NZ market enjoys positive bounce amidst volatile day
New Zealand’s benchmark index brightened up on Tuesday, thanks to international tailwinds pushing the NZ market higher after a volatile day of trading.
Tuesday, October 10th 2023, 6:20PM
by BusinessDesk
The S&P/NZX 50 Index rose 88.3 points, or 0.8%, to 11,293.38. Turnover was $81.8 million. There were 77 gainers and 48 decliners on the main board.
Hamilton Hindin Greene’s Grant Davies said it had been a volatile day for NZ’s market thanks to flow-through from US markets which defied predictions and turned positive overnight while the Australian market also headed into positive territory.
“New Zealand investors are still a little bit cautious, but the international funds coming in have helped propel our market today,” he said.
Turners Automotive Group told the NZX on Tuesday that the company was heading for a record half-year result for the six months to Sep 30, and was predicting profit before tax of “at least” $25m.
The company credited its successful ‘Tina from Turners’ ad campaign in helping the group lift its vehicle sales and get it closer to its goal of getting onto the NZX50. Turners edged up over 8% earlier on in the day but ended Tuesday up 23 cents or 6% to $4.07.
Arvida Group revealed that sales volumes were up 6% year-on-year in the first half, and "green shoots" in the housing market may herald a further uplift in the retirement village company’s second half.
Chief executive Jeremy Nicoll said a total of 285 sales of occupation rights – new and resale – settled in the six months ended Sept 30.
“This was 6% up on last year’s volume for the corresponding six months, reflecting a good second quarter of resales.”
From 183 resales of occupation rights in the period, Arvida reported resale gains of $27m.
Arvida Group was down 1 cent or 0.8% to $1.23. Across other aged care stocks, Ryman Healthcare fell 12 cents or 2% to $5.93 while Oceania Healthcare rose 1 cent or 1.4% to 72 cents.
Summerset Holdings edged down 4 cents or 0.4% to $9.80 after it released its third-quarter sales for the period ending Sept 30.
Chief executive Scott Scoullar said sales were up 19% compared to the previous corresponding period in 2022 and 133 new sales and 127 resales in the latest quarter.
Dual-listed logistics company Freightways was down 12 cents or 1.5% to $8.13 and Mainfreight was up 86 cents or 1.4% to $63.66.
The freight company released its 2023 climate risks report today where the company said it acknowledged that where there were climate risks there were “financial risks but also practical opportunities”.
Fonterra Shareholders' Fund Units rose again for a second day, following Monday’s news that Fonterra was boosting its farmgate milk price forecast. The units were up 7 cents or 2.3% to $3.15.
Other gainers were tech firms Serko which was up 17 cents or 4.3% to $4.10 and Scott Technology which rose 13 cents or 4% to $3.40.
Ebos Group bounced up $1.01 or 3% to $35.21. The NZ dollar was trading at 60.29 US cents at 3pm in Wellington, up from 59.85 on Monday.
The trade-weighted index was at 71.48, from 71.09 on Monday.
BusinessDesk reported on Tuesday that the election uncertainty spelt short-term turbulence for the NZ dollar, with it falling 6% since the beginning of the year.
BNZ’s head of research Stephen Toplis said heightened uncertainty often meant bond markets sell-off and a weakening in the NZD – but this was likely to be a “short-lived” response.
| « NZ market in the red as election countdown begins | NZ market edges up while Fletcher Building goes into trading halt » |
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