tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, December 7th, 8:03AM

Investments

rss
The Markets

NZX50 continues to slump despite some upbeat results

The New Zealand sharemarket wasn’t in a sympathetic mood, falling more than one percent despite four of the leading stocks producing solid financial results.

Monday, August 21st 2023, 6:31PM

by BusinessDesk

The S&P/NZX 50 Index was on a slide all day and closed at 11,458.69, down 152.5 points or 1.31%, the third biggest single-day fall this year. The index is at its lowest level this year, and the gain over the past eight months has been wiped out.

There were 42 gainers and 80 decliners over the whole market on volumes of 42.62 million share transactions worth $117.39m.

Greg Smith, head of retail with Devon Funds Management, said there is an underlying nervousness about the local market.

“The company results, even if they are solid, are coming out in an environment where there is anxiety around the Chinese economy and concern about rising bond yields. This has manifested into skittish markets, here and overseas,” he said.

Global marketer a2 Milk plunged 67c or 12.52% to $4.68, Chorus declined 24c or 2.86% to $8.15, and Mercury Energy was down 24c or 3.64% to $6.35 even though their earnings were in line with market expectations – and, in a2 Milk’s case, slightly above.

Freightways, talking growth in Australia, fared better by gaining 1c to $8.29.

For the year ending June, a2 Milk’s revenue increased 10% to $1.59 billion, operating earnings (Ebitda) were up 11.8% to $219.3m, and net profit rose 26.9% to $155.64m.

Infant milk formula sales were more than $1.1b, with a 27.8% gain in China label sales surpassing the English label for the first time. The infant milk formula market has declined 14%, making a2 Milk a top-three gainer.

Smith said there was disappointment over a2 Milk’s forecast of low single-digit growth and the fact it wasn’t paying a dividend or making a share buy-back despite having $800m in cash.

“They are still bullish about the opportunity in China and gaining market share, but the market is declining,” Smith said. “A2 is at the coalface of the Chinese economy, and there are some cracks appearing. This reinforces the amount of uncertainty around China,” Smith said.

Solid results do not impress

Chorus, intent on becoming an all-fibre digital infrastructure company, reported steady revenue of $980m and a 60.9% fall in net profit to $25m for the year ending June.

Operating earnings (Ebitda) were $682m, up $22m, and guidance for the 2024 financial year is $680m-$700m. Chorus is paying a final dividend of 25.5c a share on Oct 10.

Mercury had a 24.8% increase in annual revenue to $2.73b and a 78% fall in net profit to $103m, though last year’s included the gain made on selling its Tilt Renewables shareholding.

Operating earnings (Ebitdaf) increased $260m to $841m, and 2024 financial year guidance is $835m. Mercury is paying a final dividend of 13.1c a share on Sept 29. Mercury’s annual generation increased by 21% (wind was up 16%) because of record hydro inflows.

Freightways reported a 28.5% increase in revenue to $1.12 billion and net profit of $75.29m, up 7.3% for the year ending June. Operating earnings (Ebitda) were $214.9m, up 14.8%, and Freightways is paying a final dividend of 26c a share on Oct 2.

Freightways’ earnings included nine months of trading from courier business Allied Express, and revenue surged 143% in Australia compared with NZ’s 6%.

Freightways is planning a dual listing on the ASX, saying Australia is a larger and growing part of its activity, and it is likely that the pace of growth there will surpass that of NZ.

Skellerup Holdings and Spark both announced solid results last week and were down 25c or 5.59% to $4.22 and 6c to $5.02, respectively.

Auckland International Airport was down 13c to $8.12; Contact Energy decreased 16c or 1.91% to $8.22; Ebos Group shed 49c to $34.10; KMD Brands declined 3c or 3.49% to 83c; and Vulcan Steel was down 15c or 1.79% to $8.22.

In the property sector, Argosy shed 4c or 3.42% to $1.13; Precinct declined 2.5c or 1.95% to $1.255; Property for Industry was down 3c to $2.34; and Vital Healthcare Trust declined 4c or 1.7883% to $2.27. However, Goodman Trust was up 4c or 1.78% to $2.21, and Investore rose 5c or 3.79% to $1.37.

SkyCity was down 5c or 2.2% to $2.22; Restaurant Brands declined 21c or 4.4% to $4.56; and Pacific Edge slipped 1.9c or 14.62% to 11.1c.

Amongst the gainers, Fisher and Paykel Healthcare was up 11c to $22.49; Genesis Energy increased 7.5c or 3.04% to $2.545; AFT Pharmaceuticals added 8c or 2.32% to $3.53; Gentrack collected 10c or 2.34% to $4.38; Carbon Fund improved 4c or 2.26% to $1.81; and Millennium & Copthorne Hotels NZ rose 8c or 4.35% to $1.92.

Tags: Market Close

« Wary investors cast gloom over the NZ sharemarketSolid results brought an end to days of decline for NZ sharemarket »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Advisors must take note of supervisor guidelines on AML/CFT
    “When I read this, the following memory plucked a note. Venue was a US financial planning conference maybe 30 years ago. Speaker...”
    1 day ago by Murray Weatherston
  • Partners kills its matrix
    “@Backstage, thanks. I agree there is no relationship to CoFI, though, from a service perspective, I have two other providers...”
    4 days ago by JPHale
  • Partners kills its matrix
    “Partners Life has decided to stop using its COM for advisers as it believes the system may breach the CoFI regulations which...”
    4 days ago by Amused
  • Partners kills its matrix
    “Insurance companies should stick to their lane. They are not advisers and even those that employ advisers should not be crossing...”
    4 days ago by Tash
  • [GRTV] The nitty gritty of Smart’s ETFs
    “Advisors should consider all gateways into investment markets including cheaply priced ETFs to provide access to low priced...”
    5 days ago by Pragmatic
Subscribe Now

AM Update - Your morning business news update

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 ▼5.79 ▼5.49 ▼5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 ▼5.79 ▼5.49 ▼5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance ▼7.90 - - -
Basecorp Finance ▼8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 ▼5.79 ▼5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - ▼5.99 ▼5.89 -
First Credit Union Standard ▼7.69 ▼6.69 ▼6.39 -
Heartland Bank - Online 6.99 ▼5.49 ▼5.39 ▼5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 ▼5.79 ▼5.59 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 6.89 6.59 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 ▼5.75 ▼5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - 6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 ▼6.39 ▼6.39
TSB Special ▲8.64 ▲6.74 ▲6.49 ▲6.39
Unity 7.64 ▼5.79 ▼5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼7.70 ▼5.95 ▼5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.54 5.99 5.89 5.69

Last updated: 6 December 2024 9:11am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com