NZX 50 gains 0.2%, SkyCity loses spot on the 20
The S&P/NZX 50 climbed 0.2% to 12,564.420 with about 35.3 million shares changing hands, amounting to $118.7m in value traded.
Harbour Asset Management portfolio manager Shane Solly said Fisher & Paykel Healthcare
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NZ Herald
14 minutes ago
- NZ Herald
Uber seeks drivers for Gisborne launch as rideshare service expands
'We believe Uber can play a positive role in Gisborne by improving local mobility with a new way to travel from A to B and creating new earning opportunities for those who want to work more flexibly,' Local bar owners who spoke to the Gisborne Herald were positive about getting the service. Kerry Donovan, managing director of Smash Palace Bar, said any ride service that improves choice and safety would be welcomed. Photo / Uber 'Affordable and reliable transport has long been an issue for Smash,' said Kerry Donovan, managing director of Smash Palace Bar in Banks St, in the industrial subdivision. 'We're acutely aware that our location can make it difficult for our customers to get to and from the bar safely. So, ensuring our customers have a safe way home is a key consideration when we plan events and in our daily host responsibility duties,' Donovan said. 'Local taxi companies are fantastic but seem stretched some nights, so any service that improves choice and safety will be warmly welcomed.' The Dome Bar and Cinema's Sally Shanks had similar sentiments. 'It would be incredible,' Shanks said. 'One of our biggest issues is getting people home. We call taxis for people, but they're few and far between ... you run the risk of people just becoming very frustrated and then driving home, so it's definitely a win-win for us. It would help us enormously.' Hayden Green, general manager of regional economic development agency Trust Tairāwhiti, said it was 'positive news for the region'. 'A reliable and convenient rideshare option will encourage more people to enjoy Gisborne's nightlife, knowing they have safe and accessible transport available,' Green said. 'This will complement existing taxi services and support local businesses and employment options. 'As Tairāwhiti continues to grow as a visitor destination and a vibrant place to live, introducing an app-based, on-demand transport option will help fill gaps in the region's transport network.' Gisborne Taxis Society Ltd manager Rikelle Smith had a mixed response. 'It's a good thing that Uber is coming to town, especially for those who are often left waiting in town for long periods on Thursday, Friday, and Saturday nights,' Smith said. 'I'm pleased that more people will now be able to get home safely and without the long wait. That said, Gisborne Taxis has been in operation for over 70 years - this is our bread and butter, and Uber's arrival will have a real impact on us. We're not happy about that. 'However, Gisborne Taxis will continue to be here for our community 24/7 - even though, like many services, we sometimes face challenges with car availability on busy nights.' Chris Lankshear, of Gisborne Airport and City Taxis, said he had recently heard that a population of around 70,000 was needed to sustain Uber. He said it might not be easy to recruit drivers who had P-licences to carry passengers, and the cost to get this licence was likely to be a drawback. 'There's probably a need for it Friday-Saturday nights, but it's sporadic at the best of times, with people wanting to get to the clubs and so forth and then just wanting to get home,' Lankshear said. 'That's your big demand periods, and the rest is average. Certainly, I can't see it.' EcoKabs spokesman Jack Savage also had mixed views. 'In terms of EcoKabs being fully 100% community-based, Uber would be a great asset to Gisborne only in the peak hours of 11pm to 3am on Friday and Saturday nights,' Savage said. 'Gisborne has been notorious for not being able to get taxis inside this window for a very long time. This is why EcoKabs Gisborne is increasing its fleet to six cabs. 'EcoKabs tries to keep our wait times in and around the 20-minute mark, but obviously, in the peak times, we can be quite stretched. It is important for us to ensure that our community gets home safely, so in that sense, Uber may be an asset. 'In terms of sustainability, there is a very fine balance to ensuring that we achieve this, given our population of around 51,000. Every service provider here in Gisborne requires sustainability seven days per week and not just in the peak times, so in that sense, trying to get a business model to be sustainable in our region in our economic climate is going to be really tough. 'Out-of-town taxi companies have not done themselves any favours with the locals here in Gisborne around the R and V [Rhythm and Vines New Year festival] period. They have come into our region and blatantly ripped off our local communities, so that is going to be a challenge for them to be accepted by our community.' Chris Lankshear, of Gisborne Airport and City Taxis, was unsure if Gisborne's population could sustain a service like Uber. Photo / Uber The Gisborne Herald asked AA New Zealand what impact the app's launch could potentially have on reducing drink-driving. 'There are many factors that influence drink driving beyond whether Uber is available or not, but more transport options are always a good thing,' AA Hawke's Bay District Council chairman David Murray said. 'We hope that people in Gisborne choose to use this service or a taxi if they've been drinking and haven't already lined up a sober driver to get them home. 'Uber has provided a valuable alternative transport option in Hawke's Bay for some time now, and it's particularly useful during the outdoor summer event season, which both Hawke's Bay and Gisborne are renowned for,' he said.
