NZ sharemarket falls despite positive Fonterra result – Market close

Fonterra's total revenue jumped by 15%, but its net profit fell by 4.3%. Photo / 123RF

The New Zealand sharemarket was down today, driven largely by Fisher & Paykel Healthcare and a2 Milk, but the full-year result released by Fonterra was also a focus for investors.

The S&P/NZX 50 Index closed down 0.21% or 27.51 points, falling to 13,153.79 after 33.18 million shares worth $142.3 million traded.

The S&P/NZX 20 index closed at 7579.04 points, down 0.09%, while the S&P/NZX 10 index ended the day at 12,640.38, falling 0.52%.

There were 75 gainers on the main board and 56 decliners.

Hamilton Hindin Greene investment adviser Jeremy Sullivan said Fonterra was the story of the day, noting its annual result was stronger than the headline profit suggested.

Fonterra reported a net profit of $1.079 billion for the July 2025 year, down 4.3%, while maintaining its milk price forecasts.

“Operating profit rose, cash returns stepped up, and milk payments to farmers reached $15.3b. The net profit decline reflects a change in tax treatment rather than a fall in demand or execution,” Sullivan said.

“Guidance for FY26 at 45–65c is softer as earnings normalise and the portfolio is prepared for the planned Consumer divestment."

Sullivan said FY26 looks like a transition year for the business while the portfolio is simplified and new capacity is built.

“If product mix upgrades and capacity projects land on time, earnings can rebuild toward FY25 levels in about three years.”

The Fonterra Shareholders’ Fund’s unit price fell 1.14% or 9c to $7.81 after 135,302 units were traded on turnover worth $1m.

Sullivan said the wider NZX was dragged down by the top stock Fisher & Paykel Healthcare, giving back gains it made on Wednesday.

Its share price fell 4.02% or $1.52 to $36.28 on turnover worth $35m.

A2 Milk’s share price also declined, falling 10c or 1.03% to $9.65.

Elsewhere, Infratil continued to rise after its announcement late on Wednesday that CDC Data Centres had secured about 100MW of new contracted capacity.

Infratil’s share price increased 2.10% or 26c to $12.65 on turnover worth $16.3m.

Wall Street stocks fell for the second straight session on Wednesday as analysts pointed to worries about elevated equity valuations and awaited key economic data later in the week.

“We’ve given up some ground today,” said FHN Financial’s Chris Low. “It really does look mostly like people are just taking some cash off the table or repositioning.”

The Dow Jones Industrial Average finished down 0.4% at 46,121.28.

The broad-based S&P 500 fell 0.3% to 6637.97, while the tech-rich Nasdaq Composite Index shed 0.3% to 22,497.86.

While all three indices finished at fresh records on Monday, market watchers have said equities could be poised to retreat after a heady run, especially since late September is traditionally a weak patch for the market.

Low also pointed to worries that policymakers at the United States Federal Reserve may back away from additional interest rate cuts. Key data points in the coming days include Thursday’s jobless claims data and Friday’s personal consumption price data, a closely watched inflation metric.

– Additional reporting AFP

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.