NZ sharemarket adrift and directionless

The New Zealand sharemarket continued to drift on light trading as the latest earnings results failed to inspire investors.

Thursday, November 23rd 2023, 6:17PM

by BusinessDesk

In another topsy-turvy day, the S&P/NZX 50 Index had a late surge and closed at 11,187.52.5, up 17.72 points or 0.16%, following an intraday low of 11,133.8.

There were 69 gainers and 60 decliners on the main board, with 25.36 million shares worth $88.74m changing hands.

In the United States, the major indices resumed their climb, with the Dow Jones Industrial Average up 0.53% to 35,273.03 points; the S&P 500 gained 0.41% to 4556.62; and the Nasdaq Composite increasing 0.46% to 14,265.86 on the day before the Thanksgiving holiday.

The Nasdaq has rallied 11% in November, the Dow Jones nearly 7%, and the S&P 500 is up more than 8% as bond yields have fallen and optimism that the Federal Reserve will maintain a hold on interest rates.

Paul Robertshawe, chief investment officer with Octagon Asset Management, said the local market remained directionless, and the latest financial results were nothing to write home about.

“Fisher and Paykel Healthcare, Ryman Healthcare and Arvida Group are reporting next week, and they will be closely followed, especially whether the softer trend in the retirement village stocks continues,” he said.

Mercury Energy increased 9c to $6.16; Vector was up 6c to $3.74; Port of Tauranga gained 12c or 2.26% to $5.43; Napier Port added 4c to $2.39; and Restaurant Brands rose 17c or 4.83% to $3.69.

Among retailers, Briscoe Group was up 10c or 2.21% to $4.62, and KMD Brands gained 2c or 2.53% to 81c. Smartpay Holdings gained 6.5c or 4.55% to $1.495.

Ebos Group declined 74c or 2.05% to $35.41, and Infratil decreased 10c to $9.96.

AFT Pharmaceuticals gained 7c or 2.13% to $3.35 on a strong half-year result, with revenue increasing 27% to $83.6m and net profit rising 17% to $1.8m. AFT’s operating profit was down 6% to $3.3m, and is expecting a full-year profit of $22m-$24m.

Goodman Property Trust was up 1.5c to $2.145 after increasing revenue by 14.2% to $119.5 for the six months ending September. Still, it suffered a net loss of $163.2m, mainly because of a $226.5m reduction in the value of its $4.7 billion portfolio. Operating earnings were $61.3m, up 12.3%, and Goodman has a 100% occupancy rate.

Advanced manufacturer Rakon fell 5c or 7.25% to 64c after reporting a 30% decline in revenue to $61.25m and a 97% decrease in net profit to $499,000 for the six months ending September.

Revenue for Rakon’s biggest market, telecommunications, fell to $34.2m from $47.5m in the previous corresponding period as customers worked through their stockpile and mobile network operators deferred some 5G capital expenditure.

Pacific Edge, down 0.002c or 1.94% to 10.1c, reported a 22% increase in half-revenue to $16.6m despite the uncertainty of Medicare funding in the United States. There was a net loss of $15.1m, up from $10.2m.

Commercial Cxbladder test volumes rose 28% in the US, and ordering clinicians there reached 1147, up 17.3% from the end of the second quarter. The total laboratory throughput of the tests increased to 15,401.

Meal kit company My Food Bag, down 0.004c or 2.99% to 13c, continues to founder with half-year revenue declining 11.2% to $83.83m and net profit falling 57.4% to $2.5m. My Food Bag customers total 61,600, up from 57,500 at the end of the 2023 financial year.

Insurer Tower, down 0.005c to 61.5c, told the market that gross written premiums were up 17% to $527m for the year ending September, underlying profit was $7.6m from the previous $27.3m, and the bottom line was a loss of $1.2m compared with a net profit of $18.9m last year.

Tags: Market Close