NZ stocks finish higher after late spurt - Market close

Fisher & Paykel Healthcare was up 25c to $24.10.

The New Zealand sharemarket had a late spurt of nearly half a per cent, and investors are holding their breath over whether the index will hold on to its hard-earned gain for the year.

The S&P/NZX 50 Index had a solid afternoon after an early-morning fall and closed at 11,617.37, up 52.39 points or 0.45 per cent. The index reached an intraday low of 11,492.62 points and has gained nearly 1.3 per cent for the year with a week of trading remaining.

There were 70 gainers and 59 decliners over the whole market on volumes of 34.49 million share transactions worth $101.27 million.

Mark Lister, investment director with Craigs Investment Partners, said “the market is ending in good spirits and holding on to its marginal positive gains, but all it will take is one or two down days to fall back into the red”.

The big test will come in the Treasury’s half-year economic and fiscal update. Lister said it’s the first chance for the Treasury to incorporate the new Government’s policies into its latest forecasts.

“That will be interesting and you could see more of a reaction from the interest rate market and NZ dollar than the sharemarket,” Lister said.

The December ANZ Business Outlook survey showed business confidence rose 2 points to plus 33 and expected own activity increased 3 points to plus 29.

ANZ said the vast majority of indicators lifted. Inflation expectations took a decent step lower, but the proportion of firms expecting higher costs or intending to raise their prices both rose.

Lister said inflation is remaining stubborn and that’s not what the Reserve Bank wants to see. The business survey was a mixed bag.

In the United States, the S&P 500 neared its all-time high after increasing 0.45 per cent to 4740.56, just shy of the record 4793.06 achieved on December 29, 2021.

At home, Fisher & Paykel Healthcare was up 25c to $24.10; Spark gained 6c to $5.13; a2 Milk increased 7c to $4.45; Auckland International Airport added 15c to $8.60; Gentrack rose 17c or 2.56 per cent to $6.81; and Ryman Healthcare improved 15c or 2.8 per cent to $5.51.

Other gainers were NZME rising 5c or 5.75 per cent to 92c; Winton Land increasing 7c or 2.82 per cent to $2.55; AFT Pharmaceuticals up 7c or 2.12 per cent to $3.37; Scott Technology collecting 9c or 2.97 per cent to $3.12; Booster Innovation improving 4c or 2.48 per cent to $1.65; and Smartpay up 5c or 3.4 per cent to $1.52.

Ebos Group, up 1c to $36.10, told the market it has taken its shareholding in Southeast Asian medical devices distributor Transmedic to 90 per cent. Ebos finished up with 51 per cent of Transmedic when it bought LifeHealthcare in May last year, and Ebos paid NZ$143m for the additional 39 per cent shareholding.

Takeover target Rakon increased 8c or 7.14 per cent to $1.20. Rakon, which makes frequency control products, has told the market that the takeover offer, at $1.70 a share, comes from a party that is in the same industry as Rakon but is not a competitor to the business.

Rakon has formed an independent committee to consider the offer and the process has the backing of some major shareholders.

Among the decliners, Air New Zealand was down 1.5c or 2.38 per cent to 61.5c; Sky TV decreased 6c or 2.15 per cent to $2.73; SkyCity shed 4c or 2.16 per cent to $1.81; and Eroad fell 6c or 5.61 per cent to $1.01.

In the retail sector; KMD Brands was down 4c or 4.94 per cent to 77c; The Warehouse shed 4c or 2.34 per cent to $1.67, and Michael Hill declined 3c or 3.23 per cent to 90c.

In the retirement sector, Summerset Group was down 27c or 2.67 per cent to $9.85, and Oceania Healthcare declined 3c or 4.05 per cent to 71c.

Restaurant Brands, down 3c to $3.45, said its Australian subsidiary QSR Pty is likely to be joined in a class action filed in the Federal Court by Shine Lawyers on behalf of some KFC employees who worked between December 4, 2017 to 2023.

KFC operator Collins Foods is also named in the legal action that claims the employees were not provided with paid 10-minute rest breaks.