New Zealand’s benchmark stock index bounced back from its worst day of the year as the attraction of cash dividends stoked demand for companies paying reliable dividends, such as Investore Property.
The S&P/NZX 50 index rose 145.18 points, or 1.2%, to 12,452.46, in its strongest day so far this year. Turnover was $261.5 million across the main board, with 87 stocks gaining and 48 declining.
Investore Property led the market higher, climbing 9.9% to $1.11, clawing back more than yesterday’s 8.2% decline when it shed rights to a 1.63 cents per share dividend.
Argosy Property rose 3.1% to $1 after declaring a third-quarter dividend of 1.66 cents.
“There are parts of the market searching for sustainable returns and are backing the Investores of this world,” said Peter McIntyre, an investment adviser at Craigs Investment Partners.
Michael Hill International was unchanged at 50 cents after the jewellery chain said chief executive Daniel Bracken died overnight after an adverse reaction to a medical treatment for an underlying condition.
Vector was among the day’s biggest gainers, up 4.8% at $3.93 as the Auckland lines company’s long-serving chief executive Simon Mackenzie announced his departure at the end of June, while the company reported a 16% lift in first-half earnings and hiked its dividend to 12 cents per share, more than most analyst we repicking.
Powering gains
Meridian Energy increased 1% to $5.785 after reporting a first-half loss of $121 million on expensive hedging contracts during last year’s winter crunch. Underlying earnings sank 42% and it kept its interim dividend at 6.25 cents per share.
Among other power companies, Contact Energy gained 2% to $8.99, Genesis Energy increased 1.1% to $2.22 and Mercury NZ rose 0.3% to $6.05.
Media group NZME posted the biggest gain on the main board as it surged 15% to $1.20 after signalling plans to spin out its OneRoof real estate listings division. The company reported a first-half loss as it wrote down the value of its publishing assets, while declaring an unchanged final dividend of 6 cents per share, and lighter capital investment in the 2025 financial year.
Stock market operator NZX advanced 3.1% to $1.64.
Scales Corp rose 2% to $4.10 after lifting annual earnings 36% and forecasting more growth this year.
Rural services firm PGG Wrightson jumped 9.5% to $2.19.
KMD Holdings increased 2.6% to 39 cents, with a large trade dominating the retailer’s volumes today as 4.1 million shares changed hands at 38 cents.
Ryman Healthcare declined 0.7% to $3.06 on a volume of 14.3 million shares, carrying on from yesterday’s selloff when it resumed trading once the institutional component of its $1 billion capital raising at $3.05 a share was completed.
Spark New Zealand extended its decline, falling 2% to $2.225 in the biggest drop on the benchmark index. The telecommunications company has fallen out of favour after marking its fourth earnings downgrade last week.
Stocks across Asia were mixed, with the S&P/ASX 200 index down 0.4% in late trading, while Japan’s Nikkei fell 1.1% and Hong Kong’s Hang Seng advanced 2.5%.
Craigs’ McIntyre said some risk had been taken off the table globally as investors grow nervous about the US tariff regime.
The kiwi dollar traded at 57.12 US cents at 5pm in Auckland from 57.16 cents at 7am and 57.33 cents yesterday.
Reporting by Paul McBeth. Image from Garreth Flynn on Unsplash.
