Market Announcements
Market Summary
The New Zealand sharemarket rose more than 1% yesterday following rebounds offshore, and investors’ attention is turning to this week’s trillion-dollar listing by Elon Musk’s SpaceX. The S&P/NZX 50 Index started slowly and hit a morning low of 13,022.9 but traded strongly in the afternoon to close at 13,204.08, up 165.84 points or 1.27%. There were 91 gainers and 52 decliners on the main board with 51.3 million shares worth $175m changing hands.
The Japanese Nikkei 225 was up 2.06% at 6pm NZ time, and the South Korean Kospi had risen 7.29%.
SpaceX is listing on the Nasdaq Composite Saturday morning NZ time at a price of US$135 a share (NZ$231.58), giving the company an initial market capitalisation of US$1.77 trillion, making it the largest initial public offering (IPO) on record. There are 13.1b shares worth US$75b on offer. NZ-founded Rocket Lab has risen 49.5% so far this year and is currently trading at US$113.65, having reached a May 27 peak of US$150.23.
The Brent Crude oil price was down slightly, trading at US$93.20 a barrel, while a stand-off continued in the Middle East negotiations.
At home, market heavyweight Fisher & Paykel Healthcare led the way by rising $1.04 or 2.79% to $38.30. Mainfreight rose $3 or 4.84% to $65; Freightways was up 20c to $13.40; Auckland International Airport increased 17c or 2.09% to $8.29; Chorus added 26c or 2.76% to $9.69; and Vista Group rebounded 11c or 5.16% to $2.24. Ebos Group continued to climb, up 40c or 1.95% to $20.90; Summerset increased 35c or 4.5% to $8.13; NZME was up 2.5c or 2.24% to $1.14; and the NZX rose 5c or 3.79% to $1.37.
Economically-sensitive stocks had a better day, with Fletcher Building up 13c or 4.29% to $3.16; Vulcan Steel increasing 32c or 5.35% to $6.30; and Air NZ rising 2.5c or 6.02% to 44c. Spark decreased 5c or 2.63% to $1.85; a2 Milk shed 23c or 3.52% to $6.30; Third Age Health fell 15c or 3.16% to $4.60; Eroad declined 2.5c or 2.28% to $1.07; and Oceania Healthcare was down 1.5c or 2.01% to 73c.
In the energy sector, Mercury decreased 10c to $6.80; Genesis was down 4c to $2.53; Meridian gained 3c to $5.80; and Contact was up 4c to $9.52. Scott Technology increased 15c or 6.17% to $2.58 after announcing $12m worth of new materials handling and logistics contracts in Europe and North America. The contracts include an extension order with Dutch vegetable processor Bakker, a new palletising installation for a frozen potato facility in Canada, and an integrated palletising and automated guided vehicle solution for a poultry processor within the JBS Group in Georgia, US. Manuka honey producer Comvita, up 2c or 2.99% to 69c, has appointed Michael Chye, chief executive of BeerCo, as the Fraser and Neave representative on the board. Singapore-listed Fraser and Neave has taken a 19.9% shareholding in Comvita. Tāiko Critical Minerals, down 1.5c or 6% to 23.5c, has lodged a fast-track application for mining the southern block of the Barrytown project on the West Coast.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 13 points higher at 8624.
- close [Morningstar with AAP]: Australia's share market has trimmed early losses after NAB economists predicted the Reserve Bank is done hiking interest rates, while miners were under pressure from heavy commodity prices.
The S&P/ASX200 fell 20.9 points on Tuesday, down 0.24 per cent, to 8,604.2, as the broader All Ordinaries trimmed 31.1 points, or 0.35 per cent, to 8,824.8.
The top-200 reclaimed most of a more than 1.5 per cent drop in the morning as dip-buyers entered after NAB economists predicted the Reserve Bank's next move would be an interest rate cut.
"We no longer expect the RBA to hike by 25 basis points in August, and now see the cash rate peaking at the current rate of 4.35 per cent for the cycle," NAB chief economist Sally Auld wrote in a a research note.
"The next move in the cash rate is likely to be down, but the timing is uncertain."
Basic materials tumbled more than two per cent after gold fell into an official bear market on Friday, down more than 20 per cent from January's record peak after US figures dimmed hopes for Federal Reserve interest rate cuts in 2026, supporting the greenback.
"The strength of the US dollar has certainly been one of the issues for metals prices, and that might have been starting to have more of an impact on the broader market," Moomoo market strategist Michael McCarthy told AAP.
"I'm looking at these stocks, and these are the top-100 stocks and they're moving by two, three, four per cent - this is still a sign of an unstable market."
Mega miners BHP, Rio Tinto and Fortescue also stumbled under the weight of a higher greenback as iron ore and copper prices fell.
Of the top-200's 35 worst-performers, 34 were resource stocks.
As miners fell, heath care, consumer-facing, real estate and communications stocks rebounded as the day wore on, each segment gaining more than 1.2 per cent in broad, segment-wide rallies.
The boost to consumer-facing and real estate sectors came as NAB economists predicted the future RBA rate cut.
The heavyweight financials sector overcame its early trouble to end the day slightly better than flat, although NAB still fell a hefty 1.7 per cent to $35.96.
Energy stocks eased 0.2 per cent as oil tipped lower on reports Iran and Israel will pause strikes on each other for the time being, although uranium stocks couldn't escape the rout in metals prices.
In company news, oOh!media shares soared more than nine per cent after confirming a $765 million takeover bid from Bain Capital, going up against an existing offer from Pacific Equity Partners and I Squared Capital.
Shares in building material manufacturer James Hardie slipped more than 2.4 per cent after pledging to fight a class action lawsuit shareholders have launched over alleged continuous disclosure breaches.
The Australian dollar is buying 70.58 US cents, down from 71.25 US cents on Friday at 5pm, after the hawkish repricing for US interest rates supported the greenback.
ON THE ASX:
The S&P/ASX200 lost 20.9 points, or 0.24 per cent, to 8,604.2??
The broader All Ordinaries fell by 31.1 points, or 0.35 per cent, to 8,824.8
The NZX 50 Lost -62.52 points (-0.48%) to 13141.56
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended mixed. The DJIA climbed 0.2% to 50,872.11, the S&P 500 fell 0.3% to 7,386.65 and the Nasdaq dropped 1% to 25,678.82.
Among S&P 500 companies, the top three gainers were JM Smucker Co SJM surging 10.44%, Amphenol Corp APH jumped 7.29%, and Pool Corp POOL lifted 6.34%.
The biggest decliners were Coherent Corp COHR which dropped 11.44%, Lumentum Holdings Inc LITE fell 8.26%, and Super Micro Computer Inc SMCI lost 7.66%.
Asia
Chinese shares closed higher. The benchmark Shanghai Composite Index rose 1.3% to 4,010.03 and the Shenzhen Composite Index lifted 2.4% to 2,742.63.
Hong Kong shares ended lower. The benchmark Hang Seng Index slipped 0.4% to 24,565.90.
Japanese shares ended higher. The Nikkei Stock Average gained 2.2% to 65,416.63.
India shares ended higher. The BSE SENSEX climbed 0.5% to 73,918.76.
Europe
Stocks in the U.K. finished lower. The FTSE 100 Index dropped 1.4% to 10,227.33. In Europe, shares closed mixed. The Germany's DAX slipped 0.7% to 24,433.06, and the France's CAC 40 gained 0.1% to 8,203.43
