Market Announcements
Market Summary
The New Zealand sharemarket, posting nearly 0.5%, joined the offshore rally as investors continued to pin their hopes on a peaceful settlement in the Middle East. The S&P/NZX 50 Index this time followed a strong day on Wall Street with a solid start and maintained the momentum – though at times trading was choppy – to close at 13,076.58, up 59.32 points or 0.46%. There were 83 gainers and 59 decliners on the main board, with turnover reaching 36.9 million shares worth $137.4m.
The major US indices were back at levels from six weeks ago, when the Middle East conflict broke out. And the oil price stayed lower, with Brent Crude trading at US$95.63 (NZ$162) a barrel, down from US$98.57 the day before.
The International Monetary Fund has forecast economic growth of 2.1% for NZ this year, compared with its previous forecast of 2.2%.
The leading energy stocks, sought after for their dividends, had a stronger day. Meridian increased 14c or 2.54% to $5.65; Mercury gained 13c or 1.97% to $6.73; and Contact gained 12c to $9.49. Fisher and Paykel Healthcare was up 44c to $38.49; Ebos Group rebounded 80c or 3.63% to $22.85; Air NZ increased 1.5c or 3.41% to 45.5c; My Food Bag gained 1.5c or 6.67% to 24c; and The Warehouse added 2c or 2.67% to 77c.
Ryman Healthcare increased 7c or 3.38% to $2.14 after reporting 331 sales of retirement living occupation right agreements for the three months ending March, including 81 new sales and 250 resales – up 10% on the previous corresponding period. Total sales for the 2026 financial year were 1,410 – 348 new and 1,062 resales – and Ryman said the net sales application exceeded turnover levels for the first time since the contract changes in late 2024.
Seeka added 8c to $5.15 after telling shareholders at the annual meeting that it expects to pack between 45 million and 47 million trays of kiwifruit this season, with 18 million already packed. Zespri is forecasting 220 million trays, with 83 million packed to date. Seeka said there was no damage to sites following Cyclone Vaianu, and the fuel situation was addressed by introducing a weekly fuel adjustment factor, paid to transport operators and passed back to growers.
Freightways was down 20c to $12.60; a2 Milk slid 15c to $9.40; Oceania Healthcare decreased 2.5c or 3.38% to 71.5c; and Green Cross Health declined 7.5c or 5% to $1.42. Napier Port shed 13c or 3.55% to $3.53; Vista Group fell 8.5c or 4.51% to $1.80; and Vulcan Steel declined 30c or 4.55% to $6.30.
Manuka honey supplier Comvita, down 1c to 67c, announced a $30m rights offer at 65c a share, backed by Singapore-listed Fraser and Neave, which will end with a significant shareholding and a director on the board. Fraser and Neave agreed to take up any shortfall in the rights offer and, if necessary, to accept a placement of new shares at 80c a share to take its shareholding to 19.9%. Comvita must raise at least $25m to complete a refinancing package with its banking syndicate, which includes a $20m working capital facility and a core debt facility of up to $30m, expiring in September 2028.
Scott Technology, unchanged at $2.50, reported a 5% increase in revenue to $128m and 4% gain in net profit to $4.49m for the six months ending February. Service fees of $43m now account for 33% of total revenue, and Scott is paying an interim dividend of 4c a share on May 21.
Channel Infrastructure, down 2c to $3, reported a 2% increase in total fuel throughput to 931m litres for the three months ending March, with jet fuel the highest since the fourth quarter in 2018, and up 6% year-on-year.
Chorus, up 2c to $9.43, said total fibre connections more than offset the decline in copper connections for the first time since the 2013 financial year. Total fibre connections at the end of March were 1.142m, and Chorus said the expected retirement date of the copper network was brought forward to 2028, from 2030.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 17 points lower at 8975.
- close [Morningstar with AAP]: Australia's share market has pared early gains for a relatively flat finish after hopes of easing US-Iran tensions came up against weakness in some of Australia's largest companies.
The S&P/ASX200 rose 7.9 points on Wednesday, up 0.09 per cent, to 8,978.7, as the broader All Ordinaries lifted 16 points, or 0.17 per cent, to 9,181.1.
