MARKET WRAP: NZ shares rise as A2 rebounds, Infratil gains after reporting
Pushpay falls after its annual results despite meeting guidance.
Hot Topic
EARNINGS
The market had a muted reaction to today’s release of the budget, with New Zealand shares rising on A2 and Infratil gains.
The NZX50 index rose 47.87 points to 8,603.38, on turnover of $144 million.
“Invariably, budgets these days don't directly impact a lot on the market,” says Craigs Investment Partners senior investment adviser Nigel Scott.
“The key thing is financial stability, the ability to look at the government debt, the growth side and what they're going to spend.”
The no-surprises budget has a surplus of $3.1 billion in the financial year ending June 30, rising to an estimated $7.3b by 2022.
Government spending will remain below 30% of GDP and net core Crown debt is forecast to fall to 19.1% of GDP by 2021-22.
In the market today, A2 Milk shares gained 47c, or 4.2% on the index, to $11.77, while shares in its supplier Synlait Milk rose 1.94% to $10.50. Trade volume was 3.3m for A2, valued at $39m.
A2 has "basically recovered 50% from it's low yesterday. Analysts obviously have had time to look at their forecasts," Mr Scott says. A2 sank as low as $10.50 on Wednesday.
Pushpay today announced its revenue doubled in the year ended March to $US70.2 million, while it narrowed its net annual loss by 9% to $US23.3m.
Shares in the mobile payments company fell 21c, or 5.1%, to $3.88.
“It still has the intention of a US listing, where 97% of its clients are," and overall, the result was probably not too bad. "Tech-related stocks tend to move around,” says Mr Scott.
Infratil moved up 6c to $3.275. Its full-year net profit fell $5.6m to $60.5m for the year ended March.
“The remarkable story of the day is actually Z Energy,” says Mr Scott. That was because the stock shed the 21.9c final dividend overnight but still rose 25.9c, or 3.6%, to $7.55.
Serko rose 14c, or 4.9%, to $2.99. Orion Healthcare was down 1c to $0.68 while Spark fell 8c to $3.49.
Mackenzie Smith
Wed, 11 Jul 2018
Wed, 11 Jul 2018
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
MARKET WRAP: NZ shares rise as A2 rebounds, Infratil gains after reporting
74988