Sanford pushes near a five-and-a-half year high.
New Zealand’s S&P/NZX 50 index dipped in a muted day across Asia, as investors await Nvidia’s quarterly earnings to get a better insight into the burgeoning artificial intelligence industry.
Index heavyweights were broadly weaker, with Contact Energy, Infratil and Mainfreight on the red side of the ledger, while Fisher & Paykel Healthcare nudged higher.
Serko gave back some of Tuesday’s strong gain to post the biggest decline on the bourse today, while Sanford carried on its winning ways to push near a five-and-a-half-year high.
And Comvita snapped a six-day decline after its notice of meeting showed co-founder Alan Bougen has put forward Greg Barclay as a director to be voted on at next month’s annual meeting.
The NZX50 declined 15.29 points, or 0.1%, to 13,326.9, with 25 stocks falling, 23 gaining and two unchanged. Turnover across the main board was $121 million, of which Fisher & Paykel Healthcare accounted for $18.9 million as it rose 0.4% to $36.78.
The kiwi dollar fell to 56.29 US cents at 5pm in Auckland from 56.48 cents.
Stock markets across Asia were generally softer, with Australia’s S&P/ASX 200 index down 0.2% in late trading, while Japan’s Nikkei 225 and Singapore’s Straits Times Index were fractionally weaker, following a soft lead from Wall Street as investors await Nvidia’s quarterly earnings when trading closes on Wednesday in New York.
“With sentiment where it is, even a strong result may or may not be rewarded,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene. “It’s going to be a mindboggling number, as always, but it’s going to need to be particularly strong to turn sentiment around at this stage.”
Serko led the benchmark index lower, falling 3.9% to $2.45 and giving back Tuesday’s gain when it reported a stronger first-half result than anticipated. Vista Group International was down 1.2% at $2.53, while Gentrack gained 0.9% to $7.54.
Among blue chips weighing on the index, Contact Energy fell 1.8% to $9.30, Mainfreight slipped 1.3% to $66.50 and Infratil declined 0.4% to $11.55.
NZX slipped 1.3% to $1.56 after the Australian Financial Review reported the stock market operator has emerged as a potential bidder for Cboe Australia, a smaller rival to the dominant ASX.
Fonterra Shareholders’ Fund units declined 0.1% to $7.92 after milk powder prices fell at the latest Global Dairy Trade auction.
Sanford posted the biggest gain on the day, up 6% at $6.85, its highest level since June 2020 and extending its gain from yesterday when the fishing group reported record earnings.
KMD Brands climbed 5.5% to 29 cents after the retailer said first-quarter group sales rose 7.9% on skinnier margins as the company cleared older stock to improve its balance sheet, and chair David Kirk told shareholders at today’s annual meeting that the company remains materially undervalued.
Napier Port gained 2.6% to $3.51 after the port operator lifted annual earnings 24% and forecast more growth in the coming year. The company’s board declared a final dividend of 8 cents per share, taking the annual payment to 14.5 cents, up from 9 cents a year earlier. Port of Tauranga was up 2% at $7.60.
Argosy Property rose 1.2% to $1.25 after the commercial landlord lifted first-half adjusted funds from operations 10% and affirmed annual dividend guidance at 6.65 cents per share, saying the property sector is showing signs of increased momentum.
Outside the benchmark index, Asset Plus fell 2.3% to 21 cents after returning to positive funds from operations in the six months ended Sept 30.
Comvita climbed 5.2% to 50.5 cents, snapping a six-day decline, after the honey products company’s notice of meeting showed co-founder Alan Bougen nominated Greg Barclay, who recently was appointed a director at Rakon, to join the company’s board at next month’s annual meeting. Rakon slipped 2% to 74.5 cents.
Radius Residential Care rose 6.7% to 40 cents after the aged care operator almost doubled first-half available funds from operations and hiked its interim dividend 54% to 1 cent per share.
Would-be gold miner Uvre rose 2.2% to 23 cents after being granted a prospecting permit for the Invincible project in Otago.
Meanwhile, New Talisman Gold Mines dropped 23%, or 1.2 cents, to 4 cents after saying its first modest shipment of gold concentrate is ready, and that current grades have been below expectations so far.
Reporting by Paul McBeth.
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