NZ Sharemarket Remains Flat For Second Day

Mercury Energy increased its earnings forecast, and Ebos Group downgraded theirs as the New Zealand sharemarket traded flat for the second day running. The S&P/NZX 50 Index did improve in the afternoon and closed at 12,945.6, up 13.27 points or 0.10% after reaching an intraday low of 12,850.39. There were 65 gainers and 73 decliners on the main board, and trading was lighter with 27.9 million shares worth $110.1m changing hands.

The Brent Crude oil price crept up to US$97.55 (NZ$164.87) a barrel.  At home, Mercury Energy gained 12c or 1.85% to $6.60 after upgrading its full-year operating earnings (ebitda) guidance to $1.05 billion, from $1b, because of higher forecast renewable generation from hydro and new projects. Mercury reported a trading margin of $325m in the March quarter, up 27% on the previous corresponding period. Generation volume increased 286GWh to 1997GWh, and for the year to date, it is up 824GWh to 6726GWh. Elsewhere in the energy sector, Meridian was up 10c or 1.79% to $5.69; Contact gained 9c to $9.39; and Genesis added 2c to $2.29.

Ebos Group declined 75c or 3.37% to a seven-year low of $21.50 after downgrading its full-year operating earnings (ebitda) guidance to $610m-$620m, from $615m-$635, because of the fuel crisis. Ebos told the market that the downgrade reflected additional transport and distribution costs of $5-$10m, absorbed by the group to maintain service continuity, rather than a change in underlying demand or long-term earnings. The company is talking with relevant stakeholders, including the Australian Government, about fuel cost recovery, Ebos said.

Market leader Fisher and Paykel Healthcare was down 57c to $37.35; Channel Infrastructure declined 5c to $2.91; and Spark decreased 4c or 1.9% to $2.07. Fletcher Building shed 6c or 2.08% to $2.82; Blackpearl Group fell 8c or 8.25% to 89c; and Pacific Edge decreased 0.006c or 3.47% to 16.7c. Transport and logistics stocks Freightways rose 50c or 4.13% to $12.60, and Mainfreight was up $1.10 or 1.86% to $60.30. Infratil gained 13c to $12.46; Napier Port increased 12c or 3.46% to $3.59; Rua Gold gained 4c or 2.21% to $1.85; and Vista Group added 4c or 2.21% to $1.85.

KMD Brands, down 0.003c or 4.48% to 6.4c, completed its shortfall bookbuild from its retail rights offer, with 126.4m new shares taken up at 6c a share. A further 42.9m shares were allocated to sub-underwriters. KMD raised $65.3m including the earlier placement and institutional rights offer and will be used to reduce debt.

NZME, up 1c to $1.10, told shareholders at the annual meeting that advertising revenue was tracking at 3% growth for the first four months of this year, while OneRoof’s growth may be moderated in the near term, given the softer property market, inflationary pressures and the potential for higher interest rates.

Air NZ, down 0.005c to 44.5c, announced that its chief financial officer, Richard Thomson, who has held the role for five years, has resigned and will leave at the end of August. NZX, unchanged at $1.40, announced Graham Law, who has been with the exchange since November 2017, as the acting chief executive to replace Mark Peterson. Recruitment firm Accordant Group, up 0.005c or 3.57% to 14.5c, has opened its rights offer of up to $6.7m at 15c a new share.

Source: Business Desk

Ahead of the local open SPI futures were 39 points lower at 8813.

- close [Morningstar with AAP]: The local share market has suffered its worst loss in more than a month on fears the Middle East conflict could delay US interest rate cuts, even after President Donald Trump extended a ceasefire with Iran at the request of Pakistani mediators.

The benchmark S&P/ASX200 index on Wednesday fell 105.8 points, or 1.2 per cent, to 8,843.6, its worst single-day loss since a 142-point fall on March 19.

The broader All Ordinaries dropped 102.8 points, or 1.12 per cent, to 9,074.3.

Overnight, Mr Trump said in a social media post he was extending the two-week ceasefire that had been about to expire, although negotiators in Tehran said they wouldn't attend talks with the US, calling them a waste of time.

