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
15 hours 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
a day 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.
NZ Herald
2 days ago
- NZ Herald
Attention goes offshore as New Zealand sharemarket steady
Appointed chief executive in April 2017, Peterson had helped guide the market operator to new heights, with NZX's operating earnings having increased from $28.6m to $48.5m during his tenure. In trade news, the United States and Japan reached a deal that included lowering President Donald Trump's tariffs on Japan's crucial car sector. The US lowered tariffs on some Japanese goods to 15%, down from the threatened 25%. In return, Japan pledged to invest US$550 billion in the US, Trump said on social media. Devon Funds Management head of retail Greg Smith said markets would be watching Trump's visit to the US Federal Reserve with interest, considering it's the first time in nearly two decades a sitting president has made the visit. 'It's more pressure for [Federal Reserve chairman] Jerome Powell. Markets have been aware of that, but then they've dismissed it as Trump has said he's got no plans to fire him,' Smith said. As for the earning season in the US, Google parent Alphabet reported quarterly profits that topped expectations, while Elon Musk's Tesla saw its revenue fall 12% – the sharpest decline in at least a decade. 'They're still copping a lot of competition from companies with more affordable EVs, then you've got the effect of boycotts on Tesla. It's been a pretty bad performance this year. 'Maybe there might be a bit more focus from Elon Musk.' Looking back home, Smith said Google's performance in cloud and data centre technologies could benefit Infratil, which operates as a landlord for some data centres in New Zealand. Infratil's share price rose 2c or 0.18% to $11.19 after 582,097 shares traded hands to the value of $6,533,194.59. Elsewhere, Air New Zealand rose half a cent or 0.86% to 58.5c on high volume, with 1,981,843 shares trading hands. Ebos Group also rallied 98c or 2.46% after $5,658,363.95 worth of shares were traded, lifting its price to $40.76. International markets Wall Street stocks advanced on Wednesday with the Dow logging strong gains and the S&P 500 closing at a record for the third time in a row. The Dow Jones Industrial Average added 1.1% to 45,010.29 while the broad-based S&P 500 Index bounced 0.8% to 6358.91. The tech-focused Nasdaq Composite Index climbed 0.6% to 21,020.02. The gains came after Trump announced on Tuesday that Washington had reached tariff agreements with Japan and the Philippines, and as officials signalled optimism in trade talks with the European Union. German Chancellor Friedrich Merz voiced optimism that EU and United States negotiators are making progress in talks to resolve a transatlantic trade row. Several EU diplomats also said the bloc was examining a US proposal involving a baseline tariff of 15% and sectoral carve-outs still to be decided. – Additional reporting AFP Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
