New Zealand’s S&P/NZX 50 index rose for a fifth day, with Infratil pacing gains as it shook off previous losses over US President Donald Trump’s big and beautiful bill cutting tax credits for the infrastructure investor’s Longroad Energy investment.
Air New Zealand followed its trans-Tasman rival lower as Qantas Airways was buffeted by a cyberattack on one of its call centres.
Freightways is watching for any fallout from the receivership of Airwork Holdings on a joint venture between the two firms.
And Black Pearl Group soared after reporting rapid growth from its new Bebop product.
The green mile
The NZX50 rose 49.76 points, or 0.4%, to 12,784.29, with 27 stocks gaining, 17 falling and six unchanged. Turnover was $111.7 million across the main board.
The kiwi dollar rose to 61.01 US cents at 5pm in Auckland from 60.93 cents yesterday as investors fretted about the impact of US President Donald Trump’s tax and spending bill on the federal government deficit, sapping demand for the greenback.
Infratil paced gains on the index as it rose 1.8% to $10.64, snapping two days of declines as investors weighed up the impact of the White House’s removal of tax credits for US renewable projects on the investment firm’s Longroad unit.
“The tax advantages that they get from building renewable projects run out earlier than what would’ve been the case,” said Matt Goodson, managing director at Salt Funds Management. “They’ve really got to get cracking in getting their current projects into production and it probably means that the potential future projects that they have may be harder to execute.”
Goodson said school holidays affected trading volumes, while tweaking of investment portfolios was also pushing prices around at the start of the month.
Oceania Healthcare led the bourse higher, rising 3% to 69 cents, while a2 Milk Co advanced 2.5% to $8.75.
Interest rate sensitive property stocks were broadly stronger, despite growing expectations for the Reserve Bank to keep the cash rate steady next week. Property for Industry increased 2.4% to $2.335, Argosy Property gained 2.3% to $1.11 and Precinct Properties NZ rose 2.1% to $1.225.
SkyCity Entertainment Group gained 2.3% to 91 cents as it followed US casino operators higher after Macau reported strong gaming revenue growth for June.
Air New Zealand declined 1.7% to 57 cents. Across the Tasman, rival Qantas was down 2.4% in late trading after Australia’s national carrier said 6 million of its customers were caught up in a cyberattack at one of its call centres.
Freightways dipped 0.4% to $11.25 after the courier company said it’s monitoring the receivership of Airwork Holdings, its partner in the Parcelair joint venture.
NZX fell 1.3% to $1.50 after the stock market operator announced the exit of Anna Scott as chief executive of its Smart funds management unit, as she shifts to take up the lead role of a global financial services group’s New Zealand office.
Gentrack posted the biggest decline on the NZX50, falling 3.6% to $12.29, while Kiwi Property Group was the most heavily traded stock on the benchmark with a volume of 2.6 million shares as it rose 1.1% to 89.5 cents.
Outside the benchmark
Warehouse Group was unchanged at 80 cents after Forsyth Barr analysts trimmed 5 cents from their target price on the stock to 85 cents, and retained their ‘underperform’ rating, saying the challenging consumer environment and looming threat from Ikea make for an unattractive risk/reward ratio.
T&G Global rose for a fifth session, up 5.6% at $1.90, its highest level since February last year. The fruit exporter’s controlling shareholder BayWa is selling assets around the world to shore up its own balance sheet.
NZME fell 1.7% to $1.15 on very light volumes as rival Stuff completed its deal with Trade Me as the online marketplace takes a 50% stake of Stuff Digital.
Would-be goldminer Santana Minerals rose 1.7% to 58.5 cents after the company agreed to buy the nearby Ardgour Station for $25 million. The neighbouring landowner had competing land uses over parts of the proposed mine.
Black Pearl Group surged 28% to 91 cents after the software firm's artificial intelligence-driven Bebop product notched up $1.2 million of annual recurring revenue in just 45 days, twice the pace of growth of another standout product for the firm.
Trade Window Holdings rose 6.7% to 19 cents after signing a strategic partnership with Australia’s Freight & Trade Alliance peak body representing more than 530 supply chain companies.
Blis Technologies jumped 47%, or 0.7 of a cent, to 2.2 cents after the probiotics firm settled a patent issue and signed a new five-year agreement with Bluestone Pharma GmbH. Blis was the most heavily traded stock on the exchange on a volume of almost 6 million shares.
Shares of TruScreen were halted at 2 cents while market supervisor NZ RegCo engages with the cervical cancer diagnostics firm over its recent $4 million capital raising through a placement and share purchase plan.
Reporting by Paul McBeth. Image from American Public Power Association on Unsplash.
