Infratil led the S&P/NZX 50 index higher, with Australasian tech stocks following Wall Street higher as Nvidia closes in becoming the most valuable company ever.
The Reserve Bank’s rate review next week is coming into focus after strong US jobs growth and the passing of US President Donald Trump’s big, beautiful tax and spending law has investors rethinking the track of global rates.
Telco minnow Vital’s board has given the green light for shareholders to accept a takeover by Christchurch’s Tait International, saying no other bidders have come out of the woodwork since last year’s dalliance with Simon Herbert’s Empire Technology.
And the Financial Markets Authority is still investigating Senior Trust Capital after the senior living financier withdrew its public offer of shares.
Best week in eight
The NZX50 rose 62.12 points, or 0.5%, to 12,766.6, taking its weekly gain to 1.5%. There were 31 gainers on the benchmark on Friday, with 10 stocks declining and nine unchanged. Turnover across the main board was $92.7 million, with turnover subdued ahead of the Independence Day holiday in the US.
Stock markets across Asia were mixed after a strong lead from Wall Street, where investors embraced strong jobs growth, even though it would likely stay the hand of the Federal Reserve in lowering interest rates, while US President Donald Trump’s tax and spending law passed its final hurdle.
That’s also got the Reserve Bank of New Zealand’s upcoming rate review in focus, with the central bank expected to keep the official cash rate at 3.25% next week.
“The decision is far from simple and at about 20% priced we think the market is very much underestimating the chance of a cut next week,” ANZ New Zealand economists said in a note. “We’d put the odds at 40%-plus.”
The kiwi dollar traded at 60.73 US cents at 5pm in Auckland from 60.69 cents yesterday.
India’s Nifty 50 benchmark index was largely unchanged in late trading after the Securities and Exchange Board of India posted an interim order that quantitative trading firm Jane Street was banned from trading securities. The market watchdog impounded 48.4 billion rupees, claiming they were unlawful gains from market manipulation, an allegation the firm denies.
New Zealand’s stock market operator NZX was unchanged at $1.51.
Rising tech
Infratil led the local market higher, climbing 3.1% to $10.77 after saying the value of its CDC data centre business increased A$148 million in the June quarter due to the increase in its stake to 49.8%. The investment firm expects to invest A$250 million in CDC over the coming 12 months.
Tech stocks were broadly stronger across Australia and New Zealand after Wall Street’s rally, where Nvidia’s march higher has it closing in on a US$4 trillion market capitalisation. WiseTech Global and Xero were both up on the ASX.
Gentrack rose 1.9% to $12.68, Serko increased 1.3% to $3.16, and Vista Group International gained 1.2% to $3.50, while outside the benchmark index, Eroad was up 2.8% at $1.45, Scott Technology advanced 3.5% to $2.07 and Rakon climbed 6.6% to 65 cents.
Black Pearl Group dipped 0.9% to $1.17, paring its weekly gain to 64% after surging on strong sales for its new Bebop product.
Scales Corp posted the biggest decline on the benchmark index, falling 3.1% to $4.77. The apple exporter shed rights to its upcoming dividend on Monday.
Big volume
Ryman Healthcare was the most heavily traded stock on a volume of 1.6 million, slipping 0.4% to $2.34.
Tourism Holdings fell 1.8% to $2.20 after warning it will report underlying profit at the lower end of analysts’ forecasts of $27 million-to-$34.4 million in the June year.
Skellerup declined 1% to $4.80 after affirming guidance for net profit to be between $52 million and $56 million, with recent announcements on US tariffs meaning it expects to be able to offset the hit on earnings with sales growth and cost-cutting.
Outside the benchmark, Vital rose 2.4% to 43 cents after the telco’s board recommended shareholders accept the 45 cents-per-share offer from Tait, saying while at the lower end of the independent adviser’s valuation, no other bidders have emerged since last year’s partial takeover bid by Simon Herbert’s Empire Technology.
“While the board firmly believes the offer price of 45 cents per Vital share and 13 cents per Vital option does not adequately reflect the inherent value of the business and its network assets, a range of counterbalancing factors and the absence, as at today, of any competing offers, means the board is, on balance, unanimously recommending that shareholders accept the offer,” chair John McMahon said in a letter to shareholders.
And the FMA said it’s investigating senior living financier Senior Trust Capital after the firm withdrew a public offer of shares, saying it’s looking into disclosures made in past offer documents and associated advertising.
Reporting by Paul McBeth. Image from Curious News.
