Market close: NZ stocks bounce back

The S&P/NZX 50 Index was up 80.25 points or 0.72 per cent.

The New Zealand sharemarket bounced back more than half a per cent, with Napier Port producing a pleasing full-year financial result.

The S&P/NZX 50 Index picked up momentum at midday and closed at 11,173.28, up 80.25 points or 0.72 per cent after reaching a morning low of 11,067.42.

There were 85 gainers and 43 decliners on the main board, with 21.37 million shares worth $77.41 million changing hands.

Paul Robertshawe, chief investment officer with Octagon Asset Management, said the market had a strong bounce (after two days of falls).

“Interest rates may have peaked and some asset allocation may be occurring in New Zealand. A lot of our defensive stocks will benefit from a fall in rates,” he said.

Napier Port gained 7c or 2.97 per cent to $2.43 – a rise of more than 9 per cent in two trading days – after reporting a 3.4 per cent increase in revenue to $118.38m for the 12 months ending September. Net profit was down 18.8 per cent to $16.58m and the port company is paying a final dividend of 3.55c a share on December 14.

Container volumes were down 12.7 per cent to 222,000 TEUs (20-foot equivalent units) and bulk cargo declined 12.8 per cent to 3.2m tonnes, with log exports falling 11.3 per cent to 2.5m tonnes. But the return of cruise ships provided a $5.3m injection.

Robertshawe said Napier Port had a solid result given the issues created by Cyclone Gabrielle.

Market leaders Fisher & Paykel Healthcare was up 32c to $21.87; Ebos Group increased $1.11 or 3.04 per cent to $37.65; Mainfreight gained 71c to $63.01; and Auckland International Airport added 9c to $7.87.

Energy stocks Meridian was up 4c to $5.02; Mercury gained 6c to $5.97; while Contact was down 11c to $7.62.

Meridian told the market that national electricity demand was 1.9 per cent lower in October and retail sales declined 1.7 per cent compared with the same month last year, but large business sales were up 27.7 per cent and corporate 2.4 per cent.

Among the retirement village stocks, Oceania Healthcare increased 3c or 4.41 per cent to 71c and Arvida Group also added 3c or 2.83 per cent to $1.09.

Freightways was up 22c or 2.91 per cent to $7.77; Scales Corp increased 7c or 2.33 per cent to $3.08; Stride Property gained 4c or 3.13 per cent to $1.32; and Restaurant Brands rebounded 23c or 6.93 per cent to $3.55.

Sanford, unchanged at $3.91, reported a 4 per cent increase in revenue to $553.39m for the 12 months ending September – its highest in five years. Net profit fell 82 per cent to $10.01m and Sanford is paying a final dividend of 6c a share on December 6.

The seafood company said the profitability of the salmon business was ahead of schedule and the mussel division was slower to recover post-Covid because of labour shortages. The revenue increase reflected strong pricing and customer demand despite a drop in volumes.

The Warehouse was down 2c to $1.80 after reporting a 6.7 per cent decline in group sales to $713.3m for the first quarter compared with the previous corresponding period. Gross profit was 1.6 per cent lower at $243.4m.

Fellow retailers Briscoe Group was down 6c to $4.47; KMD Brands declined 2c or 2.35 per cent to 83c; and Michael Hill also decreased 2c or 2.27 per cent to 86c.

Scott Technology fell 17c or 4.64 per cent to $3.49; SkyCity shed 3c to $1.82; and Blackpearl Group was down 4c or 6.67 per cent to 56c. Black Pearl raised $3.8m from a placement and share purchase plan, and said annual recurring revenue went above $5m for the first time in October.

Tower, down 1c to 62, told the market that remediation costs for 65,000 customers not receiving correct discounts on their insurance policies will reach $11.2m, with $6.2m already paid out. Tower’s full-year net profit guidance of $7m-$10m is unchanged.