Hallenstein Glasson CEO Chris Kinraid has resigned.
The New Zealand sharemarket continued its strong momentum, while the sudden resignation of Hallenstein Glasson’s well-performing chief executive added some intrigue.
The S&P/NZX 50 Index traded solidly all day and closed at 13,133.16, up 62.71 points or 0.48%.
There were 80 gainers and 58 decliners on the main board with 38.2 million shares worth $115.9 million changing hands.
The index has recorded four successive months of gains since May – the longest monthly winning streak for four years when the market began recovering from the Covid-19 pandemic in 2021.
Mark Lister, investment director with Craigs Investment Partners, said: “We’ve just been through a solid reporting season and corporate New Zealand is in good shape. Let’s hope it’s the start of a more sustained economic recovery.
“This year, we have lagged the larger global markets – world shares have risen 13% and ours are flat – because the economy has been stuck in a recession for an extended period,” Lister said.
“It does feel we have reached a turning point, with no real disasters in the reporting season and the Reserve Bank signalling more Official Cash Rate cuts.
“This will provide additional confidence, and with a little bit of luck, the gap in [sharemarket] performance between us and the rest of the world will close.”
Retailer Hallenstein Glasson was up 4c to $8.75 after announcing the resignation of group CEO Chris Kinraid, who leaves on Friday.
Hallenstein said Kinraid was instrumental in delivering strong revenue growth and earnings during a challenging economic environment. As a result, he is leaving the group in a very strong position. Hallenstein’s share price is at an all-time high.
Lister said Hallenstein Glasson has been a strong performer and is back in the NZX 50.
“Kinraid is a well-respected, competent chief executive. No doubt he has a strong team around him, and they will have no trouble in recruiting a replacement.”
With the United States markets closed overnight for Labour Day and Australia down again slightly, the local market was led by heavy hitters Infratil, increasing 40c or 3.48% to $11.89, and Mainfreight, up $1.40 or 2.26% to $63.25. Mercury Energy gained 9c to $6.72.
Mainfreight has won a freight contract with Ikea when the retail store opens in Auckland by the end of the year.
Port of Tauranga gained another 17c or 2.35% to $7.40 on the back of a pledge that the Government will be sorting out an issue that caused its fast-tracked wharf expansion plan to be halted by a judicial review.
Vista Group, which made a presentation to Craigs Investment Partners, increased 10c or 3.33% to $3.10. Fellow technology stock Serko was up 9c or 3.59% to $2.60.
NZME gained 2c or 1.79% to $1.14 after a disclosure that directors Steven Joyce and Jim Grenon had bought additional shares in the publisher and broadcaster.
The property sector is showing signs of revival, with Goodman Trust increasing 5.5c or 2.69% to $2.10; Precinct Properties up 2.5c or 1.96% to $1.30; and Vital Healthcare Trust gaining 3.3c to $2.07. Property developer Winton Land was up 9c or 4.27% to $2.20.
Fletcher Building gained 8c or 2.52% to $3.26; Oceania Healthcare increased 3c or 4.76% to 66c; and Delegat Group continued to rebound, up 8c or 1.89% to $4.31.
Amongst the decliners, Ebos Group was down 28c to $33; a2 Milk shed 20c or 1.87% to $10.48; Freightways decreased 25c or 2.;02% to $12.12; and Chorus eased 12c to $9.65.
Santana Minerals, up 1.5c or 2.07% to 74c, said an updated economic impact statement confirmed the Bendigo-Ophir Gold Project would deliver $5.8 billion in Gross Domestic Product (GDP) to the Central Otago region ($360m a year using a gold price of $5410 an ounce).
The project would also create 854 jobs directly and indirectly, including 357 fulltime-equivalent positions, and contribute nearly $2b in government revenue (royalties, tax and ACC) over the projected mine’s life.
Third Age Health Services, unchanged at $4.40, told the market that current board chair John Fernandes will become the executive chairman, following the departure of CEO Tony Wai in October.
Being AI was also unchanged at 5c after acknowledging the New Zealand Markets Disciplinary Tribunal determination of a public censure and $50,000 fine for breaching five NZX listing rules. Being AI failed to operate with the required minimum number of directors for a period early this year.