New Zealand shares bucked the trend across Asia as they rallied on an upbeat end to earnings season and as index reweightings drove massive volumes at the end of the day.
The S&P/NZX 50 index rose 60.55 points, or 0.5%, to 12,601.42. Across the main board, turnover was $1.49 billion, with Contact Energy and Mercury NZ attracting large volumes as they switched positions on the MSCI global standard index. Contact rose 2.7% to $9.25 with 70.8 million shares changing hands, while Mercury fell 1.6% to $5.59 on a volume of 84.2 million.
The benchmark index ended February down 3% after Ryman Healthcare’s $1 billion capital raising prompted investors to sell holdings of other companies to participate in the discounted offering earlier this week, while Spark New Zealand shed almost a fifth of its value when reporting an unexpected downgrade to its earnings outlook. Ryman gained 0.7% to $3.08 with 4.2 million shares traded, while Spark was unchanged at $2.26 on a volume of 5.6 million.
Stocks across Asia followed Wall Street lower as US President Donald Trump announced plans to ramp up tariffs on China, and Nvidia’s better than expected earnings failed to bolster investor sentiment. Australia’s S&P/ASX 200 index was down 1.3% in late trading, while Japan’s Nikkei 225 dropped 3.4% and Hong Kong’s Hang Seng declined 2.3%. Still, US futures were pointing to a 0.2% gain for the S&P 500.
Fisher & Paykel Healthcare fell 1.5% to $34.08 as the latest tariff comments weighed on companies potentially exposed to the regime. The kiwi dollar fell to 56.03 US cents at 5pm in Auckland from 56.40 cents at 7am, and down from 56.83 cents yesterday.
Ending on a high
Still, earnings season ended on a relatively upbeat note, with Port of Tauranga upgrading its earnings guidance as it gained 2.7% to $6.85 and Summerset Group Holdings navigating the tough economic climate without having to tap investors for more funds as it rose 5.5% to $12.34.
“It’s been a pretty challenging results season and companies that have a domestic focus have shown how tough things are,” said Greg Smith, head of retail at Devon Funds Management. “Companies that export have been a bit better, such as a2 and Fonterra’s update.”
The a2 Milk Co fell 2% to $8.84, and Fonterra Shareholders’ Fund units declined 1.2% to $5.10.
Vista Group International posted the biggest gain on the NZX50, surging 14% to $3.81 after reporting record annual revenue and signalling more growth in 2025.
Retailers were mixed after the ANZ’s consumer confidence survey edged higher in February. Warehouse Group rose 3.1% to 99 cents, while Hallenstein Glasson Holdings fell 1.8% to $8 after reporting a 7.7% increase in first-half sales. KMD Holdings dropped 6.2% to 38 cents, posting the biggest decline on the NZX50.
Outside the benchmark index, Pacific Edge soared 116% to 13.6 cents after making headway in the US with the inclusion of its Cxbladder Triage cancer diagnostic tool in the American Urological Association’s clinical guidelines.
Chorus declined 0.6% to $8.36 after confirming new field service agreements with its two current suppliers, Universal Communications Group and Downer NZ in deals worth about $1 billion.
Metro Performance Glass fell 5.5%, or 0.3 of a cent, to 5.2 cents after walking away from the 8 cents per share non-binding offer from private equity firm Crescent Capital, which owns competitor Viridian NZ.
Delegat Group fell 2% to $4.80 after reporting a 25% decline in first-half operating profit. The winemaker doesn’t typically declare an interim dividend.
Reporting by Paul McBeth. Image from Maxim Hopman on Unsplash.
