“Pre-Covid we outperformed the Australian market, but we didn’t participate in the data centre and artificial intelligence boom seen offshore. Our monetary policy has been tighter than most economies and hopefully, we are breaking out with an easing cycle,” he said.
“The market advance lately has been broader and not relying on just half a dozen stocks, and that’s encouraging. But over time a gross index with dividends should increase.”
Pushing the market higher were Fisher and Paykel Healthcare up 30c to $31.34; Mainfreight rebounding $1.56 or 2.1% to $75.76; Gentrack adding 22c or 2.1% to $10.72; Fletcher Building gaining 8c or 2.56% to $3.20; and Port of Tauranga up 11c or 2% to $5.60.
Energy stocks Mercury increased 17c or 2.51% to $6.95; Meridian gained 24c or 3.68% to $6.76; and Contact collected 16c or 1.89% to $8.63.
On Wall Street, the Dow Jones Industrial Average reached a new high after gaining 0.53% to 40,211.72 points, and all the talk after the unsuccessful assassination was about the ‘the Trump trade’ and how it would benefit the equity and cryptocurrency markets.
Another Trump presidency would signal tax cuts, higher tariffs and looser regulations.
US Federal Reserve chair Jerome Powell buoyed investor sentiment by saying the Fed would not wait for inflation to hit 2% before cutting interest rates.
At home, several small caps had healthy moves. Bremworth rose 3.5c or 8.33% to 45.5c; Steel & Tube was up 4c or 4.4% to 95c; Third Age Health improved 5c or 3.45% to $1.50; Solution Dynamics also increased 5c or 4.35% to $1.20; ikeGPS added 2c or 4.44% to 47c; and 2 Cheap Cars was up 2c or 2.44% to 84c.
Colonial Motor collected 20c or 2.94% to $7; Comvita rose 10c or 8.7% to $1.25; Napier Port gained 6c or 2.62% to $2.35; Vista Group added 5c or 2.17% to $2.35; Tower was up 2c or 2.16% to 94c; Restaurant Brands improved 6c or 2.16% to $2.84; and Carbon Fund rose 10c or 6.67% to $1.60 on increased carbon prices.
Scales Corp, up 1c to $3.35, has sold the Te Papa and Blyth Mr Apple orchards, totalling 186ha, to a Craigmore Sustainables fund for $34m. The fruit from the orchards will be packed, stored and marketed by Mr Apple.
Scales recently bought 240ha of Bostock Group planted orchard area, and the net impact of the two deals will be a medium-term increase in operating earnings (ebitda) of $6m-$8m.
Goodson said it was a sensible combination of deals – Scales are savvy operators.
EBOS Group was down 14c to $34.26 after telling the market it was not participating in any sale of the Prime100 pet food business (owned by Quandrant Private Equity), following speculation from the Australian Financial Review.
Freightways fell 22c or 2.6% to $8.23; Summerset Group was down 20c or 1.9% to $10.30; NZME declined 2c or 1.9% to $1.03; and Rakon shed 3c or 4% to 72c.
Heartland Group decreased 2c or 2.02% to 97c; Scott Technology was down 7c or 2.85% to $2.39; and Green Cross Health easing 2c or 2.41% to 81c.
Property stocks Argosy was down 2c or 1.88% to $1.045, and Precinct declined 2.5c or 2.08% to $1.175.
Software firm Blackpearl Group gained 3c or 5.26% to 60c and reported that subscription revenue reached $1.5m at the end of June, representing a 143% year-on-year rise and a 15% increase on the previous quarter.
Annual recurring revenue was $8.6m, a 162% year-on-year increase and a 16% gain on the previous quarter.
SkyCity Entertainment, down 12c to $1.51, told the market that Peter Fredricson, formerly with AMP, has been appointed chief financial officer from early next month.
The casino and hotel operator is presenting a new management team with Jason Walbridge having started as the new chief executive, and Julian Cook stepping down from chair and becoming an independent board director. The interim chief executive Callum Mallett is back as chief operating officer New Zealand.
