NZX50 muted as Australia recovers, Japan soars

New Zealand’s S&P/NZX 50 index ended Monday in positive territory, coming back from the long Waitangi weekend, but missing out on the stronger showings in Australia where miners such as Newmont and beat-up software firms like WiseTech Global clawed back Friday’s losses, or in Japan where prime minister Sanae Takaichi swept a supermajority in her snap election.

Rubber goods maker Skellerup Holdings led the local benchmark index higher after the firm was upgraded by Craigs Investment Partners analysts, with the firm kicking off the domestic earnings later this week.

The power companies were mixed after energy minister Simon Watts announced plans for the government to build a liquified natural gas terminal off the Taranaki coast to provide reliable back-up energy to the system when dry years threaten the hydro schemes.

And Rakon rallied after the high-tech components maker received a formal takeover bid from US suitor Bourns, with a target company response and independent adviser’s report expected in two weeks.

Catch up

The NZX50 increased 2.35 points, to 13,446.37, with 22 stocks gaining, 20 declining and eight unchanged. Turnover across the main board was $162.6 million, of which Fisher & Paykel Healthcare accounted for $22.4m as it fell 1.6% to $39.28.

The local bourse played catchup in the session having missed a savaging in Australia on Friday during the Waitangi Day public holiday, which was followed by a recovery on Wall Street as fraught nerves about the impact of artificial intelligence firms on software-as-a-service players settled down after a three-day slide.

Stocks across Asia rallied as Australia’s S&P/ASX 200 index jumped 1.9% in late trading, with recovering mining and tech stocks buoying the resources-heavy bourse, while Japan’s Nikkei 225 index surged 4.3% as investors welcomed the parliamentary supermajority secured by prime minister Sanae Takaichi’s Liberal Democratic Party, which promised an expansive fiscal programme.

The kiwi dollar climbed to 60.14 US cents at 5pm in Auckland from 59.63 cents last week and gained to ¥94.35 from ¥93.47.

“Considering the recovery in the States and what we’re seeing in Asia, New Zealand’s been a lacklustre market,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. “We’re in a bit of a holding pattern while people wait for our earnings season.”

Rubber results

Rubber goods maker Skellerup led the local bourse higher, jumping 8.1% to $5.62 after getting upgraded by Craigs analysts ahead of its first-half result due to be announced on Thursday.

Craigs’ McIntyre said the firm has strong earnings capability and – before today’s spike in price – was trading at an attractive dividend yield of 6%.

Beat-up software firms were also at the top of the leaderboard, with Vista Group International climbing 5% to $1.90 and Gentrack advancing 3.4% to $7.24. Travel software firm Serko dropped 3% to $2.55, while outside the benchmark index, Eroad was unchanged at $1.06 and Black Pearl Group dropped 6.4% to $1.10.

Power companies were mixed after energy minister Simon Watts announced plans to contract the construction of an LNG terminal in Taranaki to help mitigate dry year risk to the nation’s hydro schemes, with a view to it being up and running next year.

Genesis Energy, which runs the coal- and gas-fired Huntly back-up plant, rose 0.4% to $2.47, while Meridian Energy, the country’s biggest generator, gained 0.7% to $5.75. Mercury NZ dipped 0.2% to $6.46 while Contact Energy decreased 0.5% to $9.60.

Lines company Vector fell 2.2% to $4.89. 

Broadband network operator Chorus posted the biggest decline on the NZX50, falling 3.7% to $9.20, while Napier Port Holdings slipped 2.6% to $3.69 and Sky Network Television shed 2.5% to $3.17.

Spark New Zealand was the most heavily traded stock on the day with a volume of 2.8 million as it fell 2.2% to $2.19.

Outside the benchmark index, Rakon advanced 2.5% to $1.445 after US manufacturer Bourns made its $1.55-per-share takeover offer formal, which is open until March 23. Rakon will respond with a target company statement within a fortnight, with an independent adviser’s report by Calibre Partners attached.

Pacific Edge jumped 10% to 20.5 cents after the bladder cancer test maker said its Medicare administrator Novartis will hold a committee hearing on Feb 19 on the evidence for urine biomarkers in patients with haematuria. Trading of the biotech firm’s shares will be halted ahead of the meeting, and will last until Pacific Edge updates investors on the context of what the committee covers.

Reporting by Paul McBeth.