NZX50, ASX200 dip as Chinese manufacturing slows; Pacific Edge hits 2-yr high
ANZ cops A$240 million in fines for a series of misdeeds.
Stock markets in New Zealand and Australia started the week on the back foot as soft Chinese industrial production and retail sales figures posed a few questions about the health of both nations’ major trading partner, although the upcoming US Federal Reserve rate decision remains top of mind for investors.
Dual-listed ANZ Group Holdings declined after the bank agreed to A$240 million in penalties with the Australian Securities and Investments Commission over widespread misconduct in its retail and institutional banking divisions, including misreporting its bond trading data to the Australian government and not refunding fees charged to dead people.
Pacific Edge jumped to more than a two-year high after the bladder cancer testing firm got some good news from its Medicare administrative contractor Novitas, which is going to include the Cxbladder Triage in next year’s panel considering whether to cover the product under the US Obamacare affordable healthcare scheme.
And New Zealand’s services sector activity shrank in August in the latest BNZ-BusinessNZ performance of services index, prompting Bank of New Zealand economist Doug Steel to wonder whether he’s been overly optimistic about the looming recovery.
Lethargic Monday
The S&P/NZX 50 index fell 19.59 points, or 0.2%, to 13,208.31, with 24 stocks declining, 24 gaining, and two unchanged. Turnover was $110.3 million, of which Fisher & Paykel Healthcare accounted for $8.8 million as it fell 0.8% to $37.70.
Australia’s S&P/ASX 200 index was down 0.2% in late trading, with mining stocks such s Evolution Mining and Newmont on the back foot as gold prices came off their peaks and soft Chinese factory production figures weighed on iron ore prices.
Chinese retail sales were similarly subdued, although that didn’t weigh on formula firm a2 Milk Co, which gained 0.7% to $10.24.
The local bourse was dragged down by blue-chip heavyweight companies, with Infratil down 1% at $12.35, Meridian Energy falling 1.1% to $5.64 and Ebos Group slipping 1.8% to $28.85.
Chorus led the benchmark index lower, falling 3.4%, or 34 cents, to $9.55 after shedding rights to its upcoming dividend of 34.5 cents per share.
Dual-listed lender ANZ fell 0.2% to $36.85 on the NZX after the big four bank reached a deal with ASIC over a raft of regulatory failures across the Tasman, totalling A$240 million, the biggest being an A$85 million penalty for its role in running a A$14 billion government bond offering in 2023. The penalties need to be ratified by the courts.
Westpac Banking Corp rose 0.9% to $43.30.
Investore Property fell 2.5% to $1.14 after holding its annual meeting, where shareholders were told the big-box retail landlord is seeing signs of improving investor sentiment and that there are opportunities to buy assets at good prices.
Surplus to requirement
Spark New Zealand declined 1.3% to $2.34 after its latest executive reshuffle, which will see the exit of general counsel Melissa Anastasiou and network and operations director Renee Mateparae at the end of the year.
Fletcher Building posted the biggest gain on the day, up 4.6% at $3.18, while Vital Healthcare Property Trust advanced 1.9% to $2.18.
Tower increased 0.6% to $1.76 after Forsyth Barr analyst James Lindsay affirmed his ‘outperform’ rating on the stock and a target price of $2.05, saying last week’s increased earnings guidance and trimmed gross written premium growth largely offset each other.
Auckland International Airport increased 1% to $7.87 after the national gateway said international and domestic passenger numbers rose in August. Air New Zealand gained 0.9% to 59 cents.
Outside the benchmark index, Pacific Edge surged 24%, or 3.9 cents, to 19.9 cents, having hit its highest level since June 2023 after Novitas said it will hold a panel to consider coverage of the Cxbladder test after its mention in the American Urological Association guidelines. The bladder cancer test maker was the most heavily traded stock on the exchange with 4.1 million shares changing hands.
TradeWindow increased 2.1% to 24 cents after saying it plans to seek a secondary listing on the ASX.
NZME rose 0.9% to $1.11. Filings today showed director Jim Grenon lifted his stake to almost 18% with his most recent purchase of 3.7 million shares last week.
The kiwi dollar traded at 59.63 US cents at 5pm in Auckland from 59.57 cents at 7am and 59.69 cents last week after the BNZ-BusinessNZ PSI showed services activity fell in August.
BNZ economist Doug Steel said the combined contractions in services and manufacturing activity suggested “the pace of our forecast recovery may be too optimistic” and created a small chance that the official cash rate might have to go lower than the 2.5% pencilled in by most forecasters.
“Despite our forecasts for a modest economic recovery, it will take time before it feels anything close to normal,” Steel said in a note.
