Market Announcements
Market Summary
The New Zealand sharemarket fell more than 0.5% on a busy day that featured a bank merger, a healthcare sale and a sharp rebound by software firm Gentrack. The S&P/NZX 50 Index traded steadily in the morning but dipped strongly at midday and closed at 13,170.71, down 73.84 points or 0.56% after reaching an intraday high of 13,257.19. There were 69 gainers and 75 decliners on the main board with 57.9 million shares worth $199.2m changing hands.
Iran suspended talks with the US and threatened to close both the Hormuz and Bab-el-Mandeb Straits. Brent Crude oil jumped nearly 5% to US$94.10 a barrel. The major US indices still climbed to new highs. In May, the S&P 500 gained 5.1%, the Dow Jones was up 2.8%, and the Nasdaq Composite increased 8.4%, led by the large-cap tech and semiconductor stocks.
At home, Heartland Group increased 13c or 11.4% to $1.27 after telling the market it is proposing to merge with the New Plymouth-based TSB Bank – a move that will create a stronger regional standing and focus. Dual-listed Heartland will buy all the TSB shares from Toi Foundation for $620m and establish the TSB Heartland Bank. The merger is expected to be completed in December.
Green Cross Health surged 54c or 36% to $2.04 after announcing a conditional agreement to sell its medical division, The Doctors, to Tend Health for $270m. Privately owned Tend, which provides online GP services, would end up with 90 clinics and more than 550,000 enrolled patients. Green Cross said it would refocus on its core pharmacy business under the Unichem and Life Pharmacy brands.
Gentrack rose 29c or 7.9% to $3.96 on the back of a sharp rally in software-as-a-service (Saas) stocks offshore.
Accounting software firm Xero had gained 7.6% to A$87.14/NZ$105.19 (at 6pm NZ time) on the Australian stock exchange. The dual-listed banking groups ANZ and Westpac were down $1.73, or 4.05%, to $40.95 and $0.80, or 1.84%, to $42.75, respectively.
Infratil and Fisher & Paykel Healthcare led the local market lower, declining 47c, or 2.98%, to $15.29 and 49c, or 1.34%, to $36.80, respectively. Fisher & Paykel accounted for trade worth $30.74m. Skellerup fell 22c or 3.58% to $5.93; Vista Group shed 15c or 5.79% to $2.44; Vulcan Steel decreased 24c or 3.61% to $6.40; and Sanford was down 16c or 2.13% to $7.36. Other decliners were Briscoe, down 10c or 2.13% to $4.60; Eroad, falling 4.5c or 4.29% to $1; and Bremworth, decreasing 3.5c or 4.67% to 71.5c.
Amongst the gainers, Mercury Energy was up 10c to $7.05; Genesis added 6c or 2.39% to $2.57; Third Age Health increased 20c or 4.17% to $5, Foley Wines rose 4c or 9.3% to 47c; and Comvita improved 2c or 2.94% to 70c.
Infant formula supplier a2 Milk, up 15c or 2.29% to $6.70, said equities analyst CLSA Australia had recommended a downgrade, citing uncertainty over supply delays – following a price query from the ASX.
Vector was down 5c to $4.99 after saying it's retaining its fibre business and will pursue growth opportunities, including through data centre and 5G expansion in Auckland.
Air NZ, down 1c to 43c, reported total passengers of 1.253m in April, up 2.2%, and the load factor was 85.8%, up from 83.9% in the same month last year.
Stride Property, down 3c or 2.58% to $1.13, has appointed David Green, a director since June last year, as chair to replace Tim Storey, who has resigned. Ventia Services was up 15c or 1.99% to $7.70 after securing a five-year extension, worth $133m, to operate the Australian Marine Centre user facility in Henderson, Western Australia.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 38 points higher at 8789.
- close [Morningstar with AAP]: Australia's share market has trimmed early losses but ended the session slightly lower, with Persian Gulf tensions and underwhelming economic data weighing on confidence.
The S&P/ASX200 fell five points on Tuesday, down 0.06 per cent, to 8,724.4, while the broader All Ordinaries slipped 3.8 points, or 0.04 per cent, to 8,966.
