Channel tipped as Mobil NZ suitor; Wall St advances

Channel Infrastructure is being tipped by Australian media as a potential suitor for Exxon Mobil’s New Zealand petrol station chain, which would extend the import terminal operator’s reach across the nation’s fuel supply chain.

That comes as trading desks remain optimistic that peace will come to the Middle East after US President Donald Trump said Israel and Lebanon reached a 10-day ceasefire agreement, helping buoy stocks on Wall Street even as oil prices pushed towards US$100 a barrel.

The meme momentum subsided for Allbirds after its pivot to artificial intelligence as it gets out of the footwear business, while local favourite Rocket Lab rallied after completing an acquisition and the launch of a space-focused exchange traded fund.

And the kiwi dollar dipped against a stronger greenback as US bond yields rose ahead of partial inflation figures from Statistics New Zealand today.

Deepening the supply chain

Channel Infrastructure will be in view today after The Australian’s DataRoom column reported the import terminal operator is a potential buyer of Mobil NZ, with a price tag of $500 million speculated for the petrol station chain. Channel is up 1.7% so far this year, outperforming the S&P/NZX 50 index’s 3.6% decline, and is seen as likely to benefit from price increase coming from the global energy shock.

Forsyth Barr analysts this week raised their price target on the stock by 11 cents to $3.20, keeping their ‘neutral’ rating on the stock, which closed at $2.97 yesterday.

“Channel Infrastructure's defensive characteristics have so far played out as expected,” analysts Andrew Harvey-Green and Hugh Lockwood said in a note. “While the Iran conflict remains a dynamic situation, it is looking increasingly likely that Channel's 2027 earnings will benefit from above average PPI, partially offset by higher opex and lower throughput volumes,” they said, referring to the producers price index.

Brent crude oil futures remained elevated at US$98.73 at 7am in Auckland after US officials indicated a tightening of the blockade of ships in and out of Iranian ports.

Still, investors remain optimistic that a lasting peace between the US and Iran will be agreed, with the Polymarket prediction market pricing in a 57% chance by the end of May and a 71% chance by the end of June. The volatility index, known as Wall Street’s fear gauge, dipped 0.1% to 18.16.

Stocks on Wall Street eased from record levels, with the three major indices up 0.2% after US President Trump said Lebanon and Israel have agreed to a ceasefire.

Company reports

Earnings season continued, with PepsiCo gaining after beating expectations, while Abbott declined after cutting its annual outlook

Charles Schwab dropped 6.1%, despite a sharp lift in quarterly profit, as it gave up earlier gains on proposed changes to margin requirements for day traders.

Netflix will report after the bell, while Paramount Skydance chief David Ellison tried to calm fears his firm’s acquisition of Warner Bros Discovery would lead to fewer movie releases, telling theatre owners the merged media giant would continue to deliver at least 30 films a year. NZX-listed Vista Group International has followed shifting sentiment in global box offices.

Allbirds dropped 28% to S$12.25, giving up some of its surge on a pivot to AI once it sells its footwear business, while Rocket Lab jumped 13% to US$83.14 after completing its acquisition of Mynaric and getting included in the new Global X space tech ETF.

The kiwi dollar fell to 58.87 US cents at 7am from 59.14 cents, with the greenback following a 3 basis point lift in US 10-year Treasurys to 4.31%.

Meanwhile, Infometrics said it expects the Reserve Bank to start hiking the 2.25% official cash rate in July on emerging inflation pressures from the global energy shock, while ASB Bank economists said they expect increases to begin in September, peaking at 3.25%.

Local data today include Stats NZ’s monthly partial inflation indicator and March spending on credit and debit cards.

Accordant Group’s rights to participate in a $6.7 million renounceable rights offering at 15 cents per share begin trading on the NZX today. The stock closed at 14 cents yesterday.

And prime minister Christopher Luxon’s future is again under question, with the New Zealand Herald reporting a challenge may come in the next fortnight. Minister Chris Bishop, seen as a rival for the leadership, played down the speculation in an interview on NewstalkZB. The National party’s support has been declining in public polls.

Reporting by Paul McBeth. Image from engin akyurt on Unsplash.