Tourism Holdings is seeing a recovery in forward bookings.
New Zealand’s S&P/NZX 50 index kept its head above water in quiet trading heading into the long Labour Weekend, shrugging off the latest twists in global trade as US President Donald Trump terminated negotiations with neighbouring Canada.
Skellerup Holdings and Vista Group International led gainers on the day, as investors continued to rally behind their latest trading updates, while Heartland Group Holdings advanced after getting a boost to its target price by Forsyth Barr analysts following its quarterly reveal.
Tourism Holdings was the latest listed company to hold a gathering of shareholders, flagging strong forward bookings in New Zealand, Australia and Canada, while refraining from giving earnings guidance as it works through various transformation programmes.
And Rakon has added a new independent director to its board since the founding Robinson family and Siward Crystal Technology shook up the boardroom, with Elevation Capital’s Chris Swasbrook taking a seat at the table.
The NZX50 rose 14.49 points, or 0.1%, to 13,391.59, taking its weekly gain to 0.8% and snapping two weeks of declines. Within the index, 33 stocks gained on Friday, 13 fell and four were unchanged. Turnover was $130.2 million across the main board, of which Fisher & Paykel Healthcare accounted for $14.6 million as it gained 0.3% to $35.86.
The week was dominated by the US corporate earnings season delivering more positive surprises than the norm, and even Tesla’s slide in quarterly profit was taken in its stride as investors took heart from a calming in the tensions between the US and China.
Still, US President Donald Trump surprised markets during the Asian session, announcing an immediate end to trade talks with Canada after the Ontario state government sponsored a TV ad featuring Ronald Reagan speaking ill of tariffs.
The kiwi dollar held its overnight gains against the greenback, trading at 57.52 US cents at 5pm in Auckland from 57.25 cents yesterday, and 57.30 cents at the end of last week. The yield on New Zealand’s 10-year government bond rose 2 basis points to 4%, up from 3.96% a week ago.
Locally, annual meetings and trading updates have indicated cautious glimmers of light for the domestic economy, with Tourism Holdings’ AGM today revealing the rental campervan operator’s forward bookings in New Zealand, Australia and Canada are tracking well. Still, its ongoing restructuring made it wary of providing earnings guidance, with chief executive Grant Webster settling on saying he expects a return to profit in the current financial year.
“The US still seems tough but their forward bookings for the rest of their business in New Zealand, Australia and Canada are 20% of last year,” said Matt Goodson, managing director at Salt Funds Management, who noted global tourism still hasn’t returned to its pre-covid levels.
Air New Zealand was unchanged at 60 cents, with almost 5 million shares changing hands in the biggest volume for the day, while Auckland International Airport was also unchanged at $8.20.
Skellerup Holdings led the benchmark index higher, gaining 3.9% to $5.40, while Vista Group International advanced 3.7% to $2.84, with investors continuing to rally behind the firms with their positive updates this week. Skellerup also had its target price raised 20 cents to $6.20 by Forsyth Barr analysts.
Heartland Group Holdings gained 0.5% to $1.095 after Forsyth Barr analysts raised their target price 14 cents to $1.10 after the bank and reverse mortgage provider’s September quarter earnings beat expectations.
SkyCity Entertainment Group posted the biggest decline on the NZX50, falling 3.3% to 71.5 cents, while KMD Brands slipped 3.2% to 30 cents.
Outside the benchmark index, Rakon slipped 1.2% to 85 cents after the high-tech components maker said Elevation Capital founder Chris Swasbrook will join the board next week as an independent director.
Meanwhile, AoFrio surged 13%, or 1.2 cents, to 10.6 cents, and Eroad recovered some of this week’s losses, gaining 7.8% to $2.08.
Smartpay received the final court order for its scheme of arrangement with Shift4 Payments, and will be suspended from trading on Oct 29 before delisting on Nov 4. The shares dipped 0.4% to $1.19.
Reporting by Paul McBeth.
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