Earnings season accelerated with some mixed results coming today, as Kiwi Property Group fell short of expectations, while Eroad and Turners Automotive Group rallied after beating analysts’ predictions.
Meanwhile, US President Donald Trump’s latest tariff sabre-rattling – this time against the European Union – injected some nervousness in markets, with stocks across Asia mixed and the kiwi surging against a hamstrung greenback.
The Vital telco minnow, formerly known as Teamtalk, halted its trading as it waits for a potential takeover from a credible party.
And across the Tasman, logistics software firm WiseTech embarked on its biggest ever acquisition, while the Healthscope private hospital operator has been put into receivership, although its lenders are making sure the 37 hospitals stay open.
All quiet on the western front
The S&P/NZX 50 index fell 49.28 points, or 0.4%, to 12,547.22, with 30 stocks declining, 16 gaining, and four unchanged. Turnover was a relatively quiet $95.5 million across the main board.
The kiwi dollar surged to 60.24 US cents at 5pm in Auckland from 59.15 cents last week, joining a rally against the greenback as the US currency stumbled into the “Sell America” trade after US President Donald Trump’s latest foray into tariff diplomacy, threatening the European Union with a 50% import levy.
That weighed on Wall Street and Europe last week, and stocks across Asia were mixed as investors unpick the latest ratcheting up of trade wars. Australia’s S&P/ASX 200 index was up 0.1% in late trading – buoyed by a rally in tech company Wisetech as it embarks on its biggest acquisition in the US – while Japan’s Nikkei 225 index gained 0.8% and Hong Kong’s Hang Seng sank 1%. US and UK markets are closed on Monday.
Retailers led the local market lower as KMD Brands dropped 4.6% to 31 cents and Warehouse Group fell 3.3% to 86 cents, while courier operator Freightways – often seen as a bellwether for the economy – declined 3.2% to $10.60.
Earnings season continued this week, with Wednesday and Thursday the big days when the biggest companies report and the Reserve Bank is expected to cut the official cash rate.
In the meantime, results today were mixed.
Turners Automotive Group climbed 3.3% to $6.20 after reporting a record result.
“It’s interesting that the automotive retail isn’t delivering and it’s more the other parts of the business, but in this economic environment that’s true to form with how the economy is running,” said Peter McIntyre, an investment adviser at Craigs Investment Partners.
Keep on trucking
Outside the benchmark index, Eroad surged 14% to $1.07, a three-month high, after the telematics hardware and software firm delivered a 6.8% increase in revenue and signalled modest growth in the year ahead.
McIntyre said there were some notes of caution, but it was otherwise a good result.
“They hit their guidance for revenue of between $190 million and $195 million and that might be giving some confidence around their future guidance as well,” he said.
Meanwhile, Kiwi Property Group fell 2.3% to 87 cents after reporting a 7% decline in adjusted funds from operations, falling short of expectations. It raised its forecast dividend for the March 2026 year.
Vital Healthcare Property Trust posted the biggest gain on the NZX50, rising 4.4% to $1.90. Across the Tasman, private hospital operator Healthscope was tipped into receivership, but its 37 hospitals will stay open after securing funding support from lenders Commonwealth Bank of Australia and Westpac Banking Corp.
Northwest Healthcare Properties Real Estate Investment Trust, which has ties to Vital Healthcare’s manager, is Healthscope’s biggest landlord.
And telecommunications minnow Vital halted trading of its shares – last at 27.5 cents – as it waits for a takeover notice from a credible third party.
Reporting by Paul McBeth. Image from Curious News.
