New Zealand’s S&P/NZX 50 index rose for a third week as earnings season accelerated, with the likes of Spark New Zealand and Ebos Group delivering results in line with expectations.

The benchmark index rose on Friday as Fisher & Paykel Healthcare raised its earnings guidance in a mixed day across Asia, with investors still digesting US Treasury secretary Scott Bessent’s intervention in bond markets and promise to use his bigger toolkit to keep long-dated yields in check.

South Port New Zealand delivered another record result, with a note of caution about the outlook, and Trade Window Holdings signalled plans to shift its primary listing to the ASX. 

And the public will have more time to make a submission on commerce minister Cameron Brewer’s capital market reforms, with the Ministry of Business, Innovation and Employment’s consultation open until Sept 15.

Marching higher

The NZX 50 rose 52.84 points, or 0.4%, to 13,927.66 on Friday, taking its weekly gain to 0.9%.

Spark surged 12% in its best week since August 2015, while Ebos advanced 7.2%, as both companies reported annual results in line with analysts’ forecasts, having fallen out of favour with investors due to missing expectations. Gentrack jumped 10% in the week, while Mercury NZ advanced 6.9%.

Turners Automotive Group sank 6.9% this week when it warned the Middle East conflict was squeezing margins, while the dual-listed banks were weaker, with ANZ Group Holdings down 5.8% and Westpac Banking Corp declining 5%.

Salt Funds Management managing director Matt Goodson said earnings season had been okay so far, as companies came to grips with a tougher June quarter when the Middle East conflict flared up again.

Stock markets across Asia were mixed on Friday, with Australia’s S&P/ASX 200 index down 0.3% in late trading and Japan’s Nikkei 225 dipped 0.4%, while South Korea’s Kospi gained 0.9% on expectations that Samsung Electronics planned to return up to 110 trillion won to shareholders.

There were 37 gainers on the NZX 50 on Friday, while 11 stocks declined and two were unchanged. The S&P/NZX 20 index futures contract for October rose 2% to 7,805, with 60 lots traded for a value of $468,000, while the NZX 20 gained 0.2% to 7,862.76.

Turnover across the main board was $117.7 million, of which F&P Healthcare accounted for $26.2 million as it gained 1.3% to $43.52.

The medical device maker touched an all-time high $43.74 during the session after it lifted its first-half and annual earnings guidance, with strong demand for its hospital products getting an extra tailwind from favourable currency movements and US tariff refunds.

Salt’s Goodson said stripping out the currency and tariff impact, the upgrade was about 3%-to-4% above the market consensus.

“It was an expected upgrade and the share price has been quite strong going into it,” he said.

A new cycle

Spark rose 0.9% to $2.17 on Friday, its fourth daily gain. Forsyth Barr analyst Ben Crozier lifted his target price on the telco by 5 cents to $2.35, and kept his ‘neutral’ rating on the stock, saying the company’s guidance for the current year was slightly above his expectations.

“While this result has potentially put an end to Spark’s downgrade cycle, the next key step to rebuilding investor confidence is reversing the negative connection trends in its high-margin mobile and fixed wireless business,” Crozier said in a note to clients.

Meridian Energy was among the main tailwinds for the NZX 50 on Friday, rising 0.9% to $5.60, while Contact Energy advanced 1.4% to $9.02.

Vista Group International posted the biggest gain on the NZX 50, up 3.4% at $2.75.

Meanwhile, Ebos fell 2.2% to $22.75 in the biggest decline for the benchmark, giving back some of its gains after its annual report on Wednesday.

“The result was in line with expectations with a big move on Wednesday on relief there wasn’t a downgrade,” Salt’s Goodson said.

Outside the benchmark index, Trade Window Holdings jumped 7.1%, or 1 cent, to 15 cents after the cross-border software developer said it planned to shift its primary listing to the ASX, and appointed Australia-based Susan Beling and Brodie Collins to support the move.

South Port New Zealand dipped 1.1% to $8.80 after the country’s southernmost maritime hub said it was wary of potential downside risk in the coming year, having reported a 21% lift in annual profit to a record $16.1 million, with a 3.6% lift in the full-year dividend to 29 cents per share.

General Capital rose 2%, or 0.5 of a cent, to 26 cents after chief executive Brent King wasn’t re-elected to the board at yesterday’s annual meeting. King told the National Business Review that he would keep running the General Finance subsidiary.

The kiwi dollar traded at 59.64 US cents at 5pm in Auckland from 59.51 cents yesterday, while the yield on 10-year New Zealand government bonds rose 6 basis points to 4.75%.

Statistics New Zealand figures today showed the annual merchandise trade deficit widened to $5.2 billion in July from $4.2 billion a year earlier, with more expensive fuel driving up the value of imports faster than the value of exports.

Meanwhile, Reserve Bank data showed spending on credit cards rose in July, while outstanding balances at the end of the month shrank from the prior year. Separately, the central bank’s business expectations survey showed inflation expectations eased.

Reporting by Paul McBeth.