NZ sharemarket up as Sanford produces bumper result – Market close

Shares in Sanford rose 3.43% to $5.12, up 17c, after a strong half-year result.

The New Zealand sharemarket was up today after shares in major companies including Fonterra, Sanford and Auckland Airport performed strongly.

The S&P/NZX 50 Index closed up 0.79% or 101.56 points, rising to 12,880.82, with 31,094,580 shares changing hands to the value of $108.9 million.

The S&P/NZX 20 index closed at 7,627.15, up 0.76%, while the S&P/NZX 10 index closed at 1,958.54, up 1.14%.

There were 80 gainers on the main board and 49 decliners.

Sanford saw its share price rise today after the news it more than doubled its half-year profit on the back of good returns for its salmon farming operation.

Sanford’s result was its best in a decade, with revenue rising modestly, margins improving and a strong increase in cashflow.

Shares in Sanford rose 3.43% to $5.12, up 17c, with 153,898 shares trading hands to the value of $792,729.57.

Devon Funds head of retail Greg Smith said that while it watered down its outlook, Sanford was doing well.

“They said they don’t appreciate the same level of profitability in the second half due to market price pressure and seasonal volumes.

“But the volume story in this half was quite good,” Smith said.

“Its balance sheet continues to improve, so more is being paid down. All in all, a pretty good story there and yet another agribusiness that’s doing quite well.”

Fonterra also reported a strong day with the Fonterra Shareholders’ Fund unit price rising 1.28% to $6.35, up 8c with 171,079 shares trading hands to the value of $1,092,246.56.

It coincided with new data from Stats NZ that revealed the average price for 500g of butter was $7.42 in April this year, nearly $3 more expensive than this time last year.

“Dairy’s been a bright spot for the economy, but I suppose it is also coming at a bit of a cost to to Kiwi shoppers.

“It just highlights the cost pressures facing consumers are still there, and because wages aren’t growing as fast as grocery prices.”

Shares in Auckland Airport also rose after domestic and international passenger movements increased in April.

Its share price rose 1.32% to $8.06, up 10.5c with 2,071,693 shares trading hands to the value of $16,662,426.33.

“I think obviously there’s been a little bit of a moderation of capacity due to what’s going on with Air New Zealand.

“That probably also goes to the state of the economy as well, people are cutting back and planes maybe domestically aren’t as full as they were. I think that’s just symptomatic of the weakness in the economy.”

Meanwhile, Ryman Healthcare’s share price fell 3.64% to $2.38, down 9c, with 1,003,059 shares trading hands to the value of $2,415,301.49.

Wall Street stocks finished mostly higher on Wednesday (local time) after a choppy session as markets look ahead to key US retail sales and inflation data.

Analysts described the indecisive session as reflective of a quiet day for macroeconomic news after markets soared on Monday on a favourable US-China trade announcement, before mostly extending those gains on Tuesday.

“Investors are just taking a little bit of a pause after yesterday’s strong gains and we’re waiting for tomorrow’s macro news,” said Peter Cardillo of Spartan Capital Securities.

The Dow Jones Industrial Average finished down 0.2% at 42,051.06.

The broad-based S&P 500 edged up 0.1% to 5892.58, while the tech-rich Nasdaq Composite Index gained 0.7% to 19,146.81.

After stocks tumbled in early April following sweeping tariff actions announced by US President Donald Trump, the market has rebounded as Trump has retreated from many of the actions.

– Additional reporting AFP

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