ANZ investors weren’t deterred by the bank missing earnings estimates.
New Zealand’s S&P/NZX 50 index joined a rally across Asia as investors welcomed the prospect of an end to the US federal government shutdown, with a group of eight Democrat senators breaking ranks to support a stopgap measure to end the record closure.
Gentrack and The a2 Milk Co were among the leaders on the local board after the utilities software developer and infant formula firm announced separate deals, while dual-listed lender ANZ Group Holdings shrugged off a decline in annual earnings to post its biggest daily gain in more than two months.
On the other side of the ledger, commercial landlords such Kiwi Property Group and Investore Property were broadly weaker as institutional investors sold down their holdings to participate in a $190 million discounted placement for Vital Healthcare Property Trust to bring its management inhouse.
And Comvita nudged higher ahead of its special meeting on Friday, after its biggest shareholder Li Wang urged her fellow owners to back the 80 cents per share offer by Mark Stewart’s Florenz entity.
The NZX50 rose 18.27 points, or 0.1%, to 13,617.48, with 24 gainers, 24 decliners and two stocks unchanged. Turnover was $116.5 million across the main board, with Fisher & Paykel Healthcare accounting for $19 million as it fell 1% to $38.12. Filings to the stock exchange today showed AustralianSuper lifted its stake in the medical device maker to 6% from 5% in its previous disclosure in July.
The local market joined a rally across Asia on optimism the record US federal government shutdown is nearing an end, with a block of eight Democrat senators breaking ranks to support a Republican stopgap measure to fund some agencies.
The kiwi dollar traded at 56.27 US cents at 5pm in Auckland, unchanged from 7am and up from 56.19 cents last week.
Australia’s S&P/ASX 200 was up 0.6% in late trading, while Japan’s Nikkei 225 index climbed 1% and Hong Kong’s Hang Seng advanced 0.6%. S&P 500 futures were pointing to a 0.7% gain when Wall Street opens.
Trading of Vital Healthcare Property Trust units was halted to let the healthcare property investor raise $190 million in a placement at $1.75 apiece, with another $30 million to be sought in a unit purchase plan. The proceeds will fund the $214 million purchase of its management contract from Canada’s Northwest, and is expected to save the commercial landlord $20.9 million a year.
Northwest’s 28% stake will be diluted by the capital raising, and it’s agreed to keep at least a 10% holding until after the June 2026 result is released in August next year.
Property stocks were all weaker, with Kiwi Property Group down 1.8% at $1.07 on a volume of 4.1 million shares – the most for the day – while Investore Property declined 1.6% to $1.25, Stride Property Group slipped 1.4% to $1.44 and Precinct Properties NZ decreased 1.2% to $1.215.
“There was a bit of a selloff in the property stocks, without which we’d be looking at a more positive day,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene. “It was a little bit of a surprise that the capital raise is at a discount to NTA”, he said referring to its net tangible asset value of $2.51 per unit.
The local market was led higher by utilities software firm Gentrack, which rose 3.1% to $8.88, snapping two days of declines, after signing a new deal to supply Canada’s air traffic control not-for-profit firm NAV CANADA.
Meanwhile, a2 Milk Co gained 2% to $11.01 after the infant formula marketer expanded its long-term arrangements with China State Farm to include English label formula products in the cross-border ecommerce channel.
ANZ Group Holdings climbed 3% to $43.85 after the dual-listed lender posted a 14% decline in annual earnings, due largely to a series of one-off charges totalling A$1.11 billion to cover the cost of widespread restructuring, settling penalties levelled by the Australian Securities & Investments Commission and booking impairment charges. The New Zealand arm lifted cash earnings 4% as it grew lending and widened its margins.
Westpac Banking Corp, which reported last week, dipped 0.3% to $44.60, while across the Tasman, ASX-listed Commonwealth Bank of Australia was down 0.6% at A$174.94 in late trading while National Australia Bank slipped 0.3% to A$43.295.
Heartland Group Holdings, which holds its annual meeting on Wednesday in Ashburton, declined 0.9% to $1.08.
Global logistics firm Mainfreight rose 1.8% to $59.70 ahead of its first-half earnings on Wednesday, while Infratil increased 0.7% to $12.43 with its first-half result scheduled on Thursday.
Fletcher Building gained 0.9% to $3.52 after the building materials firm said it sold its 13% in the NX2 Pūhoi to Warkworth public private partnership to a local infrastructure investor for $20.2 million, including a pre-completion dividend.
Outside the benchmark index, Comvita increased 2.6% to 78 cents after shareholder Li Wang – who’s signed a lock-up agreement accepting Florenz’s 80 cents per share offer – urged her fellow shareholders to accept the bid, calling it the best chance to recoup some of their investment.
PaySauce rose 3% to 34 cents after the payroll software firm lifted first-half earnings 42%, with recurring revenue up 5%.
Rua Bioscience jumped 7.1%, or 0.2 of a cent, to 3 cents after the medicinal cannabis firm posted record quarterly revenue in the September period.
And Black Pearl Group slipped 0.9% to $1.14 after the firm said it’s been conditionally accepted to list on the ASX, which will be its secondary exchange if all things go ahead.
Reporting by Paul McBeth.
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