Best & worst NZ stocks in 2023 so far

One New Zealand Top 50 index stock fell more than 80 per cent in the first half of this year and is unlikely to recover fully, while cyclical stocks linked to housing are proving to be 2023′s winners.

The worst performing stock, Pacific Edge Biotechnology’s (PEB), dropped below 10 cents a share in June, after a decision from a Medicare contractor that would see the United States health insurance scheme stop covering the cost of its bladder cancer diagnostics tests - eroding the majority of PEB’s revenue.

“Clearly it was a big surprise to the company, to us and to the market,” Jarden analyst Christian Bell told Markets with Madison.

An announcement from the company yesterday provided a glimmer of hope to reverse the decision, doubling its share price to 20 cents a share, but Bell said its prospects remained uncertain.

He had an overweight position on PEB stock at the beginning of 2023 and justified his reasoning for it in today’s episode above.

“Things were looking very promising and the balance sheet was strong.

“I guess the Novitas decision really pulled the rug out.”

Other poor performing stocks in the first half, on a total shareholder return basis, included Synlait Milk, a2 Milk, The Warehouse Group, Scales Corporation and Ebos Group.

The best performers included Serko, Ryman Healthcare, Fletcher Building, Infratil and Mercury.

Find out what’s behind the winners and losers in today’s episode of Markets with Madison above.

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Madison Reidy is the host of New Zealand’s only financial markets show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.