Market close: NZX gains, Pushpay tumbles

Pushpay Holdings fell 80c or 8.7 per cent to $8.40. Photo / File

The New Zealand sharemarket moved ahead half a per cent in a late surge of trading – but investors were anxious as they awaited the outcome of the United States election.

The S&P/NZX 50 Index finished an intriguing day 69.62 points or 0.57 per cent ahead at 12,199.93. There were 87 gainers and 49 decliners over the whole market and share transactions totalled 62.2 million worth $163.90 million.

Overnight, Wall Street closed on a high, buoyed by investor hopes that a clear winner would be declared in the presidential election and that a financial stimulus package would be quickly passed. But at the time of writing, this didn't seem to be the case.

The Dow Jones Industrial Average zoomed ahead, rising nearly 555 points or 2.06 per cent to 27,480.03; the S&P 500 Index was up 1.78 per cent to 3369.16; and the technology-driven Nasdaq Composite increased 1.85 per cent to 11,160.57. The markets, which dislike uncertainty, could quickly turn if the election result is delayed.

Jeremy Sullivan, investment adviser with Hamilton Hindin Greene, said "we are watching with great interest the outcome of the election".

"It is close and the mail-in ballots will favour Joe Biden – two-thirds of Democrats to one-third Republicans voted this way. The mail-in ballots could have a major effect and Trump will challenge them in the key states.

"We have not seen large movements in our stocks and the New Zealand market is more resilient to whoever gets in. Whether it's Biden or Trump, you'll still see an economic stimulus," Sullivan said.

Pushpay Holdings, whose digital donor management business is mainly engaged with United States churches, took a tumble, falling 80c or 8.7 per cent to $8.40 after a solid half-year result.

For the six months ending September, Pushpay's revenue grew 51 per cent to US$86.55m ($129.44) from US$57.4m in the same period last year. Its net profit soared 107 per cent to US$13.4m from US$6.5m and it is not paying an interim dividend.

Sullivan said Pushpay had not added any customers since March – "its share price has increased 180 per cent over the past year and you have to have lofty announcements to maintain that pace".

Pushpay, which has announced a one-for-four share split, said the lack of growth in customers was curious and below its expectation.

Fisher and Paykel Healthcare rose 47c to $36; Contact Energy gained 7c to $7.60; Infratil increased 15c or 2.86 per cent to $5.40; and Ryman Healthcare climbed 25c to $14.25.

Ebos Group fell 10c to $25.65; a2 Milk was down 11c to $14.20; Skellerup Holdings declined 7c or 2.31 per cent to $2.96; and manuka honey producer Comvita decreased 7c or 2.15 per cent to $3.18.

Service station operator Z Energy reported a 39 per cent drop in revenue to $1.49 billion and a net loss of $58m, from a profit of $28m, for the half year ending September. The company was affected by the Covid lockdowns and weak refining margins.

But Z Energy showed it was on the path to recovery by forecasting operating earnings (ebitdaf) of $235-$265m for the 2021 financial year, as well as reducing costs by $48m. Its share price rose 5c or 1.72 per cent to $2.95.

Cavalier Corporation is going back to its roots and rebranding to its original name Bremworth as it transitions to woollen carpet making. Its share price rose 3.5c or 11.86 per cent to 33c. Cavalier said sales revenue was up 3 per cent for the first quarter of the 2021 financial year compared with the previous corresponding period.

Retirement village operator Metlifecare has now delisted from the NZX and Australian ASX exchanges after the $1.27b takeover by Asia Pacific Village Group, backed by Swedish equity firm EQT.