The top 200 reached as high as 8,960.6 during the session, but sluggish performances from the big four banks, mega miners BHP and Rio Tinto, and Wesfarmers dragged on the bourse.
The retreat came despite optimism the Middle East conflict could soon end, as the International Monetary Fund warned the resulting energy shock could leave Australia with one of the highest inflation rates in the developed world.
The IMF also projecting national economic growth could plunge to 1.7 per cent in 2027 from 2.6 per cent in 2025.
Broadly though, traders were positioning for good news in the coming days and weeks.
"The key to all of this is we have had the market start to price-in the ultimate de-escalation, or the end to this conflict," IG market analyst Tony Sycamore said.
"That probably means for crude oil, that we settle somewhere in a level around $US85 to $US75 a barrel ... consolidating at a higher level until this supply disruption starts to work its way through the system."
Virgin Australia shares soared more than seven per cent after the airline maintained its 2026 guidance, thanks in part to its fuel-hedging program, as it flagged fewer services and higher airfares to soften the blow from sky-high jet fuel prices.
ASX-listed energy stocks tumbled almost two per cent as oil and gas giants Woodside and Santos, along with coal producers, lost ground.
Uranium stocks improved on the brighter outlook for the global economy, with Paladin Energy charging more than four per cent higher, although Boss Energy crumbled by more than nine per cent after disruptions weighed on production guidance.
Gold miners helped lift the heavyweight raw materials sector, which gained 0.7 per cent as the precious metal held its ground above $US4,813 ($A6,741) an ounce.
Evolution shone particularly brightly, up more than nine per cent and beating out the S&PASX200 after swinging its cash position $42 million into the black from a $362 debt in the previous quarter.
Banks weighed on the financial sector, with Westpac leading its big four competitors lower with a 1.9 per cent dive to $40.69, a day after flagging an earnings impact due to the energy crisis.
Investment management firms, Macquarie and major insurers were broadly positive.
IT stocks rebounded 2.4 per cent after months of selling, but the segment is still down more than 45 per cent from September's record highs.
The health care segment was also strong, helped by a nearly eight per cent boost in Mesoblast after it secured an exclusive global license to a patented chimeric antigen receptor (CAR) technology to bolster its existing medicines.
In other company news, Nufarm shares jumped more 11 per cent after foreshadowing a 17 per cent lift in first-half earnings to $244 million.
The Australian dollar is buying 71.38 US cents, up from 70.96 US cents on Tuesday at 5pm AEST.
ON THE ASX:
The S&P/ASX200 gained 7.9 points, or 0.09 per cent, to 8,978.7.
The broader All Ordinaries 16 points, or 0.17 per cent, to 9,181.1.
The NZX 50 added 11.31 points (0.09%) to 13087.89
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended mixed. The DJIA fell 0.1% to 48,463.72, the S&P 500 added 0.8% to 7,022.95 and the Nasdaq climbed 1.6% to 24,016.02.
Among S&P 500 companies, the top three gainers were Robinhood Markets Inc HOOD surging 10.41%, DoorDash Inc DASH jumped 10.02%, and Datadog Inc DDOG lifted 9.49%.
The biggest decliners were Carrier Global Corp CARR which dropped 9.43%, Stanley Black & Decker Inc SWK fell 6.95%, and Lennox International Inc LII lost 6.95%.
Asia
Chinese shares closed mixed. The benchmark Shanghai Composite Index was unchanged at 4,027.21 and the Shenzhen Composite Index slipped 0.7% to 2,685.30.
Hong Kong shares ended higher. The benchmark Hang Seng Index gained 0.3% to 25,947.32.
Japanese shares ended higher. The Nikkei Stock Average climbed 0.4% to 58,134.24.
India shares ended higher. The BSE SENSEX rose 1.6% to 78,111.24.
Europe
Stocks in the U.K. finished lower. The FTSE 100 Index declined 0.5% to 10,559.58. In Europe, shares closed mixed. The Germany's DAX rose 0.1% to 24,066.70, and the France's CAC 40 slipped 0.6% to 8,274.57
