Market Announcements
Market Summary
The New Zealand sharemarket put in a solid performance overall yesterday as unemployment crept up, tech stocks were battered, and Synlait Milk faced a significant loss. Apart from a late morning dip to an intraday low of 13,304.53, the S&P/NZX 50 Index traded steadily and closed at 13,467.29, a gain of 45.77 points or 0.34%. There were 59 gainers and 74 decliners on the main board, with 35.2 million shares worth $171m changing hands.
Fisher & Paykel Healthcare led the way by reaching an all-time high after gaining 27c to $40.02 on trade worth $35.86m. '
NZ’s unemployment rate rose to a 10-year high of 5.4% in the December quarter, with economists and the Reserve Bank of NZ (RBNZ) expecting the rate to stay steady at 5.3%. ANZ Research said the underlying details showed the labour market is rounding a corner. Employment growth of 0.5% was stronger than expected, and shows firms are once again adding to headcount. The participation rate increased to 70.5% – also higher than expected – and is consistent with improving economic activity, bolstering perceptions that opportunities in the labour market are on the rise. For the RBNZ, the data indicates that the labour market is unlikely to become a source of consumers price index inflation pressure any time soon, ANZ said.
The market was also buoyed by the latest Global Dairy Trade auction, with prices increasing 6.7% across the board. Whole milk powder lifted 5.3% to US$3,614 (NZ$5,988) a metric tonne, and skim milk powder rising 10.6% to US$2,874.
The big tech stocks continued to be sold off in the United States and this spilled over to the local market yesterday. Gentrack fell 49c or 6.62% to a two-year low of $6.91; Serko was down 10c or 3.51% to $2.75; Eroad declined 11.5c or 10.04% to $1.03; Vista Group decreased 8c or 4.44% to $1.72; and Blackpearl Group shed 4c or 3.33% to $1.16.
Gentrack reassured the market about its pipeline of contracts pre-Christmas, but it hasn’t announced anything since.
Synlait Milk fell 11.5c or 18.11% to 52c after telling the market it is expecting a net loss of $77m-$82m for the six months ending January. Operating earnings (ebitda) are expected to be a loss of $28m-$33m. The company said an insurance claim has been accepted for losses arising from manufacturing challenges at its Dunsandel site in Canterbury. The challenges are largely resolved, and inventory is being rebuilt, though it continues to face costs and operational impacts.
Alongside Fisher and Paykel Healthcare, other stocks doing the heavy lifting were Auckland International Airport, gaining 8c to $8.36; Freightways increasing 28c or 1.99% to $14.38; and energy stocks Meridian up 9c to $5.71, Mercury adding 14c or 2.22% to $6.44, and Contact collecting 26c or 2.79% to $9.57. Heartland Group continued its improvement, up 4c or 3.23% to $1.28.
In the property sector, Investore, Kiwi Property, and Stride Property all increased by 2c to $1.11, $1.01, and $1.26, respectively. Mainfreight had one of its biggest one-day falls, down $2.04 or 3.13% top $63.11; Turners Automotive was down 13c to $8.32; Ryman Healthcare declined 7c or 2.53% to $2.70; and a2 Milk shed 12c to $10. SkyCity was down 1.5c to 89c; Channel Infrastructure decreased 8c or 2.78% to $2.80; Briscoe Group eased 8c to $5; Napier Port declined 10c or 2.69% to $3.62, and Winton Land declined 6.5c or 3.16% to $1.99.
The Warehouse Group, up 0.005c to 73.5c, announced “a new, leaner operating structure for its head office” that will result in the loss of 270 jobs. The retailer is increasing its co-sourcing partnership with Tata Consultancy Services, which will provide technology, accounting, call centre and payroll support. The Warehouse said the restructuring will likely create annualised savings of $17m by the 2031 financial year and over the initial five-year term, with Tata savings of $70m.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 50 points lower at 8889.
- close [Morningstar with AAP]: Australia's share market has shrugged off a morning slump to charge higher by the close, buoyed by strength in large cap miners, banks and energy stocks.
