Fisher & Paykel Healthcare paced the S&P/NZX 50 index higher as the local market played catch-up after the Anzac Day public holiday, with a softening tone from US President Donald Trump on the China trade stoush and standing of Federal Reserve chair Jerome Powell being welcomed by Wall Street last week.
Meanwhile, Fonterra Cooperative Group is pressing ahead with plans to sell its Mainland Group consumer business after losing a court bid to preserve its licensing agreement with Australia’s Bega Cheese.
Pacific Edge tumbled as the bladder test maker regroups after losing its Medicare coverage in the US, while Rakon surged on news that it’s cut ties with a Chinese customer and expects to report earnings in the middle of guidance.
Japan’s Nikkei was in the green, bolstered by Toyota Industries – which supplies parts to Toyota Motor – considering a ¥6 trillion buyout.
Up for a third day
The NZX50 rose 81.05 points, or 0.7%, to 12,098.89, with 24 stocks gaining, 20 falling and six unchanged. Turnover across the main board was $151.1 million.
Australia’s S&P/ASX 200 index up 0.7% in late trading, while Japan’s Nikkei 225 index advanced 0.3% as Toyota Industries said it is exploring a buyout backed by carmaker Toyota Motor and other group members through a special vehicle.
F&P Healthcare paced the local benchmark higher, up 3.2% at $34.62.
“It’s the biggest contribution on our bourse and leading the charge higher as we put on a catch-up phase,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene.
Gentrack led the NZX50, climbing 4.3% to $11.47, while Westpac Banking Corp gained 3.6% to $35 and ANZ Group Holdings advanced 2.7% to $31.56.
Property For Industry was unchanged at $2.08 after raising its earnings guidance as a higher rate of depreciation than expected reduced its current tax bill.
Precinct Properties New Zealand was the most heavily traded stock on a volume of 10.6 million, slipping 0.5% to $1.055.
Not time yet
Fonterra Shareholders’ Fund units fell 1.8% to $5.45 after the New South Wales Supreme Court rejected an application by the milk processor for declarations to preserve its licensing agreement with ASX-listed Bega Cheese, which contain change of ownership provisions. The court said it wouldn’t be appropriate to do so without a particular structure and sale process settled on.
KMD Brands posted the biggest decline on the NZX50, falling 2.9% to a33.5 cents, while Meridian Energy slipped 2.8% to $5.52 and Mainfreight decreased 2.5% to $56.26.
Pacific Edge tumbled 24%, or 2.7 cents, to 8.7 cents after the cancer detection firm said it won’t seek re-coverage of the Cxbladder Detect given no new evidence can be submitted for reconsideration, and that it’s working through its next plan.
Hamilton Hindin Greene’s Simpson said Pacific Edge has about 11 months of cash left and will probably need to raise capital again.
“They may even track towards a potential trade sale of IP to another healthcare provider,” he said.
Rakon climbed 18% to 49 cents after saying it expects to report earnings in the middle of guidance, and that it’s made the decision to drop a Chinese client who accounted for 5% of revenue. The high-tech components maker attracted several suitors in 2023, but wasn’t able to close a takeover, with the geopolitical situation a concern for US buyers. And the company’s chair Lorraine Witten will step down at this year’s annual meeting.
Millennium & Copthorne Hotels New Zealand was unchanged at $2.80 after its independent directors recommended minority shareholders reject the increased $2.80 takeover price offered by controlling shareholder City Developments Ltd, with the caveat that there are potential consequences of staying invested that they may want to consider.
