX 50 Lost -9.92 points (-0.08%) to 12893.39
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended higher. The DJIA rose 1.6% to 49,652.14, the S&P 500 added 1% to 7,209.01 and the Nasdaq rose 0.9% to 24,892.31.
Among S&P 500 companies, the top three gainers were Quanta Services Inc PWR surging 15.78%, Qualcomm Inc QCOM jumped 15.10%, and Teradyne Inc TER lifted 12.22%.
The biggest decliners were Willis Towers Watson PLC WTW which dropped 11.65%, International Paper Co IP fell 9.41%, and Meta Platforms Inc META lost 8.65%.
Asia
Chinese shares closed higher. The benchmark Shanghai Composite Index added 0.1% to 4,112.16 and the Shenzhen Composite Index lifted 0.1% to 2,776.23.
Hong Kong shares ended lower. The benchmark Hang Seng Index slipped 1.3% to 25,776.53.
Japanese shares ended lower. The Nikkei Stock Average declined 1.1% to 59,284.92.
India shares ended lower. The BSE SENSEX slipped 0.8% to 76,913.50.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index lifted 1.6% to 10,378.82. In Europe, shares closed mixed. The Germany's DAX added 1.4% to 24,292.38, and the France's CAC 40 was unchanged at 8,114.84
