Market close: NZ stocks bounce back while Gentrack surges after profit turnaround

A stronger energy sector helped push the NZ sharemarket higher. Mercury was up 13c or 2.14 per cent to $6.21.

The New Zealand sharemarket bounced more than half a per cent, led by a stronger energy sector, and Gentrack surged on a solid annual result and earnings upgrade.

After a dull morning, the S&P/NZX 50 Index climbed steadily in the afternoon and closed at 11,237.38, up 81.59 points or 0.73 per cent. The index reached an intraday low of 11,140.17 points.

There were 66 gainers and 57 decliners over the whole market on increased volumes of 40.85 million share transactions worth $148.19 million.

Matt Goodson, managing director of Salt Funds Management, said the Australian market was up nearly half a per cent. There was a 10 basis point fall (overnight) in US bond yields and this spilled over to help support the Australian and New Zealand markets.

The S&P/ASX 200 Index had risen 0.41 per cent to 7016.5 points at 6pm NZ time.

At home, Meridian Energy, the biggest local stock on market capitalisation, increased 8c to $5.29; Mercury was up 13c or 2.14 per cent to $6.21; Contact gained 9c to $7.79; Manawa added 11c or 2.46 per cent to $4.58; and Vector was up 6c to $3.71.

Other market heavyweights Fisher and Paykel Healthcare gained 44c or 2 per cent to $22.49; Ebos Group increased 64c or 1.83 per cent to $35.63; and Fletcher Building was up 8c to $4.58. But Mainfreight was down 65c to $66.35.

Gentrack surged 49c or 9.5 per cent to $5.65 – it has risen 186.5 per cent over the past 12 months – after reporting a 34.5 per cent increase in revenue to $169.88m for the year ending September. Operating earnings (ebitda) were $23.2m, up $15.1m, and net profit was $10.46m, a turnaround from a loss of $3.3m in the previous year.

The utilities software provider revised its guidance for the present financial year to at least $170m in revenue, up from $157m-$160m, and ebitda of $20.25m-$25.5m, from $19m-$27m.

Transport technology firm Eroad increased 5c or 6.76 per cent to 79c after telling the market it is developing new products using Microsoft’s artificial intelligence. Some of the new features will be interactive dashboards, voice assistants and image recognition in vehicles.

Restaurant Brands rebounded 22c or 6.21 per cent to $3.76 on the back of a strong half-year result from Australian counterpart Collins Foods which rose 9.2 per cent to A$11.03 (NZ$12).

Other gainers were Sky TV increasing 9c or 3.24 per cent to $2.87; SkyCity up 5c or 2.82 per cent to $1.82; Napier Port collecting 6c or 2.51 per cent to $2.45; Seeka adding 7c or 2.56 per cent to $2.80; and Steel & Tube improving 6c or 5.66 per cent to $1.12.

Arvida Group, unchanged at $1.06, reported a 12 per cent increase in revenue to $122.11m and steady operating profit of $90m for the six months ending September. Arvida is paying an interim dividend of 1.2c a share on December 21.

The retirement village operator had 285 sales (102 new and 183 resale) and the gross value was up 2 per cent to $171.4m compared with the previous corresponding period. Total assets increase 10 per cent to $4b and the gearing ratio is 33.6 per cent.

Goodson said Arvida was continuing the theme for retirement village companies that while valuations increase after they develop, the balance sheet is starting to get stretched. “Arvida has halved its dividend and built-up unsold inventory.”

In other retirement stocks, Ryman Healthcare was down 8c to $5.30 and Oceania Healthcare improved 3c or 4.35 per cent to 72c.

Stride Property, down 3c or 2.26 per cent to $1.30, reported expected half-year revenue of $47.49m, up 2.89 per cent and a net loss of $50.52m, mainly because of a $55.3m reduction in the value of its portfolio. Total assets under management are worth $3.2b and Stride maintained guidance of 8c a share for the 2024 financial year.

Other property stocks Argosy was up 3c or 2.68 per cent to $1.15, and Vital Healthcare Trust was down 6c or 2.84 per cent to $2.05.