SkyCity falls 6% as NZX 50 trades flat
The S&P/NZX 50 traded flat on Tuesday, ending the day at 12,421.09 points.
More than 33 million shares traded hands, amounting to $108.6m in total value traded.
Senior research analyst at Craigs
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NZ Herald
9 hours ago
- NZ Herald
NZ sharemarket rallies past 13,000 points after Reserve Bank rate cut
The Reserve Bank cut the OCR today by 25 basis points to 3%, in line with market expectations. The Kiwi dollar fell after the decision, while in the interest rate markets, the two-year swap rate fell by 15 basis points to 2.97% and 10-year bond yields dropped by nine basis points to 4.41%. Hamilton Hindin Greene investment adviser Jeremy Sullivan said the market was buoyed by the Reserve Bank's decision. 'It's primarily the oath for future cuts to 2.5% by the year's end, the market is pretty happy with it,' Sullivan said. 'Members within the committee who see it justified to cut further heavily lean on the next one, giving more credence for 50 more basis points to come off this year.' The results season continued with full-year results from Spark and Fletcher Building. Spark chairwoman Justine Smyth said the last year was 'one of the most challenging periods in Spark's history' as its full-year reported net profit fell 17.7% to $260m. The telco's revenue dropped 2.5% to $3.75 billion, and its total capital expenditure was down 17.2% to $429m. Sullivan echoed those sentiments, calling it a 'challenging year' for the business. 'It had a lower customer spend, although it did deliver on its guidance maintained ahead of earnings. I would say that a cut in the dividend is expected.' Spark's share price rallied 3.63% or 9c to $2.57 after 6.6 million shares changed hands, the highest volume of the day, with turnover worth $16.9m. Elsewhere, Fletcher Building released its full-year results, putting a net loss of $419m down to tough market conditions. 'The main message is another tough year after several tough years,' said Sullivan. 'A wee shining light was that the convention centre is on track for handover in 2025. Although the lack of colour on the sale of the construction business was a bit disappointing.' Revenue for the business fell 9% to $7b, but a highlight was its net debt of $999m, an improvement from $1.77b last June. Fletcher's share price rose 0.33% or 1c to $3.08 with 1.3 million shares changing hands on turnover worth $4.1m. Other big movers on Wednesday included Fisher & Paykel Healthcare, with its share price lifting 70c to $37.65 on turnover worth $16.2m. Meanwhile, Mainfreight's share price fell 60c or 1.01% to $59 on turnover worth $21.6m. Wall Street's stocks finished mostly lower on Tuesday, dragged down by tech companies retreating from record highs, while a Home Depot earnings report lifted retailers. The broad-based S&P 500 Index fell 0.6% to 6411.37, while the tech-focused Nasdaq Composite Index fell 1.5% to 21,314.95. The Dow Jones Industrial Average rose a marginal 10.5 points to 44,922.27, pulling back after hitting a record high on the back of Home Depot's quarterly report. Shares of the home improvement company rose 3.2% after slightly missing analyst expectations but maintaining its full-year forecast. Target, Walmart and Lowe's reports are due later in the week with all eyes on potential impacts on consumers from US President Donald Trump's tariffs. – Additional reporting AFP Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
NZ Herald
11 hours ago
- NZ Herald
Two more rate cuts to come: Reserve Bank to the rescue as recovery stalls
'We thought lingering concerns about near-term upside inflation risks would prevent such a large change in view from the RBNZ today. But while both upside and downside risks were mentioned in the press release, the focus is clearly very much on the latter.' ANZ is now forecasting the next two 25bp cuts to come in October and November (previously it had November and February). The move could push mortgage rates lower, said property analysts Cotality. However, the general gloomy outlook for the economy meant there was not likely to be any sudden outlook for the housing market. 'If anything, the possibility of more falls in mortgage rates than previous thought could lift activity and house prices a bit. But those rate changes may be fairly minor,' said Cotality Chief Property Economist Kelvin Davidson. 'And in the meantime, as the RBNZ has indicated, the economic and labour market outlook is still disappointing, which will tend to weigh on housing, as it's already doing.' The RBNZ painted a downbeat picture of the economy in its monetary policy statement. New Zealand's economic recovery stalled in the second quarter of this year, the RBNZ said. 