NZ market steady as company's report weaker profits

The New Zealand market ended the day almost flat after a flurry of half-year results showed weaker profits, the day after the Reserve Bank of NZ warned a recession was on the way.

Thursday, November 24th 2022, 6:06PM

by BusinessDesk

The S&P/NZX 50 index decreased 2.08 points, or 0.02%, to 11,321 points.

Across the main board, shares 52 rose and 76 fell. Turnover was $120.9 million.

AFT Pharmaceuticals led the entire main board down, as it fell by 9.7% to $3.60 after it announced its first-half net profit had fallen by 66% despite a more than 18% jump in revenue.

Rakon, which reported a half-year profit of $16m, down 15% on the same period last year, fell by 7% to $1.19.

Despite reporting a higher net rental income of $34.1m, up 11% on last year, Stride Property Group led the top 50 lower, down by 3.7% to $1.55.

Peter McIntyre from Craigs Investment Partners said the real estate sector was down about 2% across the board today following yesterday’s 75 basis point cash rate hike by the RBNZ.

He said the sector faced the harsh reality of higher interest rates for a longer period than what had been initially expected.

Argosy Property ended the day down by 2.4% to $1.18. Summerset Group dropped 2.1% to $8.72.

Pacific Edge said it had widened its loss to $10.6m while increasing operating revenue by 62% to $8.7m. Its share price fell by 3% to 48c.

McIntyre said investors were holding off the company’s stocks until issues around revenue in the United States were sorted.

It would be important for Pacific Edge to also work on its cash burn rate as it spends more on operating expenditure, he said.

Sky Network Television fell 3.8% to $2.24. As did, Vector down 2.3% to $4.10.

The top 50 was led higher by Meridian Energy, which was up 1.9% to $4.75.

Blis Technologies led the entire board higher up 3.5% to 29c.

Allied Farmers was up 2.8% to 72c following its virtual annual meeting, where chair Chris Swasbrook said the company would exercise its call option to acquire the remaining 50% of NZ Rural Land Management it didn’t already own.

Napier Port increased by 2.1% to $2.80. Millennium and Copthorne Hotels was also up by 2.7% to $1.90.

Synlait Milk was up 1.7% to $2.85. Mainfreight also ended the day up 1.7% to $2.85.

The NZ dollar further extended its rally trading at 62.5 US cents at 3pm in Wellington, up from 61.6 cents yesterday.

The trade-weighted index was at 72.81 up from 72.16 at the end of last week.

Currency trader OFX wrote this morning the Kiwi dollar had been able to extend back beyond US 62c amid broader USD weakness and a hawkish RBNZ surprise.

Tags: Market Close