Also in Washington, Mr Trump's pick to chair the US Federal Reserve struck a hawkish stance during his Senate nomination hearing, reducing expectations the Fed would cut rates in 2026.

Kevin Warsh told the Senate Banking Committee that Mr Trump had never asked him to commit to interest rate cuts and fighting inflation would be his top priority.

Seven of the bourse's 11 sectors finished lower and four closed higher.

Health care was by far the biggest mover, falling 6.0 per cent on a huge plunge by Cochlear.

The hearing implant company dropped 40.7 per cent to a decade-low of $99.58 after cutting guidance, in part due to uncertainty and reduced consumer sentiment from the Middle East conflict.

Cochlear said it now expected to make a full-year profit of $290 million to $330 million, down from its original guidance of $435 million to $460 million.

Other health care names fell as well, with CSL retreating 5.7 per cent and Resmed subtracting 2.5 per cent.

In the financial sector, all of the big four banks similarly closed in the red.

CBA dropped 2.5 per cent to $175.04, NAB declined 2.4 per cent to $40.22, ANZ subtracted 2.3 per cent to $36.41 and Westpac lost 2.1 per cent to $39.40.

Also, Bank of Queensland slid 9.0 per cent to a three-month low of $6.61 after the regional lender announced a 20 per cent drop in first-half profit, while Generation Development Group dropped 22.6 per cent to an 18-month low of $3.56 on a quarterly update from the financial services company.

In the heavyweight mining sector, BHP grew 1.2 per cent to $56.17 after the Big Australian said its full-year copper production was now expected to be at the upper half of guidance.

Fortescue edged 0.1 per cent higher at $21.20, Rio Tinto dipped 0.5 per cent to $173.05 and South32 added 2.0 per cent to $4.50.

Goldminers were lower as the yellow metal changed hands at $US4,785 an ounce, down from about $4,800 on Tuesday.

Evolution dropped 2.9 per cent, Newmont fell 1.7 per cent and Northern Star retreated 3.6 per cent.

On the flip side, Treasury Wine Estate soared 16.5 per cent to a two-month high of $4.72 after the Penfolds owner said demand had picked up in China.

Corporate Travel Management, whose shares haven't traded since August, gave an update on its overcharging scandal involving the British government.

The amount involved had ballooned to $241 million and could involve faked documents, the company said.

The Australian dollar was trading for 71.73 US cents, from 71.63 US cents at 5pm on Tuesday.

ON THE ASX:

The S&P/ASX200 dropped 105.8 points, or 1.18 per cent, to 8,949.4.

The broader All Ordinaries lost 102.8 points, or 1.12 per cent, to 9,074.3.

The NZX 50 added 35.71 points (0.28%) to 12981.31

Companies Holding Annual General Meeting (ASX 300):

Woodside Energy Group Ltd

[Morningstar with Dow Jones]:

U.S. stocks ended higher. The DJIA lifted 0.7% to 49,490.03, the S&P 500 climbed 1% to 7,137.90 and the Nasdaq gained 1.6% to 24,657.57.

Among S&P 500 companies, the top three gainers were GE Vernova Inc GEV surging 13.49%, Masco Corp MAS jumped 10.59%, and Boston Scientific Corp BSX lifted 9.05%.

The biggest decliners were TE Connectivity PLC TEL which dropped 9.16%, Equifax Inc EFX fell 7.14%, and Fair Isaac Corp FICO lost 6.08%.

Asia

Chinese shares closed higher. The benchmark Shanghai Composite Index lifted 0.5% to 4,106.26 and the Shenzhen Composite Index added 1% to 2,789.00.

Hong Kong shares ended lower. The benchmark Hang Seng Index dropped 1.2% to 26,163.24.

Japanese shares ended higher. The Nikkei Stock Average added 0.4% to 59,585.86.

India shares ended lower. The BSE SENSEX declined 1% to 78,516.49.

Europe

Stocks in the U.K. finished lower. The FTSE 100 Index fell 0.2% to 10,476.46. In Europe, shares closed lower. The Germany's DAX slipped 0.3% to 24,194.90, and the France's CAC 40 declined 1% to 8,156.43