Gentrack seeks to calm naysayers, clawing back some losses.
New Zealand’s S&P/NZX 50 index climbed for a second day, again powered by Infratil as the infrastructure investor’s major new contract for its CDC data centre unit caught a second wind of artificial intelligence optimism as chipmakers around the world were buoyed by Advanced Micro Devices strong quarterly result.
Gentrack led the benchmark higher, clawing back some of its steep losses this week after its senior leaders fronted investors to explain away the profit warning that wiped more than a third from the utilities software firm’s market value in a single session.
Comvita and Accordant Group both hit their minimum capital raising targets in their respective share sales to bolster their balance sheets, while Me Today advanced after raising its earnings guidance and Bremworth dipped on an extension to closing its proposed sale to Mohawk Industries.
And the New Zealand dollar nudged higher in the broadly upbeat mood through the Asia session, while the Organization for Economic Cooperation and Development delivered its biannual review of the nation’s economy, with a laundry of reliable recommendations to put the trajectory back on the straight and narrow.
The NZX50 rose 125.42 points, or 1%, to 13,270.61, with 31 stocks gaining, 10 declining, and nine unchanged. The S&P/NZX 20 index futures contract for June had its quietest day since launch, rising 0.8% to 7,562 with one lot traded for a value of almost $7,600. The NZX20 climbed 1% to 7,547.57.
Turnover across the main board was $225.3 million, of which Infratil accounted for $46.7 million as it climbed 4.1% to $15.14, adding to yesterday’s spike after its CDC unit revealed a multi-billion contract.
That got a second tailwind after AMD’s strong result in the US spurred a rally among chipmakers and semiconductor firms on Wall Street that carried on through to the Asian session.
Japan’s Nikkei 225 index surged 6.2% in late trading, while Australia’s S&P/ASX 200 index was up 0.8% in late trading and Hong Kong’s Hang Seng gained 1.6%.
“It’s a bit of a rarity – there’s not many stocks that I can name” locally that are linked to the AI theme, said Mark Lister, investment director at Craigs Investment Partners. “Infratil’s one of the few.”
The local index was buoyed by gains among other heavyweights, with Fisher & Paykel Healthcare nudging up 0.1% to $35.80, Auckland International Airport increasing 0.1% to $8.40, Contact Energy gaining 1.1% to $9.90 and Meridian Energy rising 0.7% to $5.95.
Gentrack posted the biggest gain on the day, up 7.3% to $3.95 after holding a briefing for investors and analysts to further explain the downgraded earnings and revenue outlook. The stock is down 34% so far this week.
Vista Group International rose 5.1% to $2.08, with healthy earnings from the studio divisions for Warner Bros Discovery and Walt Disney Co, while Sky Network Television declined 2.2% to $3.12. NZME slipped 0.5% to $1.105.
Briscoe Group increased 0.2% to $4.62 after noting the ongoing volatility facing retailers at today’s annual meeting.
Turners Automotive Group posted the steepest decline on the NZX, falling 3.4% to $8.90, while Tourism Holdings decreased 1.9% to $2.06 and NZX fell 1.4% to $1.38.
Heartland Group Holdings fell 1.3% to $1.125, with the Reserve Bank’s financial stability report yesterday pointing to the strong deposit and lending growth for finance companies under the depositor compensation scheme.
Outside the benchmark index, Me Today gained 2% to 5 cents after the company raised its revenue outlook and predicted a smaller loss.
Comvita rose 0.7% to $69 cents and Accordant was unchanged at 13.5 cents after the companies said they’d achieved the minimum levels of their respective capital raisings.
Meanwhile, Bremworth fell 2.8% to 70.5 cents after pushing out the deadline for its proposed sale to Mohawk Industries as it awaits the Commerce Commission’s review of the transaction.
The kiwi dollar edged up to 59.62 US cents at 5pm in Auckland from 59.46 cents yesterday in the broadly upbeat mood, as the US and Iran made tentative moves towards ending their conflict in the Middle East.
And the OECD’s latest two-yearly review into New Zealand’s economy delivered a familiar list of recommendations to policymakers on lifting the nation’s wealth, such as noting the structural fiscal deficit that needs addressing over the short-to-medium-term and the mounting bill of an ageing population.
Reporting by Paul McBeth.
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