NZ Herald
3 days ago
- NZ Herald
Infratil and Ebos help drive NZ stocks higher
Late in the New Zealand trading day, Australia's S&P/ASX 200 was down 43.10 points at 8,666.30. The index has lost 1.04% for the last five days, but sits just 1.25% below its 52-week high. The main influences on the local S&P/NZX50 index were infrastructure investor Infratil, up 26c or 2.3% at $11.45, and medical supplies distributor Ebos, up 41c at $41.17. On the downside, utilities software provider Gentrack dropped by 61c or 5.5% to $10.52 after announcing it had been informed by an Australian customer it was no longer in the frame for replacing the customer's current platform. 'Whilst the financial impact of this does not warrant disclosure, out of caution we are providing this update to our investors,' Gentrack said. Salt Funds managing director Matt Goodson said Gentrack had lost out to its main competitor, Kraken, which is part of Britain's Octopus Energy. 'It should not have come as a shock because it was suspected by some, but the actual confirmation of it has seen the stock fall,' Goodson said. Sky Network TV fell 8c to $3.06 after spiking higher earlier in the week on news it would buy the troubled Discovery NZ for $1. Among the minor issues, takeover target Metro Performance Glass, which has a market cap of $9m, gained 0.3 of a cent to 5c. Competitor Viridian NZ's 8c per share offer for Metro Glass is before the Commerce Commission, which today issued a 'Statement of Issues' relating to the application. 'The commission has identified potential adverse competitive effects arising from a loss of competition between Viridian and Metro in glass processing, supply and installation markets where they are close competitors,' it said. Goodson said the commission 'clearly has issues' with Viridian buying Metro Glass because they are the two major players in glass processing and installation. 'I guess the question then is if Viridian is not allowed, what becomes of Metro Glass, given their debt levels,' Goodson said. Looking ahead, annual meetings on Wednesday for Ryman Healthcare and Mainfreight should give investors some clues as to how the two leading stocks are tracking in the current financial year. Later in the week, second-quarter results from Apple, Amazon and Microsoft – part of America's so-called Magnificent Seven – are due out. In the big picture, the ongoing spat between US President Donald Trump and Federal Reserve chairman Jerome Powell continues to be a concern for the financial markets as investors worry about the US central bank's independence. Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.
