Index re-weightings drove plenty of activity.
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New Zealand’s S&P/NZX 50 index gained in heavy trading as institutional investors rejigged their portfolios to align with the latest MSCI index reweightings, with Fisher & Paykel Healthcare, Auckland International Airport, Goodman Property Trust and Spark New Zealand topping the volume list.
Gentrack hit a seven-week high to lead the benchmark index as the utilities software firm talked up its medium-term outlook after its annual earnings only just met the firm’s guidance.
Kiwi Property Group dipped after the commercial landlord reaffirmed its guidance to pay a bigger annual dividend than the prior year as cash earnings grew in an improving economy.
And property developers Winton Land and CDL Investments were on the green side of the ledger after building and construction minister Chris Penk announced an overhaul of the building defects liability, introducing compulsory home warranties for new residential building.
The NZX50 rose 80.45 points, or 0.6%, to 13,499.85, with 28 stocks gaining and 22 declining. Turnover across the mainboard was a busier-than-usual $473 million as the stock exchange extended the adjust trading period to allow for the MSCI index review.
Fisher & Paykel Healthcare accounted for $128 million of that as the medical device maker advanced 1.2% to $37.31 ahead of its first-half earnings on Wednesday, which will be a key event for the week given it’s New Zealand’s biggest listed company.
Auckland International Airport was the most heavily traded stock with a volume of 14.4 million shares as it increased 2.4% to $8.01 on turnover of $116 million.
Among other heavily traded stocks, Spark New Zealand slipped 0.4% to $2.24, Goodman Property Trust increased 1% to $2.03 and Infratil edged up 0.1% to $11.56.
Gentrack led the market higher, surging 18% to $9.28 after the utilities software developer fell short of analysts’ earnings expectations, but said it has as many as 10 strong contract possibilities coming in the next year. That would set it up for a strong September 2027 year.
“We just didn’t think there was a lot of confidence around their outlook momentum to provide real confidence for FY26,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. “If they were able to achieve that medium-term goal, that would definitely re-rate the stock, but it’s just from that result it’s hard to see why they’ve got to where they are today.”
McIntyre pointed out Gentrack’s not a very liquid stock, meaning it’s more prone exaggerated movements and volatility.
Retailer Briscoe Group rose 3.3% to $5.39 while travel software firm Serko climbed 3.2% to $2.60.
Ryman Healthcare increased 0.7% to $2.89 after the retirement village developer said it refinanced its $2 billion syndicated banking facilities, extending the average tenor to five years. The company is due to report first-half earnings on Thursday.
KMD Brands posted the biggest decline on the NZX50 as it fell 3.6% to 27 cents, while Air New Zealand slipped 2.4% to 60.5 cents and Skellerup Holdings decreased 2.2% to $5.43.
Kiwi Property Group declined 0.5% to $1.085 after the commercial landlord said first-half adjusted funds from operations rose 7.2% and reaffirmed guidance for annual dividends of 5.6 cents per share. The property investor said it’s positioned to benefit from the improving economy.
Genesis Energy slipped 0.8% to $2.48 after the power company said it will proceed with the $236 million Edgcumbe solar farm, which it will initially fund from its own balance sheet.
Property developers were broadly stronger after building and construction minister Chris Penk said the joint and several liability regime for building defects will be dumped and replaced with proportionate liability. As part of the shake-up, all new residential buildings of three storeys or lower, or renovations of $100,000 or more will need mandatory home warranties covering a one-year defect period and a 10-year structural warranty.
Winton Land rose 1.5% to $2.05 and CDL Investments gained 2.6% to 80 cents, while building materials firm Fletcher Building decreased 0.3% to $3.35.
Metro Performance Glass increased 4.4%, 0.2 of a cent, to 4.7 cents after the glass products maker returned to profit, as it cut costs faster than revenue shrank.
Santana Minerals climbed 4.9% to 97 cents after the gold prospector said the Environmental Protection Authority accepted its fast-track application and will convene a panel to assess the Central Otago mine. Santana said mine construction is expected to start in mid-2026, provided it secures approval.
The kiwi dollar traded at 56.07 US cents at 5pm in Auckland from 56.13 cents at 7am and 56.13 cents last week.
Reporting by Paul McBeth.
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