Market close: Positive updates from leading stocks pushes NZX to another gain

Restaurant Brands - which operates KFC in New Zealand - gained 15c or 2.07 per cent to $7.40. Photo / Dave Murdoch

A succession of positive updates from leading stocks pushed the New Zealand sharemarket to another healthy gain – up almost 2.5 per cent so far this week.

Following another big day on Wall Street, the S&P/NZX 50 Index pushed through the 11,000 points mark for the first time in nearly four months, rising 144.18 points or 1.32 per cent to 11,046.5.

There were 101 gainers and 35 decliners on the main board but volume was light with 25.81 million share transactions worth $87.3 million.

Mark Lister, head of private wealth research at Craigs Investment Partners, said the updates on the corporate front were comforting and the market is in pretty good heart.

But Lister warned that the United States markets – the source of a global rebound in stock prices – may be weaker overnight with tech giants Alphabet (Google) and Microsoft reporting softer third quarter financial results after trading closed. The worry was a reduction in ad revenue.

The major indices rose strongly for the third consecutive day. Dow Jones Industrial Average was up 1.07 per cent to 31,836.74 points; S&P 500 increased 1.63 per cent to 3859.11; and Nasdaq Composite gained 2.25 per cent to 11,199.12.

At home, the latest ANZ survey showed business confidence fell six points in October to minus 43 and expected activity dipped one point to minus three following the stronger-than-expected consumer price index data – with New Zealand inflation running at 7.2 per cent.

But this hasn't worried some of the listed stocks.

Skellerup Holdings rebounded 19c or 3.72 per cent to $5.30 after telling shareholders at its annual that demand remained solid and first quarter performance was in line with the previous corresponding period. Skellerup is expecting full-year net profit of $48m-$52m, ahead of the record 2022 profit of $47.8m.

Fletcher Building, up 15c or 3.06 per cent to $5.05, told shareholders at its annual meeting that trading in the products and distribution divisions across New Zealand and Australia remained in line with expectations, and volumes would likely stay the same for the remainder of the 2023 financial year. Fletcher confirmed its full-year operating earnings (ebit) guidance of $855m or better.

Restaurant Brands gained 15c or 2.07 per cent to $7.40 after reporting that total sales increased 32.3 per cent to $322.2m for the third quarter ending September compared with the same period last year. Third quarter sales for New Zealand were up 43.9 per cent to $137.6 million, and total group sales for the year to date reached $907.1m, helped by the contribution of 20 new stores.

Tourism Holdings rose 20c or 6.15 per cent to $3.45 after the Queensland Supreme Court approved the new arrangement for its merger with Apollo Tourism & Leisure. Tourism Holdings said the merger is expected to deliver an operating earnings (ebit) uplift of $23m-$24m on an annual recurring basis – an increase on the previous estimate of $17m-$19m.

Mainfreight continued to move strongly following its upbeat market upgrade last Friday, rising a further $2.35 or 3.27 per cent to $74.15.

Freightways chimed in with a 58c or 6.17 per cent increase to $9.98; Port of Tauranga was up 19c or 3.1 per cent to $6.32; and Infratil collected 12c to $8.28.

The energy sector had a strong day. Meridian gained 8c to $4.64; Contact increased 8c to $7.17; Mercury gained 7c to $5.40; and Genesis added 6c or 2.16 per cent to $2.84.

The retirement village operators rallied, with Summerset Group up 35c or 3.72 per cent to $9.75, and Ryman Healthcare gaining 19c or 2.31 per cent to $8.42.

Property companies followed suit. Argosy rose 6c or 5.29 per cent to $1.195, Investore gained 4c or 2.76 per cent to $1.49; Property for Industry increased 7c or 3.02 per cent to $2.39; Stride was up 6c or 3.95 per cent to $1.58; and Vital Healthcare Trust added 7c or 3.07 per cent to $2.35.

Other gainers were Comvita, up 11c or 3.5 per cent to $3.25; Rakon increasing 5c or 4.63 per cent to $1.13; Seeka adding 8c or 2.11 per cent to $3.88; and Foley Wines collecting 4c or 2.99 per cent to $1.38.

Briscoe Group increased 15c or 3.03 per cent to $5.10; Ventia Services was up 8c or 2.84 per cent to $2.90; Scales Corp gained 9c or 1.94 per cent to $4.74; and Pushpay improved 3c or 2.59 per cent to $1.19

The Warehouse Group, down 2c to $3.05, has arranged a four-year retention incentive for its chief executive Nick Grayston who will receive 1.6 million share rights. They can be converted to ordinary shares on October 1, 2026, plus dividends as long as Grayston is still employed by the group.

Cinema software management firm Vista Group, declining 2c to $1.57, held its Investor Day and is targeting long-term annual recurring revenue of at least $300m, and expects to deliver free cash flow by the end of 2025 when revenue will reach $175m-$205m and clients will total 1600-2400 on its new platform.

Recruitment company Accordant Group fell 16c or 8.89 per cent to $1.64 after reporting a 37 per cent increase in net profit to $2.1m for the six months ending September. Accordant is paying an interim dividend of 6.5c a share on December 1.