NZME hit a seven-week high as it raised its earnings outlook.
New Zealand’s S&P/NZX 50 index dodged Australia’s decline after an unexpectedly hot pace of inflation across the Tasman tempered predictions for the Reserve Bank of Australia to cut its benchmark interest rate, weighing on the S&P/ASX 200 index.
The NZX50 kept its head above water, led by Sky Network Television as the pay-TV operator secured broadcasting rights for the Olympic Games through to 2032, while outside the benchmark, NZME surged to a seven-week high after raising its earnings outlook with a healthier top line than the publisher and broadcaster had anticipated.
The a2 Milk Co was among the day’s gainers, taking a lead from Danone as the French dairy giant beat quarterly earnings expectations with accelerating sales in China, while Fonterra Shareholders’ Fund units dipped ahead of the New Zealand cooperative’s special meeting on Thursday to approve selling its Mainland consumer business to France’s Lactalis.
And Ebos Group advanced after the animal and healthcare products maker reiterated plans to spend this financial year building towards resuming growth in the June 2027 year at today’s annual meeting, where director Stuart McLauchlan was re-elected with a small protest vote against to his staying.
New Zealand’s NZX50 increased 6.55 points, or 0.1%, to 13,409.21, with 22 stocks gaining, 23 declining, and five unchanged. Turnover was $123 million across the main board, of which Fisher & Paykel Healthcare accounted for $12.8 million as it advanced 0.5% to $36.12.
Stock markets across Asia were mixed after another strong lead from Wall Street, where investors are counting down to earnings from Magnificent 7 megacap companies including Microsoft, Amazon, Apple, Alphabet and Meta Platforms.
The US corporate earnings season has beaten expectations so far, pushing the major indices to new heights, and in some cases breaching the top end of the relative strength index. That’s a technical level some analysts see as a turning point.
“It’ll be interesting to see whether the momentum will carry on,” said Peter McIntyre, an investment adviser at Craigs Investment Partners.
Australia’s ASX200 was down 0.9% in late trading after Bureau of Statistics figures showed the annual pace of inflation accelerated to a 15-month high 3.2%, cooling expectations for the Reserve Bank of Australia to cut its target cash rate next week. The kiwi dollar dropped to 87.65 Australian cents at 5pm in Auckland from 88.08 cents yesterday.
Craigs’ McIntyre said there’s potential for a weaker kiwi to run a little lower against its Aussie counterpart.
Meanwhile, the kiwi dollar traded at 57.85 US cents from 57.78 cents yesterday ahead of the US Federal Reserve’s policy review, which is expected to deliver another cut to the federal funds rate.
Sky Network Television led the NZX50 higher, climbing 2.9% to $3.55 after the pay-TV operator secured the broadcasting rights for the Olympic Games until 2032, and will use its recently acquired Three channel in its line-up for free-to-air viewers.
Outside the benchmark index, NZME jumped to a seven-week high, ending the day up 6.7% at $1.12 after lifting its earnings guidance as revenue comes in ahead of its expectations, while the media group continues to clamp down on costs.
The media company’s advertising revenue is often seen as a bellwether for the economy, much like courier company Freightways, which is holding its annual meeting on Thursday. It gained 1% to $13.73 in trading today.
Retailers were broadly stronger, with Briscoe Group up 2.3% at $5.35, KMD Brands gaining 1.7% to 29.5 cents, and Hallenstein Glasson Holdings advancing 0.1% to $9.72.
The a2 Milk Co rose 1.9% to $10.70, following Danone higher after the French dairy company beat earnings expectations overnight, pointing to accelerating sales growth in China – a2’s main market – as offsetting weakness in North America.
Synlait Milk was unchanged at 74 cents, while Fonterra Shareholders’ Fund units dipped 2.9% to $8.11 ahead of the dairy cooperative’s special meeting for farmer shareholders to approve the $4.22 billion sale of the Mainland consumer business to France’s Lactalis.
Air New Zealand was the most heavily traded stock on the day with a volume of 2.3 million shares changing hands as it rose 1.7% to 60 cents.
Ebos Group gained 0.6% to $28.17 as the animal and healthcare products maker told shareholders at today’s annual meeting that it expects to resume growing in the June 2027 year after a period of transition. Director Stuart McLauchlan, who chairs the risk and audit committee, was re-elected with a small protest vote against him keeping his seat at the board.
Vista Group International posted the biggest decline on the NZX50, falling 3.9% to $2.70, while the dual-listed lenders were weaker in the broad Australian selloff as Westpac Banking Corp slid 2.8% to $43.72 and ANZ Group Holdings declined 1.7% to $41.85.
NZX slipped 1.6% to $1.515 after the stock market operator said September quarter revenue rose 8.4% to $32.7 million, with gains in the Smart funds management and Wealth Technologies arms more than offsetting a decline in secondary markets revenue.
South Port New Zealand was unchanged at $9.21 after chief executive Nigel Gear used today’s annual meeting to announce his retirement next year. The country’s southern most port operator expects to keep prospering in the current financial year, with strong agricultural tailwinds for dairy and red meat and new growth opportunities coming from aquaculture and renewable energy.
And trading of New Talisman Mines was halted by NZ RegCo after the minnow gold miner said it’s entered into a heads of agreement for the offtake of gold concentrate. The market supervisor sought the halt while it discussed the announcement with the company. The shares rose 17%, or 0.9 of a cent, to 6.2 cents before the halt.
Reporting by Paul McBeth.
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