Fletcher shook off a broker downgrade as building permits rise.
Westpac CEO Catherine McGrath.
Westpac Banking Corp led New Zealand’s S&P/NZX 50 index higher in a mixed day across Asia, with the first of Australia’s major lenders reporting this season hiking its dividend even as tight competition crimped its annual profit.
Australia’s S&P/ASX 200 index was struggling to keep its head above water late in the session with the Reserve Bank of Australia’s rate review on Tuesday hanging over the market with muted expectations for a rate cut after faster-than-expected inflation figures.
Meanwhile, Fletcher Building shrugged off a cut to its target price by Macquarie analysts, with Statistics New Zealand figures showing a pickup in new building consents in September, while retirement village operator Summerset Group Holdings and aged care provider Oceania Healthcare were also on the green side of the ledger.
And local tech companies were broadly weaker with Serko posting the biggest decline on the top 50, missing out on the strong lead from the Nasdaq Composite on Friday after Amazon set the scene with stronger-than-expected earnings.
The NZX50 nudged up 7.98 points, or 0.1%, to 13,556.3 in its seventh straight gain, with 22 stocks in positive territory, 20 on the red side of the ledger, and eight unchanged. Turnover was $134.7 million across the main board, with Fisher & Paykel Healthcare accounting for $15.2 million as the medical device maker declined 0.9% to $36.75, joining its ASX-listed rival Resmed lower.
Westpac Banking Corp led the local bourse higher, rising 3.8% to $45.40 after spitting out a bigger dividend than the prior year, even as annual profit dipped 1% amid heightened competition for loans and deposits.
The Australian lender is undergoing a transformation under the new leadership of Anthony Miller, who wants to simplify an unwieldy number of backend systems used by the bank. The lender also announced the sale of its A$21.4 billion RAMS mortgage portfolio.
“Westpac raised their dividend and that’s probably making their investors feel a little bit happier,” said Peter McIntyre, an investment adviser at Craigs Investment Partners.
ANZ Group Holdings, which reports next Monday, rose 0.6% to $42.06, while Heartland Group Holdings was unchanged at $1.085.
Australia’s ASX200 was down 0.1% in late trading, with investors unnerved by inflation data last week showing a faster pace than expected, and prompting analysts to pare back their forecasts for a rate cut by the Reserve Bank of Australia at its Tuesday meeting. The kiwi dollar traded at 87.34 Australian cents at 5pm in Auckland from 87.51 cents last week, and was at 57.23 US cents from 57.32 cents.
Fletcher Building gained 0.6% to $3.28, shrugging off Macquarie analysts cutting their target price on the building materials firm, with Stats NZ figures showing a lift in new residential building permits in September.
Satish Ranchhod, a senior economist at Westpac NZ, said the latest data are hinting at the start of a recovery for residential building, which should accelerate as lower interest rates work through the system.
“After falling sharply through 2023 and 2024, homebuilding activity has been tracking sideways since the start of the year, and we don’t expect a significant turn-around through the final months of 2025,” Ranchhod said in a note. “Nevertheless, the stabilisation in consent numbers indicates that we’re unlikely to see further significant declines over the remainder of this year, though some individual construction firms are still facing tough conditions.”
Retirement village operator Summerset Group Holdings rose 2.2% to $11.85 and aged care operator Oceania Healthcare gained 1.3% to 80 cents, while Ryman Healthcare was unchanged at $2.87.
Outside the benchmark index, property developer CDL Investments fell 0.6% to 80.5 cents, while Winton Land dropped 3.1% to $2.17.
Among the majors that gained on the day, Meridian Energy increased 0.3% to $5.94, Contact Energy rose 1.3% to $9.44 and Mainfreight advanced 1.2% to $61.
SkyCity Entertainment Group was the most heavily traded stock with a volume of 4.2 million shares as it rose 2.1% to 74.5 cents. Of that, 1 million shares changed hands in a single trade at 72 cents.
Serko posted the biggest decline on the day, falling 3.3% to $2.63, with tech companies generally weaker, despite the Nasdaq’s rally on Friday spurring gains for the likes of Xero and Wisetech Global in Australia.
Gentrack slipped 2.2% to $8.95, while Vista Group International was unchanged at $2.65. Outside the NZX50, Eroad fell 2.8% to $1.89.
Santana Minerals declined 1.1% to 88 cents after the would-be miner lodged a fast-track consent application for its proposed mine in Central Otago. Gold futures were recently up 0.5% at US$4,015 an ounce.
Rua Bioscience dropped 11%, or 0.4 of a cent, to 3.1 cents after the medicinal cannabis company said it plans to raise $2 million in a one-for-three renounceable rights at 2.5 cents a share. The money raised will cover working capital and marketing costs.
Reporting by Paul McBeth.
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