NZ sharemarket ends first day of summer on a positive note

The New Zealand sharemarket finished the week on a positive note, though it didn’t get whipped up by the optimism and some new highs on Wall Street.

Friday, December 1st 2023, 6:18PM

by BusinessDesk

The S&P/NZX 50 Index closed at 11,367.51, up 37.31 points or 0.33%, after reaching an intraday low of 11,3207.05. The index gained 1.% for the week and is now down 1.1% for the year.

There were 69 gainers and 57 decliners over the whole market on light trading, with 20.74 million shares worth $77.67m changing hands.

It was a solid November for the NZ market, with the gross index rising 5.3% – but not quite as rousing as the United States.

The Dow Jones Industrial Average surged 520 points or 1.47% to a one-year high of 35,950,89 points. It climbed 8.9% in November – the best month this year.

The S&P 500 was down 0.38% to 4567.8 points but was also up 8.9% for November. The Nasdaq Composite increased 0.23% to 14,226.22 and up 10.7 for the month.

They were the best monthly performances since July last year. The US markets were spurred by a fall in the personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure.

The index was up 3.5% for the year ending October, down from 3.7% the month before and in line with expectations.

The falling inflation was another encouraging sign that the Fed may cut interest rates next year.

Shane Solly, portfolio manager with Harbour Asset Management, said the MSCI Global Index increased 9.4% in November – the biggest monthly move since the index began in 1970.

“The markets are looking reasonably positive, and locally, the post-results sentiment has improved. Many of the company results may have been conservative, but they weren’t outrightly negative,” Solly said.

“The market is forward-looking, and there is a bit of sunshine starting to peek through in the company outlook statements.”

Auckland International Airport, gaining an increased weighting in the MSCI index, led the market up with a 15c gain to $8.07. Fisher & Paykel Healthcare was up 25c to $23.81, and Ebos Group added 43c to $37.43.

Utilities software firm Gentrack crashed through the $6 mark after rising 39c or 6.72% to $6.19; Summerset Group added 9c to $9.40; Restaurant Brands increased 21c or 5.4% to $4.10; and SkyCity was up 4c or 2.16% to $1.89.

Sky TV increased 6c or 2.17% to $2.82; AFT Pharmaceuticals was up 6c or 1.82% to $3.36; Precinct Properties added 2.5c or 2.19% to $1.16; and Vital Healthcare Property Trust gained 4.5c or 2.19% to $2.10.

Synlait was up 3c or 2.33% to $1.32 on the day of its annual meeting. Synlait has increased its forecast milk price for the 2023/24 season to $7.25kgMS from $7 as dairy commodity prices recover.

Spark declined 8.5c to $5.10; NZME was down 4c or 4.49% to 85c; Move Logistics shed 3c or 5.17% to 55c; Oceania Healthcare decreased 2c or 2.7% to 72c; Michael Hill shed 2c or 2.77% to 86c; and The Warehouse gave up 4c or 2.2% to $1.78.

Cooks Coffee, unchanged at 16.2c, reported half-year operating revenue of $2.04m and a loss of $319,000. Cooks has 94 stores, mainly in the UK and Ireland. Its Triple Two business with 11 franchised stores was placed in voluntary administration in late October.

Software firm Blackpearl Group was up 2c or 4.08% to 51c following its half-year result that saw a sharp rise in revenue of $1.63m and a net loss of $2.21m. Annual recurring increased 221% to $4.6m.

Chatham Rock Phosphate, unchanged at 10c, has lodged its mining lease application for the Korella Mine with the Queensland Department of Resources. Chatham hopes to make its first phosphate sales in the third quarter of next year.

A rebalancing of the NZX50 announced today will see Gentrack and Turners Automotive Group added to the index from December 18, while Pacific Edge and Synlait will leave the top 50. This was expected by Forsyth Barr earlier this week.

Tags: Market Close