Shares in Hallenstein Glasson rallied sharply after an earnings update. Photo / NZME
The New Zealand sharemarket ended firmly, driven mostly by a2 Milk and significant improvements in selected second-line stocks.
The S&P/NZX 50 Index ended up 41.24 points, or 0.32%, at 12,903.08, with 40 million shares worth $169.6m trading.
There were 76 rises and 53 falls on the main board.
News that ANZ’s business confidence survey improved by two points in August to a net 50% of respondents expecting better business conditions was taken as a mild positive.
“Things are still challenging, but the fact that business confidence has become more positive, that’s helpful,” Harbour Asset Management portfolio manager Shane Solly said.
ANZ said the survey was consistent with the Reserve Bank’s updated view that the economy needs a little more support to head off downside risks.
“It’s too early to judge the confidence impacts of this month’s shift in stance, but our view is that it will shore up the recovery that is now under way,” it said.
The strongest performer on the day was Hallenstein Glasson, which firmed 45c or 5.6% to $8.52 after announcing an upbeat sales report for the 12 months to August 1.
The company said its net profit is expected to be within the range of $57.5m to $58.5m, up about 11.4% on the prior year’s.
The balance sheet for the group remained strong with record cash reserves and well-maintained stock levels, it said.
“Obviously, Australia has been a very strong avenue for Hallensteins, and that’s something we’re hearing from others as well,” Solly said.
“Australian consumers are bargain hunting, whereas New Zealand people are being a little wary,” he said.
Infant formula marketer a2 Milk, which has been on a roll since announcing its result, gained 36c or 3.5% to $10.66.
Solly said the gain was on the back of Chinese dairy giant Mengniu’s result, which signalled infant formula as being a strong performer.
Mengniu is the ultimate owner of Yashili NZ, which is in the process of selling its factory in Pokeno to a2 Milk.
Air New Zealand dropped 1c to 59.5c after reporting its result – a $126m net profit down from $146m the year before.
The airline said its 2025 financial year results reflected a sluggish domestic market, global engine maintenance challenges and significant cost inflation.
“It was a pretty solid result from Air NZ, given the tough times, and then I guess the outlook statement was pretty wary and cautious,” Solly said.
“There are a lot of things that they’ve got to wait for – aircraft engines in particular,” he said.
“They were very cautious about domestic activity, which remains challenging,” Solly said.
Vulcan Steel gained 7c to $7.30 after successfully completing the first leg of its capital raise to fund its purchase of metal roofing and cladding manufacturer Roofing Industries for $88m.
Retirement village company Summerset gained 12c to $10.65 on big volume after reporting a 26% lift in its net profit to $127.2m for the first half.
Summerset chief executive Scott Scoullar said the company had delivered a credible result underpinned by a sustainable growth strategy.
“The markets in New Zealand and Australia are both showing signs of improvement, but it’s still a challenging economic environment to operate in.
“We are, of course, keeping a wary eye on economic conditions, but we are optimistic we can continue the momentum we’ve seen so far in 2025 with our pipeline of sales moving into the second half of the year well-positioned to deliver,” he said.
Infrastructure company Channel gained 11c or 4.9% to $2.37.
Software firm Gentrack rallied 30c to $10.25 on expectations that it will be included in the Australian FTSE small-cap index.
Tomorrow, results from Port of Tauranga, Delegat Group, Move Solutions and Comvita will cap off what has been a mixed reporting season.
Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.