NZ sharemarket climbs as results flow in
New Zealand shares rose amid a flurry of company earnings. A2 Milk hit a 12-month high after beating analysts’ expectations, while Spark New Zealand, Fletcher Building and Meridian Energy fell.
The S&P/NZX50 index increased 25.18 points, or 0.3 per cent, to 9249.44. Within the index, 20 stocks rose, 26 fell, and four were unchanged. Turnover was $169.1 million.
Four of the country’s 10 biggest listed companies reported first-half earnings with mixed results. A2 came in ahead of forecast, delivering a 55 per cent increase in first-half profit. The stock jumped 10 per cent to $14.22 on a volume of 3.7 million.
Matt Goodson, managing director at Salt Funds Management, said the result beat estimates on all lines, even with increased marketing expenditure. “It looks like a very solid result and, for the uber-bulls on it, there were signs of progress in the very large American market with liquid milk,” Goodson said.
A2 supplier Synlait Milk rose 4.2 per cent to $9.99. Fonterra Shareholders’ Fund units were unchanged at $4.62 after Fonterra said it plans to supply a2 in the 2019/20 season. Fonterra’s closed farmertraded shares fell 0.2 per cent to $4.63. In contrast to a2, Fletcher Building dropped 5.7 per cent to $4.98, the biggest decline on the index, after posting a smaller decline in first-half earnings than predicted. Spark was the most traded stock with 6 million shares trading hands.
The stock declined 3.4 per cent to $3.895 after posting a 5.6 per cent decline in first-half profit on the lack of dividend from Southern Cross Cable. Meridian Energy fell 3.8 per cent to $3.58 on a volume of 1.1 million shares. It reported record first-half earnings, but the performance of its Australian unit was below expectations, Goodson said.
Ebos Group decreased 1.4 per cent to $21.65 on a busier than usual volume of 76,000 shares. Its first-half profit slipped 4 per cent. Sky Network Television
dropped 4 per cent to $1.68, a new low, with a lighter than average 344,000 shares changing hands. Precinct Properties New Zealand fell 3.3 per cent to $1.485 after completing a bookbuild for a $130m placement to institutional investors at $1.48. Heartland Group rose 2.3 per cent on a volume of 2.4 million shares. Air New Zealand fell 0.8 per cent to $2.65 on a volume of 1.7 million shares and Kiwi Property Group increased 0.7 per cent to $1.42 on a volume of 1.2 million. Outside the benchmark index,
Maritime Marsden Holdings was unchanged at $5.25 after reporting a 16 per cent decline in first-half profit on weaker cargo volumes through Northport.