Here are the key things you need to know about in the NZX markets over the past 24 hours. Changes are as at 3:00 pm and may change when the market closes at 4:45 pm.
WHAT THE NZX50 IS DOING
The NZX50 is down -0.4% so far today. That means it is down -1.8% over the past five days, up +1.4% from this time last month.
THE MAIN GAINERS
Today there are a total of 43 gainers, with the biggest from Kathmandu Brands (KMD, #50) up +4%, putting their monthly gain up to +31%. Skellerup Holdings (SKL, #33) is the next biggest gain up +3% from this time yesterday. Outside of the NZX50, produce company Seeka (SEK) is up +4% as they announced their FY24 results.
THE MAIN DECLINERS
There are currently 45 decliners today. On the announcement date of their FY24, SkyCity Entertainment are down -2.5%. Vista Group (VGL, #36) who sit at 36th on the NZX50 have the next biggest decline down -2%. Synlait Milk who have been in the main gainers since the release of their FY24 results now sit down -7% for the day.
THE KEY ANNOUNCEMENTS
Synlait Milk (SML) made an announcement in April discussing the 'strategic review' of its North Island assets, that is for its manufacturing facility located in Pokeno and its blending and canning facility in Auckland. SML says its review is now coming to the final stages and mentions that it is weighing collection and processing of milk in the North Island. Further announcements for the review are expected prior to their FY24 results due at the end of September.
Today the Commerce Commission released the final expenditure decision for price quality period two (PQP2) for Chorus (CNU, #13). The decision for capital and operating expenditure allowance for fibre operation is $1,140 million up from the draft decision of $1,126 million in April. The total operating expenditure allowance is also up from the draft decision at $790 million from $691 million.
Investore Property (IPL, #40) has entered into an unconditional agreement to divest into two non-core regional properties, IPL also acquired Bunnings Westgate in Auckland. As a result of these transactions the IPL portfolio to the Auckland Market has increased to 42.5% from 27.2% by value, whilst their regional weight decreases by a corresponding amount.
THE ANNUAL REPORTS RELEASED
Three companies released their FY24 results today:
- Auckland International Airport (AIA, #3)
- Genesis Energy (GNE, #18)
- SkyCity Entertainment Group (SKC, #26)
ANALYST COMMENTS
SkyCity Entertainment:
Nikko AM's Mei Zi Ho has described the results from SkyCity as no- surprises. "The results were pre-guided and the company has been diligent in keeping the markets informed against a very difficult operating backdrop created by regulatory overhangs".
Auckland International Airport:
Owen Batchelor from Nikko AM commented on the FY24 results from AIA saying "With operating earnings fuelled by post Covid passenger recovery and higher aeronautical pricing flowing through, the result and future guidance are both broadly in line with what the market was expecting". As for the big redevelopment plans currently undergoing at the Airport, Batchelor also says "At this stage, the balance sheet looks comfortable but there is still a huge amount of capital expenditure to be spent as part of the airport's redevelopment"
SECTOR HIGHLIGHT
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