by BusinessDesk
The S&P/NZX 50 Index closed down 0.21% or 27.52 points, falling to 13,153.79 after 33.4 million shares worth $143m traded.
The S&P/NZX 20 index closed at 7,579.04 points, down 0.09%, while the S&P/NZX 10 index ended the day at 12,640.38, falling 0.52%.
There were 75 gainers and 56 decliners on the main board.
Fonterra the headline
Hamilton Hindin Greene investment adviser Jeremy Sullivan said that Fonterra was the story of the day, noting its annual result was stronger than the headline profit suggested.
Fonterra reported a net profit of $1.079 billion for the July 2025 year, down 4.3% while maintaining its milk price forecasts.
“Operating profit rose, cash returns stepped up, and milk payments to farmers reached $15.3 billion. The net profit decline reflects a change in tax treatment rather than a fall in demand or execution,” Sullivan said.
“Guidance for FY26 at 45–65c is softer as earnings normalise and the portfolio is prepared for the planned consumer divestment.”
Sullivan said that FY26 appears to be a transition year for the business, as the portfolio is simplified and new capacity is established.
“If product mix upgrades and capacity projects land on time, earnings can rebuild toward FY25 levels in about three years.”
The Fonterra Shareholders’ Fund’s unit price fell 1.14% or 9c to $7.81 after 135,302 units were traded on turnover worth $1m.
Fisher & Paykel dips
Sullivan said that the wider NZX was dragged down by the top stock, Fisher & Paykel Healthcare, which gave back gains it had made on Wednesday.
Its share price fell 4.02% or $1.52 to $36.28 on turnover worth $35m.
a2 Milk also had its share price decline, falling 10c or 1.03% to $9.65.
Infratil on up
Elsewhere, Infratil continued to rise following its announcement late on Wednesday that CDC Data Centres had secured approximately 100MW of new contracted capacity.
Infratil’s share price increased 2.10% or 26c to $12.65 on turnover worth $16.3m.
Wall Street
Wall Street stocks fell for the second consecutive session on Wednesday, as analysts cited concerns about elevated equity valuations and awaited key economic data later in the week.
“We’ve given up some ground today,” FHN Financial’s Chris Low said. “It really does look mostly like people are just taking some cash off the table or repositioning.”
The Dow Jones Industrial Average finished down 0.4% at 46,121.28.
The broad-based S&P 500 fell 0.3% to 6637.97, while the tech-rich Nasdaq Composite Index shed 0.3% to 22,497.86.
While all three indices finished at fresh records on Monday, market watchers have said equities could be poised to retreat after a heady run, especially since late September is traditionally a weak patch for the market.
Low also pointed to worries that Fed policymakers may back away from additional interest rate cuts.
Key data points in the coming days include Thursday’s jobless claims data and Friday’s personal consumption price data, a closely watched inflation metric.
– Additional reporting AFP
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