Market close: Mainfreight's surge helps keep NZ sharemarket's momentum alive

Photo / NZME

Global transport and logistics operator Mainfreight continued to surge and kept the New Zealand sharemarket momentum alive following weakness on Wall Street.

The S&P/NZX 50 Index had a choppy session looking for some direction and then had a late rise to close at 11,100.52, up 54.02 points or 0.49 per cent after hitting an intraday low of 11,042.95.

There were 73 gainers and 58 decliners over the whole market with 26.86 million shares worth $87.17 million changing hands.

Doubts about the strength of the United States markets rally crept in after the big tech stocks missed earnings estimates.

Jeremy Sullivan, investment adviser with Hamilton Hindin Greene, said the markets are reacting to any bit of news, whether positive or negative and the US reporting season is being very closely watched.

"Our bank swap rates have fallen and this would have helped our market which has held up well," he said.

The two-year rate has fallen nearly 25 basis points to 5.07 per cent, from 5.31 per cent.

On Wall Street, the Dow Jones Industrial Average was flat, while S&P500 was down 0.74 per cent to 3830.6 points and the technology-laden Nasdaq Composite fell 2.04 per cent to 10,970.99.

Alphabet (Google) declined 9.14 per cent - its worst day since 2020 - Microsoft decreased 7.72 per cent and Meta (Facebook) was down 5.59 per cent on disappointing quarterly earnings. But Harley-Davidson was up 12.6 per cent after beating market expectations.

At home, a report from BWA Insolvency revealed liquidations increased 43 per cent to 384 and receiverships were up 243 per cent for three months ending September. There was also a 48 per cent increase in formal insolvency proceedings.

The report said Government handouts kept some companies trading that probably would have failed without the help. Now, they are on their own, and with Inland Revenue showing far less leniency, many businesses are fighting against some major commercial headwinds.

Sullivan said if insolvencies continue to speed up then "we are looking at slightly higher unemployment and this is needed to get inflation under control. With unemployment under 4 per cent the economy is running too hot."

Mainfreight is sailing along. The stock gained a further $1.85 or 2.49 per cent to $76 and has now risen more than 14.5 per cent in four trading days after reporting strong growth. Mainfreight's share price was sitting at $65 a week ago.

Another trusty performer Ebos Group increased 90c or 2.49 per cent to $37.05 after telling shareholders at the annual meeting about the double-digit growth for the three months ending September compared with the same period last year. Revenue for the expanded group was near to $3 billion and operating earnings (eitda) $142m. This year Ebos has made five purchases, including the $1.2b acquisition of LifeHealthcare, a leading distributor of medical devices.

The energy sector was stronger. Contact was up 8c to $7.25; Manawa rose 22c or 4.37 per cent to $5.26; Meridian gained 5c to $4.69; and Mercury increased 13c or 2.41 per cent to $5.53.

Following a 6 per cent rise the day before, Freightways was up a further 17c to $10.15 after reporting that first-quarter revenue increased 17 per cent and operating earnings (ebitda) were up 9 per cent compared with the same period last year, mainly due to market share growth and increased prices.

Fisher and Paykel Healthcare gained 14c to $19.39; Michael Hill increased 4c or 3.17 per cent, Kiwi Property added 2c or 2.3 per cent to 89c; Accordant Group recovered 11c or 6.71 per cent to $1.75; and Tower was up 2.5c or 3.97 per cent to 65.5c

Marsden Maritime was up 9c to $6.16; NZ Oil & Gas gained 1.5c or 3.41 per cent to 45.5c; Ventia Services increased 8c or 2.76 per cent to $2.98; Vulcan Steel collected 20c or 2.52 per cent to $8.13; and Cooks Coffee was up 1.5c or 3.75 per cent to 41.5c.

SkyCity Entertainment, down 1c to $2.70, is taking back the operation of its car parks by early next year and is expected to deliver operating earnings (ebitda) of $15m-$20m a year.

MPF Parking NZ terminated its long-term concession after SkyCity was unable to hand over all the car parks on the NZ International Convention Centre site due to the damage caused by the first on October 22, 2019. A yet-to-be-determined payment will be made to MPF.

ANZ Banking Group fell $1.14 or 3.95 per cent to $27.70 after announcing a restructure that will separate the banking and non-banking businesses. Shareholders will vote on the scheme on December 15 and ANZ Group Holdings will be the new listed parent company.

Restaurant Brands decreased 25c or 3.38 per cent to $7.15; Serko shed 12c or 3.93 per cent to $2.93; Vista Group was down 5c or 3.18 per cent to $1.52; NZME declined 3c or 2.59 per cent to $1.13; and Gentrack fell 7c or 4.29 per cent to $1.56.

Medicinal cannabis companies Rua Bioscience was down 2c or 8 per cent to 23c, and Cannasouth declined 1.5c or 4.76 per cent to 30c.