Fonterra’s farmers backed their $3.2 billion payday.
Freightways hit an all-time high of $14.40 today.
Freightways led New Zealand’s S&P/NZX 50 index higher as the courier company declared the domestic economy is no longer a headwind, while ANZ’s latest business outlook showed firms are casting off their gloomy dispositions.
Fonterra Shareholders’ Fund units advanced after the cooperative’s farmer shareholders voted in favour of selling the Mainland consumer business for $4.22 billion, with a $3.2 billion capital return on the cards and helping propel rural services firm PGG Wrightson higher.
Meanwhile, stock markets across Asia were mixed as investors digest Federal Reserve chair Jerome Powell’s message that another rate cut in the US wasn’t a done deal, the Bank of Japan kept its key rate unchanged, and presidents Donald Trump and Xi Jinping held their first-face-to-face meeting in six years to find common ground between the US and China.
And Mexico’s Finaccess is a hair’s breadth away from taking over Restaurant Brands NZ, with 89.2% acceptances since it lodged its $5.05 per share offer.
The NZX50 rose 50.08 points, or 0.4%, to 13,459.29 today, with 20 stocks gaining, 21 declining, and nine unchanged. Turnover across the main board was $115 million, of which Infratil accounted for $12.8 million as it dipped 0.3% to $12.31.
Freightways hit an all-time high of $14.40 as it led the benchmark higher, rising 4.2% to end the day at $14.30.
The courier operator told shareholders at today’s annual meeting that first-quarter revenue and profit rose, with chief executive Mark Troughear saying New Zealand’s economy is no longer a headwind.
His comments echoed that of Move Logistics at its annual meeting, with the trucking firm ending the day unchanged at 20 cents. Meanwhile, the latest ANZ business outlook survey showed firms are growing more optimistic about their own activity and the economy more broadly, with retailers leading the reviving confidence.
“It was a pretty good update from Freightways, suggesting that the headwinds may have dissipated and things are starting to feel a little better out there,” said Grant Davies, an investment adviser at Hamilton Hindin Greene. “Most people would be hoping that’s true.”
Meanwhile, Fonterra Shareholders’ Fund units gained 0.7% to $8.17 after the cooperative’s farmer shareholders voted in favour of selling the Mainland consumer business to France’s Lactalis for $4.22 billion. The dairy exporter expects to return $3.2 billion of that to its owners through a $2 per share buyback.
Rural services firm PGG Wrightson climbed 5.5% to $2.29, while rural landlord NZ Rural Land Co slipped 1.8% to $1.11 and Allied Farmers was unchanged at 79.5 cents.
Markets across Asia were mixed, with Australia’s S&P/ASX 200 index down 0.4% in late trading as US Federal Reserve chair Jerome Powell’s comments that another rate cut later this year isn’t a foregone conclusion added another complication to the Lucky Country, where faster-than-expected inflation pared back expectations for the Reserve Bank to cut interest rates next week.
The kiwi dollar traded at 57.77 US cents at 5pm in Auckland from 57.85 cents yesterday, and was unchanged at 87.65 Australian cents. It rose to 88.40 yen from 87.98 yen after the Bank of Japan kept its uncollateralised overnight call rate at 0.5%, and was little changed at 49.73 euro cents from 49.74 cents yesterday ahead of the European Central Bank's review, which is expected to keep its benchmark rate unchanged.
Meanwhile, Japan’s Nikkei 225 rose 0.6% and Hong Kong’s Hang Seng was up 0.5% as investors await more details about the meeting between US President Donald Trump and his Chinese counterpart Xi Jinping, with hopes of a truce breaking out between the jostling superpowers.
New Zealand’s more trade-exposed firms were broadly stronger, with Fisher & Paykel Healthcare advancing 0.9% to $36.45 and Mainfreight up 1.8% at $60.24, while Port of Tauranga increased 0.3% to $7.83.
The NZX’s tech companies were broadly stronger as Google-parent Alphabet, Microsoft and Samsung Electronics beat analysts’ earnings, while Meta Platforms fell short of expectations. Serko rose 1.5% to $2.78, Gentrack was up 1.2% at $9.22 and Vista Group International gained 1.1% to $2.73. Outside the NZX50, ikeGPS jumped 8.8% to $1.175, Black Pearl Group rose 0.7% to $1.128 while Eroad dropped 4.2% to $2.05.
KMD Brands posted the biggest decline on the NZX50, falling 1.7% to 29 cents, while national carrier Air New Zealand was also down 1.7% at 59 cents.
Vector slipped 0.6% to $4.95 after The Australian reported the lines company has started a sales process for its fibre assets which have been the subject of a strategic review. The company said it wouldn’t comment on speculation.
Spark New Zealand was the most heavily traded stock on the day with a volume of 3 million shares, ending the session unchanged at $2.41.
Restaurant Brands NZ was unchanged at $5.04, with Finaccess creeping closer to the 90% threshold needed to mop up the remaining shareholders its in its $5.05 per share takeover offer, with 89.2%.
Reporting by Paul McBeth.
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