by Paul McBeth
New Zealand’s S&P/NZX 50 index staged a third late rally in a row to end on the green side of the ledger again, with Freightways, Napier Port and Mainfreight among the day’s gainers after US President Donald Trump extended the ceasefire with Iran as the sides struggle to return to the negotiating table.
Ebos Group was one of the bigger drags on the bourse after warning of dearer fuel and packaging costs threatened to dent its bottom line, while the Ministry of Business, Innovation and Employment’s latest update showed New Zealand’s supplies dipped on Sunday, but not to concerning levels.
Ryman Healthcare rose for a third day after Forsyth Barr analysts upgraded their rating on the beat-up stock, saying it’s trading near a record-low earnings multiple, while Mercury NZ gained after raising its earnings guidance.
And KMD Brands resumed trading after the bookbuild to make up the shortfall of rights not taken up in the $65.3 million capital raising, with the retailer posting the steepest decline, while holding above the heavily discounted offer price.
Three in a row
The NZX50 increased 13.27 points, or 0.1%, to 12,945.6, with 23 stocks gaining, 19 declining, and eight unchanged. Turnover across the main board was a muted $110.2 million, of which Auckland International Airport accounted for $16.7 million as the national gateway increased 0.9% to $8.22.
Markets across Asia were generally softer as investors remain unnerved by the Middle East conflict, with Wall Street dipping on news that US vice president JD Vance was delaying his trip to Pakistan for peace talks, with Iran reluctant to participate.
President Trump extended the ceasefire as the request of Pakistan, saying Iran’s leadership remains fractured. Still, the blockade on Iran continues, and the Polymarket prediction market is pricing a 47% chance of a lasting peace by the end of May and a 63% chance by the end of June.
“Among the news, markets continue to stay in a holding pattern, showing resilience amid developments in the conflict, with investors waiting for negotiations to play out on Iran’s timeline, while profit-taking is in place,” Devon Funds Management said in a note.
Australia’s S&P/ASX 200 index was down 1.2% in late trading, while Japan’s Nikkei 225 index nudged up 0.1% and Hong Kong’s Hang Seng dropped 1.4%. US futures were pointing to a 0.5% gain for the S&P 500 when trading opens on Wall Street.
The kiwi dollar was unchanged from yesterday at 59.06 US cents at 5pm in Auckland.
A late turn
New Zealand’s market spent much of the day on the red side of the ledger before a late rally dragged it back into positive territory.
Transport and logistics firms led gains on the benchmark index, with Brent crude oil futures dipping 0.1% to US$98.41 a barrel at 5pm.
Freightways led the NZX50 higher, up 4.1% at $12.60, while Napier Port advanced 3.5% to $3.59 and Mainfreight climbed 1.9% to $60.30.
Vista Group International increased 2.2% to $1.85.
The power companies did a lot of the heavy lifting for the index, with Meridian Energy up 1.8% at $5.69, while Mercury climbed 1.9% to $6.60 after the electricity generator-retailer lifted earnings guidance by $50 million to $1.05 billion for the June year, on increased expectations for hydro and new generation.
Genesis Energy rose 0.9% to $2.29 and Contact Energy advanced 1% to $9.39.
Ryman increased 0.5% to $2.10 after Forsyth Barr analyst Will Twiss lifted the retirement village operator’s rating to ‘outperform’, saying it’s trading at all-time lows on a price-to-earnings earnings multiple.
“There is no straightforward or simple way to value Ryman,” Twiss said in a note to clients. “Nevertheless, in the low $2 range we believe valuation screens attractively through several lenses and upgrade our recommendation to ‘outperform’ from ‘neutral’ with an unchanged target price of $2.95.”
Ebos was one of the bigger drags through much of the day, falling 3.4% to $21.50 after cutting its earnings guidance to between A$610 million and A$620 million from a previous forecast of A$615 million-to-A$635 million on rising fuel and packaging costs.
KMD Brands posted the biggest decline on the NZX50, falling 4.5%, or 0.3 of a cent, to 6.4 cents as it resumed trading after completing its $65.3 million capital raising at 6 cents a share. Sub-underwriters picked up about a quarter of the stock in the shortfall bookbuild after retail investors took up 52% of their entitlements.
The retailer was the most heavily traded stock with a volume of 2.8 million shares changing hands.
Air New Zealand slipped 1.1% to 44.5 cents after announcing the departure of chief financial officer Richard Thomson in late August.
Airlines were broadly softer, with Qantas Airways and Virgin Australia weaker on the ASX after Deutsche Lufthansa cut routes and flights in response to rising jet fuel costs and United Airlines said it plans to trim capacity for the rest of the year.
NZX was unchanged at $1.40 after the stock market operator said CFO Graham Law will act as chief executive while the board continues to look for a permanent replacement. The search has been delayed by the ASX also recruiting for a CEO.
Outside the benchmark index, NZME rose 0.9% to $1.10 after telling shareholders ad revenue is tracking 3% higher than a year earlier in the first four months of the year and that profitability improved after the 2025 cost-cutting drive.
Paul is a staff writer for Good Returns based in Wellington.
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