F&P Healthcare, power companies spur late rally for NZX 50

New Zealand’s S&P/NZX 50 index staged a late rally as Fisher & Paykel Healthcare and the major power companies helped buoy the local market despite more firms declining in a broadly soft day across Asia.

South Korea’s Kospi declined as Samsung Electronics’ soaring quarterly earnings still fell short of hyped expectations, while New Zealand’s Infratil – the local proxy for the artificial intelligence trade through its CDC Data Centres business – was the biggest drag on the NZX 50.

Australia’s Firmus Technologies closed its bookbuild amid reports the country’s second-biggest initial public offering could stall as investors pushed back on pricing.

New Zealand’s stock exchange operator declined after hosting a tech investor day, where mortgage broker and asset manager Squirrel said it was eyeing a potential listing on the NZX in 2027, while retail crime analytics firm Auror left the door open to going public.

Last minute reversal

The NZX 50 rose 7.81 points, or 0.1%, to 13,691.85 after a late rally in the final 15 minutes of trading. Within the index, 16 stocks gained, 26 fell and eight were unchanged.

The S&P/NZX 20 index futures contract for December slipped 0.1% to 7,515, with 80 lots traded for a value of $600,000, while the NZX 20 increased 0.1% to 7,493.24.

Turnover across the main board was $147 million, of which F&P Healthcare accounted for $26.6 million as the country’s biggest listed company rose 0.9% to $47.41.

“There’s a bit of a flight to safety in FPH,” said Matt Goodson, managing director at Salt Funds Management, referring to F&P Healthcare by its ticker.

The power companies helped buoy the NZX 50, with Contact Energy gaining 1.3% to $8.69, Mercury NZ advancing 0.6% to $6.75 and Meridian Energy increasing 0.4% to $5.44.

Sky Network Television posted the biggest gain on the day, up 2% at $3.62, while Stride Property rose 1.9% to $1.08 and Mainfreight climbed 1.9% to $65.50.

Stock markets across Asia largely followed Wall Street lower, with Brent crude oil futures up 2.2% at US$102.35 a barrel at 5pm in Auckland on reports the White House asked the Pentagon to draw up plans to strike Iran before the midterm elections, and as Houthi militants attacked two airports in Saudi Arabia.

South Korea’s Kospi dropped 2% in late trading, with Samsung Electronics dipping 0.8% as the company’s near-ninefold increase in quarterly operating profit fell short of hyped expectations. Japan’s Nikkei 225 fell 1.1% and Hong Kong’s Hang Seng declined 0.7%.

Australia’s S&P/ASX 200 index slid 0.7% with mining stocks following iron ore prices lower, while investors were occupied with the potential for the Firmus IPO to stall after the pushback on the neocloud AI infrastructure firm’s pricing.

“The big conversation piece today is the listing of Firmus and whether it’s going to happen,” Salt’s Goodson said. “The message is the bookbuild is closed and there’s a fair bit of speculation that it may not go ahead.”

Infratil dropped 2.3% to $13.38, the biggest drag on the NZX 50, while Ryman Healthcare dropped 4% to $1.68, its lowest level since 2009.

A new hope

NZX fell 1.4% to $1.46 after hosting a tech investor day showcasing nine companies, where Squirrel said it was eyeing a potential listing on New Zealand’s stock exchange next year, while Auror said it was at a size and scale where listing made more sense and was among options available to the firm.

Vista Group International dipped 0.4% to $2.80 after the cinema analytics firm reaffirmed earnings guidance at the NZX tech day.

Among other listed firms presenting at the investor day, AoFrio was unchanged at 5.4 cents, Scott Technology slipped 0.4% to $2.67, Black Pearl Group was unchanged at 25 cents and Pacific Edge fell 4.1% to 23.5 cents.

Outside the benchmark index, Taiko Critical Minerals rose 2.6% to 19.5 cents after the would-be miner lodged its reply to comments from the expert panel hearing its fast-track consent application for the southern block of its project.

Solution Dynamics was unchanged at 61.5 cents after making acting chief executive Susie Watts’ role permanent, while Green Cross Health slipped 1.5% to $1.93 after hiring Alison van Wyk as chief executive of pharmacy.

The kiwi dollar traded at 56.04 US cents at 5pm in Auckland from 56.09 cents yesterday.

Reporting by Paul McBeth. Image from Fisher & Paykel Healthcare.