The S&P/ASX200 gained 70.7 points on Wednesday, up 0.8 per cent, to 8,927.8, as the broader All Ordinaries rose 55.3 points, or 0.6 per cent, to 9,204.6.
Basic materials and energy stocks each gained more than three per cent, while the heavyweight financials sector rose one per cent, with buying squarely focused on major companies.
"That does lend itself to the idea it could be international buying, and it possibly is based on the idea that the outlook for the Australian dollar is now positive," Moomoo market strategist Michael McCarthy told AAP.
"And with Aussie rates going up yesterday, and rates around the rest of world might be going down, it's very likely some global investors come to the view the Aussie's likely to head higher, and they want to be invested in Australian shares for that reason."
BHP surged more than four per cent to overtake Commonwealth Bank as Australia's biggest company, the miner's now-$266 billion market outstripping CBA by almost $3.3 billion.
Australia's largest bank didn't have a bad day either, its shares rising 2.6 per cent to $157.06 to four-week highs, and was the best of the big four on Wednesday.
The raw materials sector led four of 11 local segments higher, with gold miners rallying for a second day as the precious metal stabilised after Friday's dramatic sell-off.
Spot gold reclaimed the $US5,000 an ounce level to trade hands at $US5,079 ($A7,225) an ounce, supporting names like Newmont (+4.3 per cent), Evolution (+3.9 per cent) and Northern Star (+6.2 per cent).
Lynas Rare Earths rallied for a second day after the US announced plans for a critical minerals stockpile to relieve dependence on China, which accounts for roughly 90 per cent of world rare earths elements production.
Energy stocks rallied more than three per cent, tracking with similar gains in its segment giants Woodside and Santos, while coal producers and uranium stocks also lifted.
Further aligning with the big money moving to large caps thesis was blood plasma giant CSL, which jumped more than two per cent in its best performance in nearly two months.
In company news, Amcor share jumped more than three per cent to a six-month high after reaffirming 2026 guidance, following a revenue spike and a new deal in the weight-loss space.
Synlait Milk shares plummeted 13.4 per cent after flagging a first-half loss of up to $NZ82 million ($A71 million), impacted by manufacturing challenges and operating costs.
The Aussie dollar is buying 70.29 US cents, up from 70.07 US cents on Tuesday at 5pm, the local currency supported by the interest rate hike and a positive global economic outlook.
ON THE ASX:
The S&P/ASX200 gained 70.7 points, or 0.8 per cent, to 8,927.8
The broader All Ordinaries fell 55.3 points, or 0.6 per cent, to 9,204.6
The NZX 50 Lost -50.76 points (-0.38%) to 13416.53
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended mixed. The DJIA added 0.5% to 49,501.30, the S&P 500 declined 0.5% to 6,882.72 and the Nasdaq fell 1.5% to 22,904.58.
Among S&P 500 companies, the top three gainers were Super Micro Computer Inc SMCI surging 13.79%, Fortive Corp FTV jumped 10.63%, and Eli Lilly and Co LLY lifted 10.33%.
The biggest decliners were Boston Scientific Corp BSX which dropped 17.59%, Advanced Micro Devices Inc AMD fell 17.31%, and AppLovin Corp APP lost 16.11%.
Asia
Chinese shares closed higher. The benchmark Shanghai Composite Index gained 0.8% to 4,102.20 and the Shenzhen Composite Index rose 0.3% to 2,685.46.
Hong Kong shares ended flat. The benchmark Hang Seng Index was unchanged at 26,847.32.
Japanese shares ended lower. The Nikkei Stock Average dropped 0.8% to 54,293.36.
India shares ended higher. The BSE SENSEX lifted 0.1% to 83,817.69.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index gained 0.9% to 10,402.34. In Europe, shares closed mixed. The Germany's DAX fell 0.7% to 24,603.04, and the France's CAC 40 rose 1% to 8,262.16
