New Zealand’s S&P/NZX 50 index clawed back Monday’s decline as Fisher & Paykel Healthcare went into its annual meeting at new highs, with trans-Tasman healthcare companies on the rise after ASX-listed Ansell beat earnings expectations. Meanwhile, SkyCity Entertainment Group extended its gains in heavy trading after confirming Australian media reports that it’s attracted potential suitors, saying the indicative offers it received didn’t pass muster to take any further. Local companies reporting delivered mixed results, with Vulcan Steel, NZME and Move Logistics all on the red
side of the ledger, while Tourism Holdings advanced after declaring a bigger dividend than analysts had anticipated. And Heartland Group Holdings rose after the High Court turned down a bid to temporarily halt Toi Foundation’s proposal to sell TSB Bank to the NZX-listed company, although Kiwibank has emerged as a rival suitor. Riding high The NZX 50 rose 110.84 points, or 0.8%, to 13,992.72, with 27 stocks gaining, 20 falling, and three unchanged. The S&P/NZX 20 index futures contract for September was untraded, while the
NZX 20 advanced 0.8% to 7,854.28. Turnover across the main board was $131.9 million, of which F&P Healthcare accounted for $20.4 million as it climbed 1.5% to $44.90. The medical device maker provided a strong tailwind for the NZX 50, reiterating its upgraded guidance at today’s annual meeting, and saying it planned to expand its manufacturing footprint in China to complement investment in other regions. Asian stock markets were mixed as tech companies extended their decline ahead of Nvidia’s earnings on Wednesday in the US,
with South Korea’s Kospi down 0.2% in late trading, while Hong Kong’s Hang Seng fell 0.3%. Australia’s S&P/ASX 200 index was up 0.5% in late trading, with miner BHP hitting a fresh record, and healthcare stocks buoyed by Ansell’s stronger-than-expected earnings. Australian insurers Insurance Australia Group and Suncorp rallied 4.5% and 7.1% respectively after the Financial Times reported Japan’s Tokio Marine was considering making a bid for one of them, with Suncorp said to be the preferred target. NZX-listed insurer Tower nudged up 0.3% to
$1.87. The kiwi dollar was little changed through the day, trading at 59.56 US cents at 5pm in Auckland from 59.75 cents yesterday, as economists eye the Reserve Bank’s policy review next week, with the interest rate curve flattening as two-year swaps rose 2 basis points to 3.67% and 10-year swaps dipped 1 point to 4.42%. “The market is pricing over a 90% chance of a hike at this meeting but is on the fence as regards a follow-up in late October,” ANZ New Zealand
chief economist Sharon Zollner said in a note. “We could therefore see a marked reaction on the day should the RBNZ give any firm hints re that meeting.” The A2 Milk Co led the NZX 50 higher, up 5% at $8.45, while Vista Group International advanced 3.3% to $2.79 and Gentrack gained 2.7% to $4.26. Chasing deals Heartland rose 2.4% to $1.29 after the High Court turned down an application for an interim injunction to halt the Toi Foundation’s proposed sale of TSB Bank to
the listed financial services firm. Separately, BusinessDesk reported Kiwibank parent, Kiwi Group Capital, had made a superior offer for TSB. Meanwhile, SkyCity climbed 1.5% to 67.5 cents on a volume of 5.1 million shares after the casino operator confirmed reports from across the Tasman that it had attracted interest from potential suitors, saying it rejected two separate indicative offers of 70 cents per share and 75 cents as not reflecting the company’s underlying value and having problematic conditions. The casino operator confirmed Oaktree Capital as
one of the suitors, while the Australian Financial Review’s Street Talk column reported Sydney billionaire Sam Arnaout’s Iris Capital – which has agreed to buy Skyline’s Christchurch casino – was the other unnamed bidder. Tourism Holdings advanced 2.1% to $2.88 after the rental campervan operator returned to profit, lifting underlying earnings 34% and declaring a bigger final dividend than analysts predicted. THL said it expected its two competing suitors to complete their due diligence in six weeks. Travel software firm Serko posted the biggest decline
on the day, falling 2.8% to $1.545. Vulcan Steel dropped 2.3% to $6.25 after the metals company declared a smaller dividend than expected, with earnings growth in line with analysts’ forecasts and the outlook mixed on both sides of the Tasman. Chorus fell 1.4% to $8.92, extending its decline after brokers cut their target prices on the broadband network operator, with Forsyth Barr analyst Ben Crozier saying guidance for the current financial year missed his expectations. He trimmed his price target by 45 cents to
$9.50, while keeping a ‘neutral’ rating on the stock. “Chorus is currently moderately underearning its maximum allowable revenue and needs to steadily increase prices,” Crozier said in a note to clients. “We had expected another year of mid-single-digit increases, but Chorus has proposed a circa 3% increase, likely to reduce the negative mix shift of the last two years.” Outside the benchmark, NZME slipped 0.8% to $1.11 after the media company reported first-half earnings growth of 11%, falling short of Forsyth Barr’s forecast for 19%,
while Move Logistics fell 4.8% to 20 cents as it returned to positive annual earnings, while noting the uncertain economic outlook. Warehouse Group climbed 5.3% to 69 cents after the retailer said it expected to report annual earnings of between $20 million and $24 million, more than analysts’ forecasts. The Smart Bitcoin exchange-traded fund climbed for a sixth day, up 3.9% at $2.905, following the cryptocurrency higher as Bitcoin climbed above US$80,000 for the first time since mid-May. Reporting by Paul McBeth.
NZX 50, Fisher & Paykel Healthcare, SkyCity, Heartland Group Holdings, Toi Foundation, TSB Bank, Kiwibank, Oaktree Capital, Iris Capital, Tourism Holdings, Vulcan Steel, Chorus, ANZ New Zealand, Sharon Zollner