New Zealand’s S&P/NZX 50 eked out a gain with Mainfreight and Fisher & Paykel Healthcare doing the heavy lifting as the local bourse joined most of Asia higher on optimism the US Federal Reserve will cut interest rates.
Australia’s S&P/ASX 200 was an exception, with Commonwealth Bank of Australia down almost 5% in late trading as investors second-guess its lofty valuations.
Meanwhile, local retailers Briscoe Group, KMD Brands and Hallenstein Glasson Holdings were on the red side of the ledger after Statistics New Zealand figures showed sluggish consumer spending on credit and debit cards in July.
And Rakon’s boardroom showdown ratcheted up a notch with two of the three independent directors facing an ouster by Brent Robinson calling it quits.
Nudging up
The NZX50 increased 6.86 points, or 0.1%, to 12,766.68, with 20 stocks gaining, 26 declining, and four unchanged. Turnover was $148.6 million across the main board.
The local bourse joined most Asian markets higher, although it was a close call with a sharp slowdown in the final 15 minutes of trading.
Across the Tasman, the ASX 200 was down 0.5% in late trading with CBA sliding 5% after reporting a 4% increase in cash earnings and a new deal with OpenAI to prepare the nation’s biggest bank for the artificial intelligence future.
CBA has been trading at richer earnings multiples than any other bank in the world and managed to defy critics and short sellers who struggle to justify the valuation.
That weighed on the broader financial services sector, with dual-listed banks down on both sides of the Tasman. Westpac Banking Corp slipped 1.9% to $37.06 on the NZX, while ANZ Group Holdings decreased 0.7% to $34.80. Heartland Group Holdings fell 1.3% to 79 cents.
Index heavyweights F&P Healthcare and Mainfreight buoyed the benchmark, rising 0.8% to $37.07 and 1.3% to $59.50 respectively. Globally, economists are increasingly expecting the US Fed to cut the federal funds rate when it next reviews monetary policy, while the delay to China facing stiffer US tariffs has eased some fears playing on investors’ minds.
The kiwi dollar traded at 59.57 US cents at 5pm in Auckland from 59.39 cents yesterday.
Argosy Property led the NZX50 higher, rising 1.8% to $1.165, while Precinct Properties NZ gained 1.2% to $1.24 and Goodman Property Trust advanced 0.5% to $2.015.
New Zealand’s Reserve Bank reviews the official cash rate next week and is widely expected to cut it to 3% from 3.25%, making commercial landlords’ dividends more attractive than the fixed distributions from bonds or term deposits.
Stay on target
Vital Healthcare Property Trust advanced 0.5% to $1.99 after reporting a 4.8% increase in operating earnings and meeting its guidance for annual distributions of 9.75 cents per unit. It expects to make the same level of distributions in the 2026 year.
KMD Brands posted the biggest decline on the day, falling 4% to 24 cents, while Briscoe Group slipped 0.8% to $5.55 and Hallenstein Glasson Holdings decreased 0.2% to $8.34 after Stats NZ figures showed flat core retail sales in July.
“These results reinforce our view of a gradual recovery in card spending, rather than a swift turnaround,” ASB Bank economist Yen Nguyen said in a note. “Headwinds are visibly affecting consumer spending patterns: spending on consumables, particularly essentials such as food and household supplies, is edging higher, while expenditure on durables and discretionary items is being cut back.”
Outside the benchmark index, Warehouse Group was unchanged at 82 cents and Michael Hill International rose 1.1% to 45.5 cents.
Spark New Zealand was the most heavily traded stock on a volume of 2.6 million, rising 0.4% to $2.55 after getting the thumbs up from analysts over the sale of a controlling stake in its data centre business.
SkyCity Entertainment Group fell 3% to 96 cents on a volume of 1.9 million after it was cleared yesterday to keep the licence to run its Adelaide casino.
Rakon was unchanged at 80 cents after independent directors Jon Raby and Lisbeth Jacobs withdrew their nominations for re-election at the upcoming annual meeting. Director Brent Robinson, whose family founded the high-tech manufacturer, opposed their re-elections and has put himself forward as an alternative chair. He’s also opposing the election of chair-elect Mark Bregman.
My Food Bag dipped 4% to 24 cents after warning margins will likely be squeezed in the first half at today’s annual meeting.
Reporting by Paul McBeth. Image from Curious News.