NZ sharemarket up as Sanford rides the wave

The New Zealand sharemarket was up on Thursday after shares in major companies, including Fonterra, Sanford, and Auckland Airport, performed strongly.

Thursday, May 15th 2025, 6:56PM

by BusinessDesk

The S&P/NZX 50 Index closed up 0.79% or 101.56 points, rising to 12,880.82. Thirty-one million shares changed hands, worth $108.8m

The S&P/NZX20 index closed at 7,627.15, up 0.76%, while the S&P/NZX10 index closed at 1,958.54, up 1.14%.

There were 80 gainers on the main board and 49 decliners.

Top catch

Sanford's share price rose on Thursday following the news that it more than doubled its half-year profit due to good returns for its salmon farming operation.

Sanford’s result was its best in a decade, with revenue rising modestly, margins improving, and cash flow increasing strongly.

Shares in Sanford rose 3.43% to $5.12, up 17c.

Devon Funds' head of retail, Greg Smith, said Sanford was doing well despite its watered-down outlook.

“They said they don’t appreciate the same level of profitability in the second half due to market price pressure and seasonal volumes. But the volume story in this half was quite good,” Smith said.

“Its balance sheet continues to improve, so more is being paid down. All in all, a pretty good story there and yet another agribusiness that’s doing quite well.”

Fonterra up, butter too

Fonterra also reported a strong day with the Fonterra Shareholders’ Fund unit price rising 1.28% to $6.35, up 8c.

It coincided with new data from Stats NZ, which revealed the average price for 500g of butter was $7.42 in April 2025, nearly $3 more expensive than this time last year.

“Dairy’s been a bright spot for the economy, but I suppose it is also coming at a bit of a cost to Kiwi shoppers.

“It just highlights the cost pressures facing consumers are still there, and because wages aren’t growing as fast as grocery prices.”

Airport shares take off

Shares in Auckland Airport also rose after domestic and international passenger movements increased in April.

Its share price rose 1.32% to $8.06, up 10.5c with 2,071,693 shares trading hands to the value of $16,662,426.33.

“I think obviously there’s been a little bit of a moderation of capacity due to what’s going on with Air New Zealand.

“That probably also goes to the state of the economy as well. People are cutting back, and planes, maybe domestically, aren’t as full as they were. I think that’s just symptomatic of the weakness in the economy.”

Ryman Healthcare’s share price fell 3.64% to $2.38, down 9c.

Global view

Wall Street stocks finished mostly higher Wednesday following a choppy session. Markets are focusing on key US retail sales and inflation data.

Analysts described the indecisive session as reflecting a quiet day for macroeconomic news. Markets soared Monday on a favourable US-China trade announcement before mostly extending those gains on Tuesday.

“Investors are just taking a little bit of a pause after yesterday’s strong gains, and we’re waiting for tomorrow’s macro news,” said Peter Cardillo, of Spartan Capital Securities.

The Dow Jones Industrial Average finished down 0.2% at 42,051.06.

The broad-based S&P 500 edged up 0.1% to 5,892.58, while the tech-rich Nasdaq Composite Index gained 0.7% to 19,146.81.

After stocks tumbled in early April following US President Donald Trump's announcement of sweeping tariff actions, the market has rebounded as Trump has retreated from many of the actions.

– Additional reporting AFP

Tags: Market Close