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
Today the NZX50 is up +0.3%. This will put the index up +1.7% over the last month, up +7.1% from the start of 2024.
THE MAIN GAINERS
Today there are a total of 43 gainers. Chorus (CNU, #13) is the biggest gainer up +9%. CNU released their FY24 results today. The next biggest gain is from Channel Infrastructure (CHI, #37) up +3%, followed by Auckland Airport (AIA, #3) up +1.6%.
THE MAIN DECLINERS
There are 38 decliners today, the biggest from SkyCity (SKC, #26) who are down -4%. This leaves SkyCity down -7% over the month, -18% year-on-year. Vital Healthcare (VHP, #23) are next with a decline of -3% from Friday. Mainfreight (MFT, #7) follow closely down -2.4% for the day.
THE KEY ANNOUNCEMENTS
Summerset Group (SUM, #16) have released their financial results for the Half Year ending on the 30th of June, 2024. Announcing a +3% increase in underlying profit currently at $89.9 million. The total asset value has also increased by +17% now $7.4 billion. CEO Scott Scoullar says "We feel, in the current market, we've shown the continued strength of our sales pipeline, our disciplined approach to costs and the demand of our retirement living option despite the weak macroeconomic conditions we find ourselves in".
Empire Technology has given notice of its intention to make a partial takeover offer of 50.01% fully paid ordinary shares in Vital Limited (Vital). Empire has requested Vital for their management forecasts, commercial transactions, contracts in excess of $500,000, whilst also noting that they will also rely on the public disclosures of the company.
THE ANNUAL REPORTS RELEASED
There are two reports released today:
Summerset Group (SUM, #16) released their Half Year results ended 30 June 2024 today.
ANALYST COMMENT
Nikko AM Investment analyst Tim O'Loan commented on Summerset Group's Half Year results saying "With a result at the top end of guidance, and broadly in line with market expectations Summerset continues to perform well for its investors." In their results, SUM announced that they purchased new land in Napier (Hawkes Bay) where they say holds a "strong demand for retirement village homes". O'Loan comments on this land purchase saying "It is a clear sign of confidence despite stiff economic headwinds - and with its development pipeline, the company is well placed to continue its growth story as the economy improves over the coming years".
Update: Nikko's Michael De Cesare notes that the Chorus result came in at the very top end of their guidance range, broadly in line to a touch better than expectations and admirable given cyclical headwinds. The meaningful surprise sending the share price higher today relates to the dividend per share (DPS) guidance for FY25. They have updated their capital management policy to now target 70-90% of net operating cash flows after sustaining capex, for dividends. They also revealed that they view a growing portion of their assets as passive. Potentially, this could imply scope for an asset sale along a similar vein to when Spark sold their passive Towers.
SECTOR HIGHLIGHT
NZX50 Property Sector
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