‘US earnings season has been so strong’
Mark Lister, investment director with Craigs Investment Partners, said markets are in great shape and “we are going along for the ride”.
“The US earnings season has been so strong, and it’s staggering how much money the leading tech and other companies are making.
“Infratil is our only stock that is related to the artificial intelligence and technology theme in a meaningful way, and it has provided a fantastic outcome for shareholders in a challenging year,” Lister said.
Markets were boosted by reports that the United States and Iran were nearing a peace agreement that would include a moratorium on nuclear enrichment.
The US has offered Iran a one-page memorandum of understanding to end the war, reopen the Strait of Hormuz and lift the US blockade on Iranian ports.
Wall Street
On Wall Street, the Dow Jones Industrial Average was up 1.24% to 49,910.59, nearing its high of 50,512. The S&P 500 and Nasdaq Composite climbed new peaks after rising 1.46% to 7365.12 and 2.02% to 25,838.94, respectively.
Across the Tasman, the S&P/ASX 200 Index was up 0.80% to 8,864.10 points at 6pm NZ time, and the Japanese Nikkei 225 had surged 6%; the Taiwan Taiex had risen 1.93% and the Hong Kong Hang Seng Index had increased 1.37%.
Brent Crude oil had fallen US$101.80 (NZ$170.86) a barrel on the latest peace negotiation.
Lister said that if the oil price slipped back further, the Reserve Bank of NZ might not need to hike the Official Cash Rate as aggressively this year, which would be a huge boost for consumers, borrowers and small businesses.
“The fall in oil price is the circuit-breaker that everyone is looking for, and a peace deal would only increase the optimism of the markets everywhere,” he said.
Local stocks
At home, utilities software firm Gentrack held an investor webinar for analysts and bounced back 27c or 7.34% to $3.95 following its significant earnings downgrade.
Lister said there were some bargain hunters out there, and Gentrack was finding some support after falling as harshly as it did. The stock is down more than 50% so far this year.
Ebos Group increased 49c or 2.3% to $21.75; a2 Milk was up 20c or 2.52% to $8.15; Napier Port gained 7c or 1.94% to $3.68; Port of Tauranga added 10c to a new high of $8.45; and Vista Group rose 10c or 5.05% to $2.08.
Turners Automotive fell 31c or 3.37% to $8.90, and 2 Cheap Cars was up 3c or 5.08% to 62c.
In the retail sector, Hallenstein Glasson was up 25c or 2.5% to $10.25, and The Warehouse shed 2c or 3.08% to 63c.
Tourism Holdings decreased 4c or 1.9% to $2.06, Blackpearl Group declined 3.5c or 4.64% to 72c, and Bremworth was down 2c or 2.76% to 70.5c.
Santana Minerals increased 2.5c or 3.33% to 77.5c after gaining Overseas Investment Office consent to buy 3680ha of land for the Bendigo-Ophir Gold Project in Central Otago – subject to obtaining resource consent to construct the gold mine.
The land purchase includes 797ha of the Bendigo Station for open-pit mining, and 2800ha of the Ardgour Station for administration offices, a processing plant, and ecological enhancement. The first gold production is expected in early 2028.
Locate Technologies increased 0.007c or 25% to 3.5c after resuming trading and providing additional information on its three-year services agreement with FedEx Express Australia that includes last-mile logistics technology for deliveries.
Health and wellness products supplier Me Today, up 0.001c or 2.04% to 5c, said revenue for the year ending June would exceed $7.4m, an increase of 27% on the previous year and 14% above its earlier guidance.
A $1.6m loss is expected in operating earnings (ebitda), an improvement on the February guidance, and Me Today products will be launched in Southeast Asia with distribution agreements in Singapore, Malaysia, Thailand and Vietnam.
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