The local market has quietly gone about making steady gains over the last 12 months. At the end of October, the NZX 50 increased 7.2%, while the MidCap Index rose 20.1%.<\/p>\n
This compares with the S&P\/ASX 200 Index being up 8.8% over the past 12 months; the US S&P 500 gaining 19.9%; the Nasdaq Composite rising 31.1%, Japan\u2019s Nikkei 225 Index increasing 34.1%; and Hong Kong\u2019s Hang Seng up 27.5%.<\/p>\n
Matt Goodson, managing director of Salt Funds Management, said the local market had been battling a lousy economy, but it was now pricing in an improvement.<\/p>\n
\u201cThe market has responded to the interest rate cuts with the Reserve Bank making up for lost time following the money-tightening. <\/p>\n
\u201cNext year is the election and a little bit of candy being handed out [by the Government], and we can expect a good year for the market. It certainly has room to grow.\u201d<\/p>\n
Goodson said the market felt stronger than it actually was. There was a good breadth as seen by the number of stocks rising on the main board, and it was held back by the larger ones such as Fisher & Paykel Healthcare, Infratil and Ebos Group being flat.<\/p>\n
Fisher & Paykel was down 35c to $36.75; Infratil slipped 1c to $12.35; and Ebos eased 3c to $28.87.<\/p>\n
Summerset rebounded 25c or 2.16% to $11.85; T&G Global increased 12c or 5.36% to $2.36; Scott Technology was up 10c or 3.25% to $3.18; Foley Wines gained 3c or 5.26% to 60c; and SkyCity added 1.5c or 2.05% to 74.5c.<\/p>\n
Turners Automotive was up 14c or 1.92% to $7.45; Hallenstein Glasson gained 14c to $9.99; and Colonial Motor increased 26c or 3.25% to $8.26.<\/p>\n
Global marketer a2 Milk was up 12c to $10.92 after confirming the sale of its 75% shareholding in Mataura Valley Milk to Open Country.<\/p>\n
Westpac rose $1.65 or 3.77% to $45.40 after reporting full-year net profit of A$6.9 billion ($7.9b), down 1%, and net interest income of A$19.46b, up 3%. The New Zealand business contributed 16% of the net profit.<\/p>\n
The transtasman banking group said loans were up 6% to A$851.9b and customer deposits increased 7% to A$723b. There was 22% growth in the agribusiness portfolio, with the majority from existing customers.<\/p>\n
In New Zealand, Westpac has an 18% market share in consumer lending, 17% deposits and 16% business lending.<\/p>\n
Goodson said Westpac\u2019s share price rise was a surprise reaction to an in-line result that featured a low number of bad debts.<\/p>\n
Port of Tauranga was down 18c or 2.29% to $7.68 after setting a new net profit guidance of $137m-$147m.<\/p>\n
Goodson said some analysts interpreted this as a soft outlook but the port company has always been conservative in its earnings guidance. <\/p>\n
\u201cI wouldn\u2019t be too concerned about this \u2013 the business is going fine, particularly when they get their new berth extension.\u201d<\/p>\n
Other decliners were Gentrack, down 20c or 2.19% to $8.95, and Eroad, falling 5.5c or 2.82% to $1.895.<\/p>\n
Santana Minerals, down 1c to 88c, has lodged the application for consents under the new Fast-track Approvals Act for the Bendigo-Ophir Gold Project in Central Otago.<\/p>\n
The gold miner expects the project to generate 351 direct jobs, contribute $5.8b in gross domestic product and deliver $1.8b in government revenue through taxes and royalties over the initial 13.8-year life of the mine.<\/p>\n
Medical cannabis company Rua Bioscience declined 0.004c or 11.43% to 3.1c after telling the market it was raising $2m through a one-for-three rights issue at 2.5c a share. <\/p>\n
Rua said the capital raise was expected to fund the business to a self-sustaining position.<\/p>\n
Rua has increased its revenue to $1.9m from $322,000 in the 2024 financial year and is expecting to hit $3m by the end of the 2026 financial year.<\/p>\n