Market close: Pacific Edge rallies for second day on southern district health region deal

Pacific Edge gained another 4 per cent to 79 cents, bringing its total gain this week to almost 13 per cent. Photo / Supplied

Pacific Edge led the New Zealand sharemarket higher for a second day on news the southern district health region would adopt its cancer test.

The S&P/NZX 50 Index rose 70 points, or 0.6 per cent, to 11,269.75. Turnover was just $62 million.

Cancer diagnostics company Pacific Edge gained another 4 per cent today at 79 cents, bringing its total gain this week to almost 13 per cent. The stock rallied yesterday on increased test volumes being processed through its lab and today on news the health authority for Otago and Southland would begin using Cxbladder.

Pacific Edge said it had substantially completed a commercial agreement with the district, which provides healthcare for 326,000 people. The agreement will mean that 15 of NZ's 20 health regions – more than 75 per cent of the population – will have access to the test via public healthcare, it said.

Jarden analysts said the test volume trading update yesterday was "broadly in line" with expectations and maintained their 90-cent target price.

Shares in Heartland Group Holdings climbed 2.9 per cent to $2.14 and Fisher & Paykel Healthcare was up 2.6 per cent at $21.55, continuing a recent rally of more than 6 per cent this week.

Eroad once again posted the biggest fall, dropping 5.3 per cent to $1.98, followed by Tourism Holdings which declined 2.4 per cent to $2.43. Mercury NZ was up 2.2 per cent at $5.98 after announcing it would hold its annual general meeting on September 22. Meridian Energy was also up 1.1 per cent at $4.875.

IkeGPS gave a trading update which showed first-quarter revenue was up 162 per cent on the same quarter last year, at roughly $6.8m. Chief executive Glenn Milnes said the quarter had an "outstanding period of growth" with expanding contracts with existing customers and winning new ones.

"Including one the five largest engineering companies serving the electric utility market across the US," he said. "The outlook remains robust. Following 71 per cent revenue growth in FY22, we expect FY23 to be another significant period of growth."

Milnes said there was an estimated $13m to $15m of revenue backlog from signed contracts that haven't been delivered yet, meaning 2023 was likely to be a strong year.

Shares in ANZ Bank were up 0.4 per cent at $24.05 after it raised approximately $1.7 billion from institutional investors at $21.65 – $2.75 above the $18.90 offer price. Competitor Westpac Banking Group also gained half a per cent at $22.97.

The NZ dollar was trading at 62.22 US cents at 3pm in Wellington, down marginally from 62.39 cents yesterday. The trade-weighted index was at 71.04, from 71.10.

BNZ strategist Nick Smyth said the kiwi was being supported by some recovery in the European currency. "The NZ dollar has appreciated strongly in sympathy with the Euro, to which it has been highly correlated in recent times," he said.

- BusinessDesk