The market started the day on the back foot amid signs US-Iran peace negotiations were stalling, but an afternoon rebound in mining stocks helped cap losses.
"With banks, insurers, and real estate investment trusts under pressure, as well as defensive retailers, retail generally and infrastructure, I would be saying this is related to interest rate concerns, but there has been no events today that are speaking to that," Moomoo market strategist Michael McCarthy told AAP.
"There's clearly some fears about growth prospects as well, but I think that's one of the interesting things about the moment that the clear investment theme that we saw in the first couple of months of the year has now fractured into all sorts of different takes."
Basic materials jumped 1.3 per cent as BHP hit a new record and Rio Tinto narrowed on its all-time peak, as copper prices edged higher.
Gold miners were mixed but broadly higher, as the yellow metal firmed to $4,529 ($A6,316) an ounce.
Northern Star shares rocketed more than 13 per cent to $21.03, after major shareholder Elliott Investment Management called for a strategic review and to consider putting itself up for sale.
Banks were heavy as the financials sector tumbled one per cent, with ANZ leading all big four banks lower as its shares fell three per cent to eight-month lows of $34.
Consumer stocks were under pressure after the Fair Work Commission approved a 4.75 per cent increase to the minimum wage, while real estate trusts slumped after April building approvals fell by more than expected.
Local tech stocks outperformed the market, up almost five per cent after a strong lead from US tech overnight, and as dip-buyers picked up software stocks that were hammered in recent months over artificial intelligence disruption fears.
Energy stocks improved despite oil edging lower over the session, although Woodside offered a ballast for the segment with a 1.8 per cent lift to $31.21.
In company news, Droneshield bounced 3.6 per cent after inking a fresh US military contract.
4DMedical shares dropped almost six per cent after launching a clinical evidence program to fast-track its entry into the $US2.5 billion ($A3.5 billion) pulmonary embolism market.
Health care stocks more broadly were under selling pressure, with imaging software provider Pro Medicus soaring for a second day after announcing $46 million in new and renewed contracts.
Looking ahead, all eyes would be on Wednesday's March quarter GDP figures, as investors looked for signs of how Australia's economy was tracking heading into the Middle East energy crisis and the Reserve Bank's recent monetary tightening, IG market analyst Tony Sycamore said.
The Australian dollar is buying 71.78 US cents, down from 71.83 US cents on Monday at 5pm AEST.
ON THE ASX:
The S&P/ASX200 slipped five points, or 0.06 per cent, to 8,724.4
The broader All Ordinaries eased by 3.8 points, or 0.04 per cent, to 8,966
The NZX 50 added 10.10 points (0.08%) to 13180.81
Companies commencing Ex-Dividend Trading Today (ASX 300):
Qualitas Real Estate Income Fund
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended mixed. The DJIA rose 0.4% to 51,307.79, the S&P 500 gained 0.1% to 7,609.78 and the Nasdaq was unchanged at 27,093.90.
Among S&P 500 companies, the top three gainers were Hewlett Packard Enterprise Co HPE surging 19.47%, Coherent Corp COHR jumped 17.63%, and Lumentum Holdings Inc LITE lifted 13.72%.
The biggest decliners were The Trade Desk Inc TTD which dropped 9.13%, Intuit Inc INTU fell 8.94%, and Cboe Global Markets Inc CBOE lost 8.44%.
Asia
Chinese shares closed higher. The benchmark Shanghai Composite Index climbed 0.4% to 4,075.10 and the Shenzhen Composite Index lifted 0.8% to 2,805.21.
Hong Kong shares ended higher. The benchmark Hang Seng Index rose 2.5% to 26,038.32.
Japanese shares ended lower. The Nikkei Stock Average declined 0.3% to 66,734.24.
India shares ended higher. The BSE SENSEX climbed 0.5% to 74,649.84.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index lifted 0.3% to 10,373.51. In Europe, shares closed higher. The Germany's DAX gained 0.5% to 25,124.17, and the France's CAC 40 climbed 0.8% to 8,209.09
