Retailers rise on Briscoe Group’s record result - Market close

Briscoe Group managing director Rod Duke. The company's share price increased 9c or 1.98 per cent to $4.64 after reporting record sales for the year ending January 28. Photo / NZME

Retailer Briscoe Group delivered the goods again and the latest United States data rekindled investor sentiment, but the New Zealand sharemarket remained uninspired.

The S&P/NZX 50 Index fell to a morning low of 11,770.84 and closed at 11,809.02, down 20.15 points or 0.17 per cent. The index has now fallen nearly 1 per cent so far this week.

There were 69 gainers and decliners over the whole market on volumes of 27.06 million share transactions worth $106.49 million.

Jeremy Sullivan, investment advisor with Hamilton Hindin Greene, said inflation in the US is still elevated and sticky but it is coming down and paves the way for two or three interest rate cuts this year. Technology stocks bounced back.

“Overseas markets are rising but ours is still languishing in the face of increased wholesale rates. We have interest rate-sensitive stocks, the retirement village sector is under pressure and we lack exposure to the high-growth technology stocks. We need rates to fall for our market to turn around,” Sullivan said.

Wall Street had another strong day even though the February consumer price index (CPI) was a little hotter than expected.

The US CPI increased 3.2 per cent annually, higher than the economists’ forecast of 3.1 per cent. The month-on-month headline figure rose from 0.3 per cent in January to 0.4 per cent last month. Core inflation, which strips out food and energy, climbed 0.4 per cent in February, compared with a forecast 0.3 per cent.

One commentator said the latest inflation numbers highlight the challenge faced by the Federal Reserve in the last mile of its fight against rising prices. The markets there expect the Fed, which meets next week, to begin cutting rates in June or July.

The Dow Jones Industrial Average was up 0.61 per cent to 39.005.49 points; the S&P 500 hit a new high after increasing 1.12 per cent to 5175.27; and the Nasdaq Composite rose 1.54 per cent to 16,265.64.

Technology stocks headed north again, with Nvidia increasing 7.16 per cent to a new high of US$919.13; Meta rising 3.34 per cent to US$499.75; Microsoft gaining 2.66 per cent to US$415.28; and Oracle ascending 11.75 per cent to US$127.54 after beating Wall Street earnings estimates.

At home, food price inflation for the year to February was 2.1 per cent, the lowest since the May 2021 year, with fruit and vegetable prices falling 9.3 per cent. The cost of restaurant meals and takeaways increased 6.7 per cent.

Briscoe Group increased 9c or 1.98 per cent to $4.64 after reporting record sales for the year ending January 28. Revenue was up 0.8 per cent to $791.95m while net profit was down 4.8 per cent to $84.22m. Briscoe is paying a final dividend of 16.5c a share on March 27.

Briscoe told the market “we are delighted to have produced another year of record sales against a macro retail environment which has seen many retailers struggling to hold their ground”.

Homeware sales increased 0.54 per cent and sporting goods 1.17 per cent, with online now representing 18.72 per cent of revenue. Briscoe has cash of $175.4m and no term debt. The retailer is planning a $100m state-of-the-art warehousing and distribution centre at Drury.

Sullivan said it was a solid result in a weaker economy and Briscoe provided a realistic outlook but no specific guidance.

Other retailers were boosted, with Hallenstein Glasson gaining 11c or 1.85 per cent to $6.05; The Warehouse adding 3c or 2.31 per cent to $1.33; and KMD Brands moving up 1c or 1.96 per cent to 52c.

Meridian Energy declined 7c to $5.68; Serko fell 14c or 3.5 per cent to $3.86; Auckland International Airport was down 10c to $8.16; Delegat Group decreased 19c or 3.08 per cent to $5.98; and Napier Port shed 8c or 3.28 per cent to $2.36.

Oceania Healthcare declined 2c or 3.23 per cent to 60c; Tourism Holdings was down 11c or 3.23 per cent to $3.30; Heartland Group shed 4c or 3.03 per cent to $1.28; Skellerup decreased 8c or 1.91 per cent to $4.10; and Accordant Group fell 4c or 4.76 per cent to 80c.

Fisher & Paykel Healthcare was up 16c to $24.56; Vulcan Steel rose 24c or 2.96 per cent to $8.35; Channel Infrastructure, which went ex-dividend, gained 3.8c or 2.73 per cent to $1.43; NZME increased 2c or 2.25 per cent to 91c; and Marsden Maritime Holdings gained 8c or 1.92 per cent to $4.25.

Synlait Milk, up 4c or 5.63 per cent to 75c, announced a seven-year partnership with Nestle and farmer suppliers to fund on-farm emissions reduction solutions, including effluent management systems, feed options, advanced soil testing, alternative fertilisers and tree planting. The investment will be shared three ways.