Fisher & Paykel Healthcare beat expectations when reporting a 39% increase in first-half profit.
© All content copyright NBR. Do not reproduce, even if you have a paid subscription.
The Reserve Bank delivered a quarter-point rate cut as widely expected, but a more modest outlook and a dissenting vote to keep the key rate unchanged prompted a sharp rally in the kiwi dollar as economists dialled back their expectations for another reduction in the new year.
Meanwhile, New Zealand’s S&P/NZX 50 index gained as Fisher & Paykel Healthcare beat expectations when reporting a 39% increase in first-half profit, with a softer kiwi dollar and sharper cost reductions propelling the country’s biggest listed company above $40 a share for the first time.
Channel Infrastructure rallied after the import terminal operator bought a quarter-stake in a jet fuel pipeline serving Melbourne Airport, while Gentrack led the benchmark index higher after getting another upgraded target price.
And the NZX will be welcoming another junior mining company in the new year, with West Coast-based Taiko Critical Minerals planning a direct listing ahead of raising capital in the middle of 2026 with a view to starting operations the following year.
The NZX50 climbed 81.58 points, or 0.6%, to 13,562.01, with 20 stocks gaining, 25 declining and five unchanged. Turnover was $148.9 million, of which Fisher & Paykel Healthcare accounted for $44.2 million as it propelled the index higher, gaining 4.6% to $38.40.
The country’s biggest listed company climbed as high as $40.46 after reporting a 39% gain in first-half profit and cracked $1 billion of revenue for the first time in a six-month period. The medical device maker raised annual earnings guidance by $20 million.
Those gains had been larger earlier in the session for both the index and F&P Healthcare, but the NZX50 pulled back after the Reserve Bank’s final monetary policy statement of the year delivered the expected 25 basis point reduction to the official cash rate, but narrowed the chances of a further reduction.
“The main news of the day was the RBNZ, which I’d describe as a hawkish cut to 2.25% with a five-one vote, with one of those parties wanting to stay put,” said Matt Goodson, managing director at Salt Funds Management. “What that’s done is see the currency rally quite sharply.”
The kiwi rose to 56.92 US cents at 5pm in Auckland from 56.24 cents at 7am and 56.03 cents yesterday, and climbed to 87.53 Australian cents from 86.82 cents yesterday.
The local market joined a broad rally across Asia with Australia’s S&P/ASX 200 index up 0.9% in late trading, while Japan’s Nikkei 225 index jumped 2.1% and Hong Kong Hang Seng advanced 0.5%.
Gentrack led the benchmark index higher, jumping 7.7% to $10.35, and extending its rally to four days, over which time it’s climbed 38%. The utilities software developer had its target price raised by Jefferies analysts, while Forsyth Barr’s research team trimmed their target.
Channel Infrastructure advanced 3.3% to $2.79 after saying it’s bought a 25% stake of the Somerton pipeline joint venture supporting jet fuel supply at Melbourne Airport for A$14.2 million. Separately, the import terminal operator said it expects to take a secondary listing on the ASX early next year.
Stride Property Group increased 0.3% to $1.415 after reporting an 8.6% decline in first-half adjusted funds from operations while affirming annual dividend guidance. The commercial landlord said it’s entered into a conditional agreement with Auckland Council to buy a 125-year lease in the city’s Wynyard Quarter for $17.5 million, with a view to developing it for mixed use retail and office space.
Fletcher Building was the most heavily traded stock on the day, with a volume of 2.3 million as the building materials firm increased 1.5% to $3.32.
Genesis Energy joined the list of power companies holding investor day briefings, saying the Huntly firming facility will remain cash positive under all of the firm’s modelled scenarios out to 2035 as it expands its renewable options. The company gained 0.4% to $2.46.
KMD Brands posted the biggest decline on the NZX50, falling 3.5% to 27.5 cents, while Infratil slipped 2.9%, or 34 cents, to $11.44 after shedding rights to its 7.25 cents per share dividend.
NZX slipped 0.3% to $1.53. West Coast-based Taiko Critical Minerals announced plans to join the local stock exchange through a direct listing early next year, with a view to raise capital later in 2026.
Outside the benchmark index, Savor Group was unchanged at 22 cents after the Auckland hospitality group reported an unchanged first-half loss of $1.1 million as revenue slipped 6%. Since the Sept 30 balance date, the company has agreed new arrangements with key suppliers that will result in cash payments of $1 million before the end of the calendar year.
And Arborgen increased 2.3% to $13.4 cents after the forestry firm reported record first-half sales volumes and revenue and a narrower loss of US$600,000.
Reporting by Paul McBeth.
Sign up to get the latest stories and insights delivered to your inbox – free, every day.
