Comvita’s director elections were a close run thing.
New Zealand’s S&P/NZX 50 index posted its worst day in almost three weeks as blue chip companies such as Infratil, Meridian Energy, Fisher & Paykel Healthcare and Spark New Zealand dragged the benchmark lower as trading desks turn their mind to the end of the year.
Freightways was among the day’s gainers after the courier company built on its Australian footprint with a A$71 million acquisition of VT Freight Express, which will immediately add a tailwind to earnings, while Channel Infrastructure posted the biggest gain on the day, with the slump in global oil prices cutting a major input cost for carriers such as Air New Zealand.
Among the handful of local annual meetings today, Comvita’s returned director Bob Major and added Greg Barclay to the board, in a close-run vote for both candidates.
And Heartland Group Holdings rallied after the Reserve Bank eased capital requirements on lenders.
The NZX50 fell 129.04 points, or 1%, to 13,295.91in its steepest decline since Nov 27, with 26 stocks declining, 19 gaining, and five unchanged. Turnover across the main board was $151.7 million, of which Infratil accounted for $22.2 million as it fell 2.5% to $10.90.
Established names were among those weighing on the benchmark index, with Meridian Energy leading the NZX50 lower as it slid 3% to $5.43, while Ebos Group dropped 2.7% to $26.86 and Spark New Zealand declined 2.6% to $2.25. F&P Healthcare decreased 1.7% to $37.25.
Stock markets across were mixed, with Australia’s resources-heavy S&P/ASX 200 index down 0.2% in late trading, while Singapore’s Straits Times Index fell 0.3%, while Japan’s Nikkei 225 advanced 0.2%.
Brent crude oil futures recovered some of their losses overnight, having hit their lowest level since early 2021, and were up 1.3% at US$59.70 a barrel.
That slump knocked global energy majors including Chevron, Exxon Mobil, BP and Shell, and closer to home, Australia’s Ampol and Woodside Energy were on the red side of the ledger.
New Zealand’s import terminal, Channel Infrastructure, posted the biggest gain on the NZX50, advancing 2.6% to $2.75, while Air New Zealand missed out on gains among other carriers as it ended the day unchanged at 58 cents.
Freightways climbed 2.3% to $14.11 after buying Victoria-based VT Freight Express for A$71 million, which it said will add 6% to earnings per share in the first year and will be funded from new and existing debt facilities.
Global logistics firm Mainfreight dipped 0.2% to $67.35.
“The chief executive came out and said it’s a very similar business to an existing one in Australia and it looks like a natural fit for their existing operations,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene. “It’s not a huge acquisition in the scheme of a $2.5 billion company and it will be funded from their existing debt line, so no capital raise needed.”
Turners Automotive Group gained 2.6% to $8.26 after the Westpac McDermott Miller consumer confidence survey showed growing optimism among households in the December quarter. Retailers were mixed with Hallenstein Glasson Holdings up 0.2% at $9.83, while Briscoe Group slipped 0.6% to $4.85 and KMD Brands dropped 1.9% to 26.5 cents.
Colonial Motor Co rose 2.9% after upgrading its first-half profit outlook.
Heartland Group Holdings gained 1.4% to $1.11 after the Reserve Bank said it will loosen capital restrictions on lenders, which should free up about $5 billion of common equity across the system. The Australian banks were softer, with ANZ Group Holdings down 1.1% at $41.05 and Westpac Banking Corp falling 1.1% to $43.75.
Meanwhile, Chorus rose 0.4% to $9.33 after the government decided to press ahead with plans to sell the interest free loans and preference shares used to help finance the network operator’s ultrafast broadband network.
Dairy companies were mixed after the ninth straight decline in milk prices at the fortnightly Global Dairy Trade auctions. Fonterra Shareholders’ Fund units rose 0.8% to $8.219, while a2 Milk Co fell 1.6% to $10.43 and Synlait Milk dropped 4.5% to 64 cents.
Rural services firm PGG Wrightson advanced 3.6% to $2.29, while Allied Farmers dipped 1.9% to 79.5 cents, and NZ Rural Land Co was unchanged $1.03.
Napier Port declined 1.6% to $3.71 after reaffirming guidance at today’s annual meeting, while Sanford increased 0.6% to $7.15 after cautioning that the 2025 year was bolstered by several factors outside the firm’s control that might not be repeated.
Comvita was unchanged at 53.5 cents after shareholder Alan Bougen’s nominated director Greg Barclay was elected to the board with 53% support while Bob Major was returned to the board with 59%.
NZ King Salmon was the most heavily traded stock on the day with a volume of 2.2 million shares, of which 2 million changed hands in a single trade at 19.4 cents. The shares fell 0.5% to 19.6 cents in the session.
And the New Zealand dollar traded at 57.85 US cents at 5pm in Auckland from 57.70 cents yesterday after Statistics New Zealand figures showed the current account deficit didn’t narrow as much as predicted, as it shrank to $15.4 billion in the 12 months ended Sept 30, or 3.5% of gross domestic product.
Reporting by Paul McBeth.
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