NZ Herald
3 days ago
- NZ Herald
Amid the doldrums, market likes Sky-TV3 deal
'In line with Sky, we assume DNZ will generate $10 million ebitda [earnings before interest, tax, depreciation and amortisation] from 2028, with limited downside risk, given the $1 acquisition price.' Cost synergies provided a 'credible path to profitability', Craigs said. 'Sky will inherit a working capital tailwind from DNZ's prepaid content, allowing it to expense programming without cash outlay for the first 12-18 months, boosting DNZ's free cashflow contribution to a slight positive.' Sky is confident cost synergies can enable a $20m improvement in ebitda over the next three years. Craigs maintained its 'overweight' recommendation on Sky, with a target price of $3.63. Forsyth Barr said it looked like a sensible deal for Sky TV shareholders. 'Consolidating legacy media makes strategic sense from both a revenue and cost perspective,' the broker said. 'Sky TV's offering to advertisers as well as content providers will have strengthened meaningfully.' Forsyth Barr retained its outperform rating with an increased price target of $3.55 (from $3.20). Will rugby be the winner from the Sky TV-TV3 deal? Photo / Photosport Leading rugby writer Gregor Paul also likes the deal. 'In making a $1, debt-free purchase of TV3 and its associated brands, Sky TV has not only made itself the kingpin of a revamped media sector, it has, for the next five years at least, dramatically changed the way Kiwis will be able to consume rugby,' Paul said in his Herald column. Holding pattern The New Zealand sharemarket looks to be in a holding pattern while other markets soar. The S&P/NZX50 Index, which includes dividend payments, has lost about 2.4% in the year to date while the S&P/NZX50 Capital Index, which excludes dividends, fared worse – dropping 3.8% over the same period. 'It's nothing to panic about or be particularly worried about, but it's also nothing to be excited about for investors,' Craigs Investment director Mark Lister said. 'And the housing market probably looks quite similar.' 'It's been a very lacklustre year. 'It has not fallen out of bed, but it hasn't really gone up either – down six out of the past seven months. 'Whether you've been in New Zealand shares, whether you've been in New Zealand property, or whether you've been in commercial property, they've all been pretty flat to slightly down, which is in contrast to what we've seen internationally.' So far this year, the UK market has gained 10%, the US 7%, Australia 6%, Europe 8% and emerging markets up 16%. Lister said last year reaffirmed to investors the importance of international exposure. 'If you had been too hunkered down in New Zealand, you would have left money on the table, and it's been the same again this year.' Interestingly, New Zealand bonds have actually done better. 'So the boring stuff has performed better than the more exciting stuff in New Zealand, at least this year,' Lister said. 'And you've been better off if you've gone overseas, in terms of investing, so we're still waiting for that recovery, both in the housing market and in the sharemarket.' Expensive CBA? Commonwealth Bank of Australia (CBA), Australia's largest listed bank and the owner of ASB in New Zealand, has been a thorn in many active managers' portfolios for a while, Fisher Funds portfolio manager – Australian equities Robbie Urquhart said. It has the largest weighting in the ASX200 index, and its share price has had a stellar run, returning over 50% in the year to June 30. 'The problem for many active managers is that they've held CBA at a lower weighting than its index weight (over 10% of the index),' Urquhart said. 'So this share price performance has been a big headwind to overcome for managers seeking to 'beat the market'.' Urquhart said CBA is 'unequivocally well run'. 'The reason fund managers have been underweight largely comes down to valuation. 'CBA's earnings growth has been anaemic, and its share price move has been largely about multiple expansion.' In other words, CBA has become expensive. The big change we've seen on the ASX this month is that CBA's share price performance has reversed, Urquhart said. Buoyed by rising commodity prices, easing trade war concerns and talk of potentially large infrastructure projects in China, the beleaguered mining and resources companies have finally sprung to life. Large, diversified miners BHP and Rio Tinto have returned 14% and 12% respectively in July thus far, strongly outperforming the index. In contrast, CBA has been the casualty – falling 6%. 'This is suggestive of Australian investors selling CBA to fund buying in resources names,' Urquhart said. 'The big question is whether this is temporary, or the start of a more enduring trend.' As the reporting season nears, all eyes will be on the results from Aussie heavyweights CBA, BHP and Rio Tinto. 24-hour trading? London Stock Exchange Group is weighing up whether to launch 24-hour trading as bourses race to extend access to stocks amid growing demand from small investors active outside normal business hours, the Financial Times reports. The group is looking into the practicalities of increasing its trading hours, according to people familiar with the situation, from the technology required to regulatory implications, the paper said. Outlook Looking ahead, Wednesday has annual meetings for Ryman Healthcare and Mainfreight, and the market will be expecting a heads-up from both companies regarding their expected earnings for the current 2026 financial year. Ryman, which has been beaten up by the market over poor earnings and a couple of big capital raises, has seen its share price improve in recent weeks. Mainfreight – with its strong links to the global economy – will also be closely watched. Later in the week, second-quarter results from Apple, Amazon and Microsoft – a fair whack of America's so-called Magnificent Seven – are due out. Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.
