Freightways edges up on ASX-listing plans
Diversified logistics company Freightways' plan to dual-list on the Australian stock exchange was the biggest news to hit New Zealand’s index today as the local market chewed over the cash rate hike that came out of the Reserve Bank of Australia yesterday.
Wednesday, February 8th 2023, 6:24PM
by BusinessDesk
The S&P/NZX 50 index rose 83 points, or 0.7%, to 12,211.96. Across the main board, 44 stocks fell and 83 rose. Turnover was $166.8 million.
“With Australia now representing a more significant share of Freightways’ activities, a dual listing is expected to align with Freightways’ strategy,” the company said in a statement.
Devon Funds head of retail Greg Smith said the dual-listing made sense for Freightways as many of its acquisitions had been recently made in Australia and it was continuing to perform well operationally.
Freightways was up 1.8% to $9.57 by the end of the day. The company also announced it was going to change its name to Freightways Group Limited and its ticker code will change from “FRE” to “FRW” with effect from when the market opens on March 1. Overnight, the Global Dairy Trade (GDT) auction took place with the index lifting 3.2%, boosted by a 3.8% gain in whole milk powder prices.
Synlait Milk was up 1.7% to $3.54, Fonterra Shareholders' Fund Units rose 1.3% to $3.24 and A2 Milk edged down 0.3% to $7.53.
Whole milk powder (WMP) – the biggest influence on Fonterra’s milk price – sold at an average of US$3,329 (NZ$5,288) a tonne, with the lift adding to the view that WMP prices were expected to increase into the rest of the year.
“Significant price gains across each contract period highlights that buyers were chasing product across the board,” the NZ stock exchange's (NZX) dairy insights manager, Stuart Davison, said this morning.
A judgment from late January revealed yesterday that A2 Milk had successfully sought a stay in a representative case taken against it by NZ shareholders.
A2 is being sued in NZ and Australia by shareholders who allege the company made misleading or deceptive statements between August 2020 and May 2021 regarding its 2021 financial year forecasts.
Winton Land was up 4.7% to $2.01 in light trading. The residential development company was forced to cut back its full-year earnings guidance by roughly 20% yesterday after revealing it had already lost a massive 83% of its summer earthwork season due to the North Island flooding.
It had also incurred water damage to pre-ordered supplies which would delay the delivery of pre-sold projects.
Smith said listed companies within the property and construction sectors who had been affected by the floods would also start following in Winton’s footsteps and updating the market on flooding damages to their businesses.
Third Age Health Services fell 4.5% to $1.50 while Radius Residential Care was up 3.3% to 31 cents. Ryman Healthcare shares were flat at $6.30 and Summerset Group also edged up to $9.84.
Ebos Group was up 1.2% to $43.50.
The NZ dollar was trading for 63.23 US cents at 3pm in Wellington, down from 63.15 US cents at the same time yesterday.
| « Earnings season countdown begins as RBA hikes 25 basis points | NZ market doesn't like Mainfreight's update » |
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