'Spending by households and businesses has been constrained by global economic policy uncertainty, falling employment, higher prices for some essentials, and declining house prices.' In an unusual split decision, the monetary policy committee debated three policy options: keeping the OCR on hold at 3.25%; cutting the OCR by 25 basis points to 3%; or cutting by 50 basis points to 2.75%. Only the latter two options were put to the vote. The Committee voted on the options of either reducing the OCR by 25 basis points or reducing the OCR by 50 basis points. By a majority of four votes to two, the Committee agreed to decrease the OCR by 25 basis points to 3%. But the range of options discussed suggests a wide divergence of opinions on the committee, with at least one member still concerned about inflation risk. The release moved markets with the Kiwi dollar falling by half a US cent. On the interest rate markets, the two-year swap rate fell by 15 basis points to 2.97% while 10 year bond yields dropped by nine basis points to 4.41%. The NZX50 stock market also rallied on the decision. Liam Dann is business editor-at-large for the New Zealand Herald. He is a senior writer and columnist, and also presents and produces videos and podcasts. He joined the Herald in 2003.
NZ Herald
14 hours ago
- NZ Herald
Hope amongst gloom: Fletcher Building's Andrew Reding on three achievements
Revenue fell 9%, losses nearly doubled, dividends remain suspended and revenue in all business units declined. But Reding remained hopeful. The Pūhoi to Warkworth motorway. Photo / NZME 'We've reduced the number and scale of legacy issues, allowing us to focus on the future,' he said. 'The net debt coming down is excellent. We wanted to sort out the legacy issues. The other achievement is the decentralisation of the business and putting more empowerment within the units.' The company was being 'right-sized' for the reality of the market, 'but we still want to have the ability to move quickly if the market does actually take off'. Yet Reding is not expecting improvements in market conditions in the 2026 financial year. The New Zealand International Convention Centre, which is due to open in February. Photo / Michael Craig 'It's a very patchy, volatile market out there at the moment. We're being far more disciplined with our capital spend so if we spend a penny, it's as though it's a shareholders' penny.' In June, the company reached a settlement with NZ Transport Agency Waka Kotahi on the Pūhoi to Warkworth motorway project. It also settled its insurance claims for weather and landslides that hit the project. Fletcher's annual report says it 'anticipates handing over the NZICC [New Zealand International Convention Centre] to SkyCity during the second half of 2025, prior to SkyCity's announced opening in February 2026″. SkyCity is suing Fletcher over the NZICC's late delivery, but Reding reiterated the company would defend itself vigorously. Moving on to the Wellington International Airport Carpark project. Fletcher Construction completed the multi-level carpark in late 2018. But the annual report said the airport had alleged building and adjacent stormwater drainage defects. It is claiming the cost of remediation and other related losses of approximately $40m. The Wellington International Airport Carpark, built by Fletcher Building. Photo / Mark Mitchell 'As at 30 June 2025, the stormwater drainage remediation works were complete and the project was issued a Final Completion Certificate. Fletcher Construction continues to seek to agree with WIAL [Wellington International Airport Limited] a remediation solution to the quality issues alleged by WIAL and to settle other disputes between them in relation to the project,' the company said. Asked today what the next steps were, Reding said: 'That's a good question. We've been trying to get in there to remediate, so we're hopeful we will be allowed on site.' Reding headed a strategic review, implemented a new structure, cut costs and jobs and the company said it could sell off its construction division, although no advancements were announced in the result. Litigation being brought over the sale of its Australian Tradelink division was 'more noise than substance, not something we're too worried about', Reding told the Herald. Anne Gibson has been the Herald's property editor for 25 years, written books and covered property extensively here and overseas.
