Market commentaries

WELLINGTON: New Zealand shares inched to a fresh record ahead of today’s big results day, led higher by Vector and a2 Milk Co.

The S&P/NZX50 Index rose 6.63 points, or 0.07%, to 9115.78. Within the index, 21 stocks rose, 21 fell and eight were unchanged. Turnover was $106.8 million.

Vector led the index higher, up 2.7% to $3.37. A2 Milk Co rose 1.8% to $11.13 ahead of its earnings announcement today, while NZX gained 1.8% to $1.12.

Also due to report earnings today are Meridian Energy, which rose 1.3% to $3.25; Trade Me, which rose 0.2% to $4.71; Spark New Zealand, which fell 0.3% to $3.98; and Fletcher Building, which dropped 1.4% to $6.90.

Westpac Banking Corp was the worst performer, down 2.3% to $32.50.

Comvita dropped 0.9% to $5.65. It turned to a fullyear operating profit from a loss a year earlier and said it has a positive outlook for the current financial year as it invests in manuka honey supply. New Zealand’s only listed honey company posted an aftertax operating profit of $9.3 million in the year ended June 30, within its forecast range of $8 millionto$11 million, and marking a turnaround from a loss of $5.5 million in the yearearlier period.

‘‘It was pretty much within expectations, I don’t think there was too much in way of surprises — it was never going to be fantastic,’’ said Grant Williamson, director at Hamilton Hindin Greene.

Mercury New Zealand dipped 0.2% to $3.405. It reported a record $561 million in operating earnings on the back of record generation and high wholesale power prices.

The company, the country’s thirdlargest power and gas retailer by accounts, reported a 27% increase in net profit to $234 million for the year ended June 30, from $184 million a year earlier. Earnings before interest, tax, depreciation, amortisation and changes in financial instruments rose to a record $561 million, up 7% from $523 million a year earlier.

‘‘Not much in way of surprises there, but a very strong result,’’ Mr Williamson said. ‘‘The shareholders will be pretty happy though there has been no strong buying today. They certainly met expectations, maybe slightly exceeded but it’s not enough to get people buying.’’

Pushpay Holdings fell 1.7% to $3.41. The stock has dropped 18% since August 1, when the company delivered firstquarter revenue within guidance and reshuffled its senior management after another abrupt executive exit.

Outside the benchmark index, SeaDragon was unchanged at 3 cents. The struggling fish oil manufacturer is calling on its shareholders to pay a 10% premium to participate in a $14.9 million prorata renounceable offer to help it stay afloat.

Australian shares fell back yesterday, with falls for BHP and the broader mining sector and a retreat in banks and consumer stocks weighing on the market.

The benchmark S&P/ASX200 index was down 60.6 points, or 0.96%, at 6284.4 points AEST, while the All Ordinaries was down 52.1 points, or 0.81%, at 6383.0 points.

The benchmark index slipped back below 6300 points after two days above that mark as global miner BHP posted a writedowndriven 37% drop in fullyear profit to $US3.7 billion ($5.1 billion).

Energy stocks also traded lower a day after the Australian Government stepped back from legislating a commitment to Paris treaty emissions reductions in its signature energy policy.

Australian politics was in uproar as Prime Minister Malcolm yesterday faced down a party room challenge from immigration minister Peter Dutton. — BusinessDesk/AAP