Market close: Solid company results balance out economic uncertainties

Spark increased 5.5c to $4.61 after reporting a solid half-year result, driven by a strong performance in mobile services. Photo / Getty Images

The New Zealand sharemarket put in a resilient performance with further solid company results balancing out economic uncertainties around rising interest rates, the spread of the Omicron virus variant and the Russia-Ukraine crisis.

After rising in the morning trade, the S&P/NZX 50 Index dipped early afternoon when the Reserve Bank hiked the official cash rate (OCR) another 25 basis points to 1 per cent.

But the index soon recovered, closing at 12,134.42, up 19.78 points or 0.16 per cent after hitting an intraday low of 12,085.53.

There were 62 gainers and 74 decliners across the whole market on volume of 38.89 million share transactions worth $142.75 million.

Greg Smith, head of retail with Devon Funds Management, said there was some relief that the OCR increase wasn't 50 basis points.

"The Reserve Bank commented it was a close call and it was maintaining some flexibility. Rate hikes are not on a predetermined path. With the housing market cooling and wage inflation lagging, supply constraints are presently the biggest challenge for the economy," said Smith.

The NZ dollar strengthened slightly, trading at US67.64c from a day's low of 67.19c against the American greenback at 5.45pm NZ time.

The local market was flooded with nine company financial results, most of them comforting for investors.

Spark increased 5.5c to $4.61 after reporting a solid half-year result, driven by a strong performance in mobile services. Net profit increased 21.8 per cent to $179m on revenue of $1.89 billion, up 5.2 per cent. It is paying an increased interim dividend of 12.5c a share on April 8.

Ventia Services Group, which listed in late November, was up 2c to $2.37 after beating its prospectus forecast for the year ending December. Net profit increased 23 per cent to A$146.8m ($156.82m) on steady revenue of A$4.55b. Ventia's work-in-hand has grown 28 per cent to A$16.8b and it is paying a final dividend of A$1.47c on April 16.

Publisher and broadcaster NZME climbed 18c or 15.79 per cent to $1.32 after reporting a 134 per cent rise in net profit to $34.64m on revenue of $349.2m, up 5 per cent, for the year ending December. It is paying a final dividend of 5c a share on March 23.

Precinct Properties rose 6c or 3.95 per cent to $1.58 after telling the market it is forming an investment partnership with Singapore sovereign wealth fund GIC. The partnership will initially buy five Precinct buildings and has the ability to grow to $1b. Precinct will have a 24.9 per cent stake.

Precinct reported a 75.8 per cent fall in net profit to $40.7m on steady revenue of $96.9m for the year ending December, but said it had strong leasing momentum. It is paying a 1.675c a share dividend on March 25.

Michael Hill International was up 3c or 2.11 per cent to $1.45 after reporting steady revenue of $327.1m and net profit of $37.1m despite losing 20 per cent of store trading days during the six months ending December 26. Canadian revenue increased 23.6 per cent, and Michael Hill is paying an interim dividend of 3.5c a share on March 25.

Steel & Tube, up 6c or 3.73 per cent to $1.67, reported record revenue of $282.18m, up 24.7 per cent, and net profit soared 252.7 per cent to $14.33m for the six months ending December. It is paying an interim dividend of 5.5c a share on March 25.

Fellow distributor and processor Vulcan Steel was down 20c or 2.02 per cent to $9.70.

Meridian Energy fell 26.5c or 5.01 per cent to $5.025 after reporting a flat half-year result. Net profit was down 36 per cent to $145m mainly due to reduced revenue from the Tiwai Point aluminium smelter, and total revenue was $1.67b, down 1 per cent.

Smith said the bigger picture for Meridian looks bright with the Tiwai Point contract likely to be extended beyond 2024 and plans getting underway for a green hydrogen plant that will increase electricity demand.

Ryman Healthcare rose 18c or 1.93 per cent to $9.51; Chorus was up 13c or 1.83 per cent to $7.24; Auckland International Airport gained 17c or 2.45 per cent to $7.12; and Air New Zealand increased 3.5c or 2.25 per cent to $1.59.

Sky Network Television climbed 24c or 9.8 per cent to $2.69; Serko was up 19c or 3.79 per cent to $5.20; and Scott Technology gained 10c or 3.13 per cent to $3.30.

Market leader Fisher and Paykel Healthcare was down 15c to $28.15; EBOS Group shed 27c to $40.93; Skellerup Holdings fell 20c or 3.28 per cent to $5.90; PGG Wrightson declined 11c or 2.05 per cent to $5.26; and Tourism Holdings decreased 7c or 2.67 per cent to $2.55.