Busy day on sharemarket; Good weekly end

The New Zealand sharemarket soon got over the shock of the worse-than-expected gross domestic product data with a rise of more than 1% – on a day dominated by index changes and late heavy trading.

Friday, December 20th 2024, 7:02PM

by BusinessDesk

The S&P/NZX 50 Index was in and out of positive territory before the late surge and closed at 12,904.11, up 149.96 points or 1.18%.

The index finished the turbulent week with a gain of nearly 1.2% and is now 9.6% ahead for the year.

'A little choppy'

Trading was extended for the quarterly rebalance of the NZX, ASX and FTSE Russell indices, and 74.56 million shares worth $344.39 changed hands – with Spark, up 2c to $2.83 on trade worth $36.58m, being removed from the ASX 200.

Shane Solly, portfolio manager with Harbour Asset Management, said: “The market was a little choppy, but there was also some relief that the US markets weren’t weaker after a healthy correction the day before.

“The GDP data showed things are pretty tough, and the (economic) recovery will be slower than the market wanted," Solly said. “We are seeing improved business and consumer confidence, but it will be a bit longer for the green shoots to turn into hay.”

Energy

Meridian Energy rose 30c or 5.38% to $5.88 on trade worth $20m; Ebos Group was up 24c to $36.60; Infratil increased 58c or 4.79% to $12.70 on trade worth $34.8m; Auckland International Airport added 16c or 1.97% to $8.30 on trade worth $70.6m; and Contact Energy was down 22c or 2.44% to $8.78.

The weightings of these stocks were increased on the ASX 200 Index and, in the airport’s case, on the NZX 50.

Meridian told the market it had formed a joint venture with Nova Energy to build and operate the $660m Te Rahui solar farm at Rangitaiki near Taupo. The construction will take place in two stages, and the total 400MW of electricity generation will power 100,000 homes.

Ebos welcomed the First Pharmaceutical Wholesaler Agreement, in which the Australian government will fund wholesalers that are part of the Community Service Obligation until Dec 31, 2029.

Ebos said the agreement will provide a modest funding increase from the 2025 financial year and a further rise from the 2027 financial year. Ebos confirmed its full-year operating earnings (ebitda) guidance of $575m-$600m.

Summerset was up 22c or 1.75% to $12.82; Port of Tauranga gained 29c or 4.57% to $6.64; Vista Group increased 10c or 3.33% to $3.10; Genesis Energy added 8c or 3.65% to $2.27; Vector collected 9c or 2.33% to $3.95; and Chorus was up 21c or 2.38% to $9.03.

Other stocks

In the retail sector, Hallenstein Glasson climbed a further 25c or 3.11% to $8.30, and Michael Hill declined 3c or 4.62% to 62c.

Gentrack declined 35c or 2.66% to $12.80; a2 Milk shed 18c or 2.8% to $6.25; Scales Corp fell 18c or 4.5% to $3.82; Napier Port decreased 6c or 2.31% to $2.54; and Channel Infrastructure was 6c or 3.13% to $1.86.

Leading banks ANZ declined $2.08 or 6.48% to $30.01, and Westpac was down 83c or 2.33% to $34.77.

In the property sector, Vital Healthcare Trust increased 7c or 3.95% to $1.84; Property for Industry gained 4.5c or 2.11% to $2.18; and Argosy Property was down 3c or 2.94% to 99c.

Ventia Services, unchanged at $3.80, has signed a new five-year agreement worth more than $400m in annual revenue to design, construct and maintain Telstra’s critical digital infrastructure in Australia.

WasteCo, up 0.001c or 3.7% to 2.8c, has completed the purchase of Hamilton-based Civic Waste, which will contribute $20m in revenue over the next 12 months.

WasteCo issued a $15m convertible note to Empire Waste Technology, owned by Simon and Paul Herbert, to help fund the purchase. Empire has the option to convert the note into equity at 2c a share over the next five years.

Rua Bioscience, down 0.001c or 2.94% to 3.3c, has launched three medicinal cannabis products in the United Kingdom through distributor Target Healthcare.

Marlborough Wine Estates, last traded at 6c, will delist from the NZX on Jan 6, and the last day of trading is Dec 31.

Tags: Market Close