Pacific Edge leads NZ shares higher

Pacific Edge led New Zealand's sharemarket higher on Wednesday after it reported volume numbers for its cancer test increased 32% on the same quarter last year.

Wednesday, July 20th 2022, 5:52PM

by BusinessDesk

The S&P/NZX 50 Index rose 36 points, or 0.3%, to 11,199.02. Turnover was $119 million.

Sharemarkets in the United States jumped overnight, likely encouraged by a wave of corporate earnings which mostly landed ahead of expectations.

“US stocks jumped amid optimism about the second quarter companies’ earnings, with all the three benchmark indices rising above the 50-day moving average for the first time since late April,” said CMC analyst Tina Teng.

BNZ strategist Nick Smyth said recession fears “certainly haven’t gone away” and the rebound in equity prices might reflect a bounce from extremely low levels.

Cancer test company Pacific Edge was the local index’s biggest gainer. It climbed 4.2% to 75 cents after announcing it processed over 7,000 tests in the quarter ended June.

That is 13% more than the previous quarter and a 32% increase on the June quarter last year. Pacific Edge said the increase reflects a growing awareness of the role its Cxbladder test can play in the diagnosis and monitoring of urothelial cancer.

Index heavyweight, Fisher & Paykel Healthcare also gained 2.4% at $20.91 climbing in sync with its Australian competitor, Resmed.

Genesis shares rose 0.9% to $2.84 after reporting it had added 3,400 new customers during the June quarter, partly thanks to its new brand Frank Energy.

Contact Energy shares were up 1.6% at $7.55 after it reported retail sales volumes were higher in June than in the previous month.

NZ Automotive Investments fell another 4.3% to 45 cents as co-founder and director David Sena pressed ahead with his attempt to take control of the company.

One of his candidates to replace the existing board withdrew his nomination today, leaving only the bare minimum of directors required under NZX listing rules – assuming both are voted onto the board in August.

Precinct Properties declined 4.3% to $1.35 and Eroad declined 2.8% to $2.09.

Rua Bioscience’s chief executive Rob Mitchell said he will step down from the role in September, after two and a half years in the job.

Shares in the medical marijuana company were up 1.7% at 30.5 cents at market close.

The NZ dollar was trading at 62.39 US cents up from 61.49 cents yesterday, and the trade-weighted index was at 71.1, from 70.38.

CMC’s Teng said commodity currencies had strengthened against the US dollar, with both Aussie and kiwi dollars jumping more than 1% to 3-week highs.

“The comeback of the broad commodity prices also supported the rebound in the strong regional currencies,” she said.

Cryptocurrencies also staged a small comeback: Bitcoin broke above US$23,000 (NZ$36,741) and Ethereum above US$1,500, both for the first time since early in June.

Tags: Market Close