“Hopefully, that means we’re going to see some solid results at least that will reflect an economy that’s passed the worst and management teams that are a bit more upbeat about the future than we saw back in February.”
Among the stronger performers was Vulcan Steel, which ended 25c (3.55%) higher at $7.29, taking its rise for the week to 9.5% and 16.6% since the end of June.
The Australasian steel distributor reports its annual result on August 26.
Vulcan’s competitor in New Zealand, Steel and Tube, which reports a day before, gained 1c to 71c.
The steel companies’ gains follow data showing New Zealand’s manufacturing sector moved back into expansion during July, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI), which hit 52.8 in the month.
Among the other movers, Infratil gained 17c to $11.94, Turners Automotive dropped 8c to $6.76 and Fletcher Building put on 5c to sit at $3.13.
Cinema software company Vista dropped 6c to $3.14 in the aftermath of Thursday’s interim result, in which its net loss shrank to $1.2m from a $2.7m loss a year earlier.
“Things are a little slower for Vista than they would like, and they face a few headwinds and additional costs,” Lister said.
“I still think there’s an interesting story for Vista looking out a little bit further – one, two or three years – but on a near-term basis, it has a few challenges.
“It’s a stock that is obviously more economically sensitive than some others.”
Looking ahead, a2 Milk (up 11c at $8.72) is due to report its annual result on Monday.
Analysts will be interested to see if the infant formula marketer’s numbers justify the strong performance of its share price so far this year.
Moreover, investors will be keen on any hints as to what a2 plans to do with its cash mountain, estimated to total around $1 billion.
On the same day, Contact Energy (down 7c at $8.93) is due to report.
In terms of where the economy is at, perhaps the most telling result will be from express package delivery firm Freightways (up 6c at $11.56), which also reports on Monday.
The Reserve Bank is due to issue its Monetary Policy Statement on Wednesday.
Market consensus is for a 25-basis-point cut in the Official Cash Rate to 3.00% but where economists differ is how much the bank will cut in the months ahead.
On the trade front, world tensions appear to have eased, Lister said.
“The missing link for the New Zealand market is some good, tangible earnings announcements,“ Lister said.
“And if we can get that next week and the week after, then we can hopefully see our market turn a corner.”
Jamie Gray is an Auckland-based journalist, covering the financial markets, primary sector and energy. He joined the Herald in 2011.
