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Air New Zealand rose 4% to 64.5 cents. Photo/Getty Images
The New Zealand Stock Market (NZX) took a bit more of a jump today, with the index moving into positive territory by the end of the trading day.
There was more news than yesterday –
Fletcher Building announced it was increasing plasterboard production and NZ Automotive Investments said it had lost confidence in its financier – but the market was still reasonably calm as the countdown to the start of the earnings season continues.
The S&P/NZX 50 Index rose 50.6 points, or 0.43%, to 11,753.48. Turnover on the main draw was light at just $83.6 million.
Grant Davies, investment adviser at Hamilton Hindin Greene, said the market was expecting “strong” corporate earnings numbers, but said that would also depend on the outlook for companies.
“But most companies won’t be able to give too many strong prospects, just as they haven’t been able to for the past two years,” he said. “It’s hard to parse, really, because it all depends on what’s coming up – and no one has a good read on that.”
Fletcher Building fell 0.19% to $5.37 after saying it ramped up the pace of its plasterboard production and expects to meet market demand by October, due to a slowdown winter construction.
Trade Window shares fell 2.6% to 74 cents after the import and export software company announced that chief executive Gavin de Steur was stepping down from his post at the end of August. De Steur will remain involved in an advisory capacity for the company for some time, the company told NZX.
Managing director AJ Smith said he understood De Steur had decided to look after a family business and his family going forward.
“Gavin has been a solid and much-appreciated contributor to our business since joining in 2020,” he said.
Smith said the COO role would not be filled at this stage and that the duties of the role would be split between Trade Window’s management team.
Medicinal cannabis company Cannasouth today released the results of its three-year preclinical study in neuropathic pain. The company said the study confirmed that the cannabinoids in medicinal cannabis could be effective in reducing “debilitating neuropathic pain” which Cannasouth says affects around 400,000 New Zealanders, or 8% of the country’s population.
Scientific director David Gill told NZX that neuropathic pain is currently “poorly managed” by traditional first-line treatment options available in New Zealand, and that the implications of the Cannasouth study results were “significant”. .
“Cannabinoids could provide a much-needed alternative treatment option for doctors and patients,” he said. “By publishing some of our findings, we want to bring doctors and patients with us on this journey of discovery.” Cannasouth shares were flat at 41 cents per share at the end of the day.
Auckland Airport rose 1.11% to $7,715 and Air NZ rose 4% to 64.5 cents. Davies said the airline’s shares were “jumping quite well” from a year earlier – but there was still some way to go to get back to 2019 levels.
Metro Performance Glass said residential and commercial builders should expect to pay more for glass due to increases in the price of imported raw materials and impending changes to thermal code requirements. The NZX-listed company said it plans to add another 5% price increase to its products next month, bringing cumulative price increases to 31% over the past 12 months. Its shares were steady at 25 cents per share early in the evening.
NZ Automotive Investments revealed that the commercial bank that provides its commercial and automotive finance facilities – which it would not name – told it the lender was unable to guarantee support for these facilities beyond their current expiration dates.
Shares of NZAI were up another 6% to 53 cents at the end of the day.
On the currency front, the New Zealand dollar was trading at 62.76 US cents at 5 p.m., down from 62.93 on Monday.
– Business office