One NZ share surged 20% today

New Zealand's main share index broke a three-day decline after US markets had modest gains overnight and as software company Gentrack jumped 20%.

Thursday, September 30th 2021, 6:50PM

by BusinessDesk

The S&P/NZX 50 Index rose 154 points, or 1.2%, to 13,275.76. Turnover was $220.9 million, higher than usual as investors rebalanced their portfolios at the end of the month.

Australasian markets outperformed other global indices in trading on Thursday, powered in part by soaring prices for gas and coal – both key Australian exports.

Banking and mining stocks rallied on the ASX, dragging most other stocks and the NZ market with them despite 10-year NZ bond yields breaking above 2% for the first time since 2019.

Dual listed stocks posted strong gains: A2 Milk Company rose 4.3% to $6.43, Pacific Edge climbed 3.4% to $1.53, and Westpac Bank was up 3.4% at $27.16.

However, these climbs were blown out of the water by a 20% surge for software company Gentrack which today upgraded its revenue guidance.

The utilities software business lost some important customers at the end of 2019 and was forced to downgrade its earnings multiple times. Shares in the stock plummeted and it was ultimately relegated out of the NZX 50 index.

Today, it told investors to expect earnings in the current year to be $12m. This is $2m higher than previously indicated – as the company wins new business and expands into managed services.

After upgrading 2021 revenue expectations to $105m, Gentrack also said it anticipated group revenue in the 2022 financial year, which begins in November, will be higher again.

Shares in the company jumped 20% to $1.85, having plummeted almost the same amount since September 17 as investors worried the energy crisis in the UK would lead to more collapses in its fragile market.

Summerset said it had bought its fifth site in Melbourne but this one is in the suburbs, rather than on the city fringes as its other sites are, and it is also much smaller at 1.83 hectares. Shares in the retirement village provider rose 1.3% to $15.19

Hallenstein Glasson shares dropped 1% to $6.95 after the retailer applied for rent relief from all landlords for the periods the stores were unable to trade, and confirmed it remains

The NZX listed firm reported a net profit of $33.3m, an increase of 20% on last year’s $27.8m, with sales up to $351 million in the year ended August, on the strength of online sales.

Steel & Tube Holdings fell 2.8% to $1.03 as lockdown disrupted a strong first quarter which saw sales up 29% before being pushed to zero.

Since Auckland moved to alert level three, sales had progressively recovered and the company's nationwide operations are fully operational again.

The kiwi dollar continued to slide and was trading at 68.74 US cents at 3pm in Wellington, down from 69.46 cents yesterday.

“The NZD gave up over 1% on the day as investors chased USD gains amid haven plays and month-end rebalancing,” said currency exchange OFX in a note.

The currency exchange note said the US dollar index was up almost three-quarters of a percent as uncertain economic growth and concerns around the US hitting its debt ceiling drove investors toward haven assets.

Rising global bond yields and a delayed reaction to the Fed’s hawkish commentary also helped underpin US dollar gains.

Tags: Market Close

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