Mainfreight leads NZX50 higher as Willis plays down fuel framework

New Zealand’s S&P/NZX 50 index was one of the better performers in a mixed day across Asia, with Mainfreight and Freightways among the day’s gainers as finance minister Nicola Willis played down any changes in the fuel alert levels when she outlines the framework for imposing restrictions on Friday.

Infratil provided a tailwind to the bourse as the infrastructure investor hit a four-and-a-half month high after upgrading the 2027 earnings outlook for its CDC data centres unit, even as it played down expectations for what it will report in the year ending March 31.

Meanwhile, Air New Zealand defied a downgraded target price by Forsyth Barr analysts, with Australian carrier Qantas Airways seen as feeling the pinch most keenly in the South Pacific, having pared back NZ flights from its budget Jetstar subsidiary.

And Hallenstein Glasson Holdings rallied ahead of its first-half result on Friday in what’s set to be a busy day for retailers, with Warehouse Group also due to report and KMD Brands expected to complete the institutional part of its capital raising and reveal its own delayed earnings.

Finely balanced

The NZX50 advanced 47.69 points, or 0.4%, to 12,976.99, with 19 stocks gaining, 25 declining, five unchanged and KMD in the second day of a trading halt. Turnover across the main board was $129.6 million, of which Auckland International Airport accounted for $20.4 million as it dipped 0.5% to $8.04, on the day’s biggest volume of 2.5 million shares

Stock markets across Asia were mixed as investors fretted over whether Iran will negotiate with US President Donald Trump in the White House’s bid to end the Middle East conflict. The Islamic Republic rebuffed a draft peace proposal, coming back with its own demands, including an acknowledgment that it controls the Strait of Hormuz shipping channel and reparations. Brent crude oil futures rose 1.1% to US$98.32 a barrel at 5pm in Auckland.

Australia’s S&P/ASX 200 index fell 0.2% in late trading, while Hong Kong’s Hang Seng dropped 0.6% and Singapore’s Straits Times Index advanced 0.4%.

New Zealand’s government is poised to announce the framework and triggers for any action in restricting fuel, although finance minister Willis told Parliament there won’t be a change in the fuel response overnight.

Global logistics firm Mainfreight led the NZX50 higher, climbing 6% to $61.70 in its biggest one-day gain since November, while courier operator Freightways advanced 1.5% to $7.11. Move Logistics declined 2.6% to 19 cents.

Index heavyweight Infratil helped boost the NZX50 after lifting its 2027 forecast earnings for its CDC unit on the expectation of demand remaining robust, while also warning March 2026 earnings will come in at the bottom end of guidance. The infrastructure investor’s shares gained 2.5% to $11.46, having hit a four-and-a-half-month high $11.79 during the session.

Fly the friendly skies

Air New Zealand shook off a cut to its target price by Forsyth Barr analysts, rising 1.2% to 44 cents, following a solid lead from US carriers overnight. Forsyth Barr cut the target price to 35 cents from 50 cents and kept its underperform rating, saying rising fuel costs threaten to blow out the airline’s previous guidance and magnify losses in the coming years.

“Air New Zealand currently trades at circa 0.86 times trailing net tangible assets,” analyst Andy Bowley said in a note to clients. “Such a discount may appear attractive; however, Air NZ has traded as low as circa 0.39 times NTA historically. With NTA in decline given ongoing losses, we continue to see risk–reward weighted to the downside.”

Across the Tasman, Qantas Airways was down 2.3% at A$8.505 in late trading as analysts weighed up the impact on Australia’s national carrier, while Virgin Australia advanced 1.6% to A$2.56.

Back on the NZX, Hallenstein Glasson rose 2.7% to $9.65 ahead of its first-half result, having signalled pre-tax profit rose 32% in the period. Meanwhile, Warehouse was down 1.5% at a record-low 65 cents before it reports.

KMD Brands remained in a trading halt – last at 19.5 cents – as the retailer seeks to raise capital through a placement and accelerated renounceable entitlement offer. The owner of the Kathmandu and Rip Curl brands delayed its first-half result on Wednesday while it sought to settle the capital raising’s terms.

And local tech companies followed Wall Street’s cue overnight, with Serko bouncing from a six-year low, rising 2.8% to $1.49, while Gentrack advanced 1.3% to $7.11. Vista Group International declined 0.9% to $1.665. Outside the benchmark, Eroad gained 2.4% to 84.5 cents.

Oceania Healthcare posted the steepest decline on the NZX50, falling 3.4% to 71.5 cents, while Sky Network Television decreased 2.8% to $3.09 and Ebos Group declined 2% to $22.

Tourism Holdings declined 0.5% to $2.15 after getting a soft lead from US-listed campervan company Winnebago, which boosted second-quarter revenue on price hikes, but warned the Middle East conflict threatened a revival in customer demand.

Outside the benchmark index, T&G Global increased 0.4% to $2.38 on light volumes after the fruit exporter confirmed it’s hired Goldman Sachs to support controlling shareholder BayWa’s plan to sell its stake.

The kiwi dollar fell to 58.06 US cents at 5pm in Auckland from 58.23 cents yesterday, while the yield on 10-year government bonds nudged up 1 basis point to 4.73% after the latest government bond auction was overbid between 3.3-and-4.1 times for the $450 million of 2031, 2033 and 2051 notes sold.

Reporting by Paul McBeth. Image from Curious News.