“We’ve had a few downgrades lately and this reflects lower consumer activity and spending in a slowing economy, which is all music to the Reserve Bank. It takes away the bank’s need to be hawkish and poses the question of when do we see rate cuts,” he said.
In the US, the Dow Jones Industrial Average was up 0.87 per cent to 37,404.35 points; S&P 500 increased 1.03 per cent to 4746.75; and Nasdaq Composite rose 1.26 per cent to 14,963.87.
At home, Synlait Milk fell 6c or 6.06 per cent to a new low of 93c after telling the market the sale of Christchurch-based Dairyworks cannot be assured even though discussions with potential buyers are continuing.
Synlait is talking with the banking syndicate about a plan to reduce its debt and repay at least $130m by March 28 next year. Synlait acknowledged it has been a challenging year, and is working to reset its business.
The dairy company is also embroiled in arbitration with a2 Milk, up 2c to $4.60, following a2 Milk’s move to cancel the exclusive arrangement with Synlait for manufacturing and supplying infant formula in China.
Synlait said it expects to continue manufacturing the a2 Milk Chinese-label products through to September 2027 as it holds the China regulatory license attached to its Dunsandel processing plant.
Move Logistics declined 3c or 5.17 per cent to 55c after revising its first-half operating earnings (Ebitda) to $11.5m-$12.5m because of lower customer demand. Move said economic and sector headwinds continue to impact customer volumes, costs and growth opportunities.
The energy sector underpinned the market, with Mercury rising 10c to $6.47; Meridian gaining 7c to $5.48; and Manawa up 5c to $4.21.
The two Hawke’s Bay stocks had strong days. Napier Port increased 14c or 5.83 per cent to $2.54, and apple and pet ingredients exporter Scales Corp rose 20c or 6.47 per cent to $3.29.
Delegat Group rebounded 20c or 3.33 per cent to $6.20; Arvida Group increased 3c or 2.97 per cent to $1.04; PGG Wrightson was up 6c or 1.82 per cent to $3.36; Allied Farmers added 3c or 3.95 per cent to 79c; and 2 Cheap Cars gained 2c or 2.35 per cent to 87c.
Utility pole measurement provider ikeGPS rose 5c or 10.64 per cent to 52c after telling the market it has signed a new $3.7m contract with a Fortune 500 company in the US.
Over the next five years, more than 1000 engineers will use ikePGS’ new software platform and represent a tenfold increase in annual recurring revenue from this customer, with subscription revenue of $700,000 a year.
Freightways was down 13c to $8.25; Heartland Group declined 4c or 2.76 per cent to $1.41; Green Cross Health shed 3c or 2.63 per cent to $1.11; KMD Brands decreased 2c or 2.78 per cent to 70c; and Tourism Holdings was down 5c to $3.80.
AFT Pharmaceuticals, declining 5c to $3.35, has formed a partnership with Belgium’s Hyloris Pharmaceuticals to develop a product for the treatment of burning mouth syndrome.
MHM Automation, unchanged at $1.65, has been advised that Bettcher Industries has received Overseas Investment Office consent to acquire its 100 per cent shareholding.
Health and wellness company Me Today, unchanged at 2c, has arranged continued BNZ financing support through to the end of June 2026, as well as extending the repayment of the Jarvis Trust loan to that date.
