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 essentially unchanged today. Over the month the index down -0.1%, compared to this time last year the NZX50 is currently up +8.1%.
THE MAIN GAINERS
There are 44 gainers on the mainboard today. The current leader is metal supplier Vulcan Steel (VSL, #28) up +5.3%. VSL's share price has been strong for the month currently up +9.7%. The Warehouse Group (WHS, #45) has the next biggest gain up +5.3% since the market opened, although the group still faces headwind as the share price has a -24% decline for the YTD, down -30% from this time last year. Scales Corp (SCL, #39) is next up +2.7% followed by Turners Automotive Group (TRA, #48) up 2.4%.
THE MAIN DECLINERS
There are 47 decliners today, the biggest from Fletcher Building down (FBU, #18) -2.6%. This is a direct reflection of the companies current financial struggles with their share price down -4.5% for the month, down -37% since the start of the year. NZ's largest energy generator Meridian (MEL, #2) has the next biggest decline today, down -1.8%, down -4.4% for the month. Compared to this time last year MEL is up +13.4%.
THE KEY ANNOUNCEMENTS
Michael Hill International (MHJ) have released their full-year report today with a mixed bag of results. MHJ's revenue increased by +4.2% now $644.9 million. However the company had a net loss after tax of $479,000, down heavily from the previous full year where they had a NPAT of $35.2 million. Managing director and CEO Daniel Bracken commented on their results saying “While FY24 earnings were disappointing, with challenging economic conditions and inflationary pressures impacting consumers across all markets, the business continued to execute on its clearly articulated strategy, focus on retail fundamentals and drive topline sales." As a result of the increased crime here in New Zealand, the company lost $5 million directly from their earnings as MHJ upgraded security measures in order to protect their customers, teams, and stores.
Scales Corp (SCL, #39) confirmed the appointment of Nadine Tunley as Chief Risk Officer, effective on the 1st of September. SCL's Board determined that Nadine will be a senior manager of SCL, and as a result will stand down as a Director from the 31st of August. Tunley was the former Chief Executive of Horticulture New Zealand (Hort NZ).
Ryman Healthcare (RYM, #13) released a number of changes for their Fit for the Future programme. The changes were listed as
- Introducing new pricing and choice for new residents
- Moving towards a new structure to support our villages
- Reset of approach to new village developments
- Further accounting charges to increase transparency and comparability
RYM is set to provide an update on the expected benefits/costs associated with the changes to the programme at the release of their half-year results. RYM Chair Dean Hamilton commented on the announcement saying "The Board and Executive team are confident that Ryman’s history of industry-leading innovation and clear focus on what is good enough for mum or dad, provides us with the foundation to deliver a stronger future and one that balances great care with great financial performance. Our residents will continue to remain at the centre of everything we do." It is a recognition of the strategic vulnerabilities in their business model that need fixing.
Precinct Properties (PCT, #19) announced the appointment of a new independent director, Alison Barrass. Barrass has over 30 years of experience with major international fast-moving consumer goods (FMCG) companies like PepsiCo, and Griffins Foods. Barrass is also an independent director at Suncorp NZ, and Spark.
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6 Comments
Nice to have this new daily review thanks!
But I'm not sure how widely read it will be - I suspect a lot of Kiwis still haven't regained their trust in our sharemarket after the 1987 crash!
A shame, as our wee little sharemarket was doing very nicely in the 2010s, and may be starting to show signs of life again:
https://tradingeconomics.com/new-zealand/stock-market
Anyway, for those of us who no longer bother with individual stocks, might be nice to include one or two of the NZ index funds listed on the NZX (Smartshares) in this report? Or a chart of the NZX 50 over time?
It's sad to see a once NZ flagship company like Fletcher Building become like a dinosaur floundering in the post-asteroid mire due to the sheer incompetence of former directors, CEO's and the plodding bureaucracy of former military-types in middle management. Fletcher down again today....10 or 11 cents....now $2.86 !
We have seen before how once-dynamic family companies have been run into the ground by so-called professional directors and useless CEO's when the family pulls out. These directors don't have the necessary entrepreneurial nous to direct a company like Fletcher's; they may have 'directorship experience' or a top academic degree, but more than that is necessary. I would say we needed types as competent as Albert Speer, Germany's head of war production during WW2....but without the Nazi affiliation, of course. Instead, we get the likes of Jenny Shipley ex kindergarten teacher and 2-year Prime Minister who helped bring Mainzeal to it's knees: an obvious case of the failure of political and management sinecures. .
I see 'Alan Gray' which is either an Australian fund manager or private equity firm (not to mention 'Schroeder') has been stealthily buying up Fletcher shares of late and it wouldn't surprise me if eventually an Australian private equity firm snaps Fletchers up leaving only a pittance for current shareholders.
The latest claim brought against Fletchers by the Commerce Commission is unwarranted; it has been driven by the hair-pulling and ululations of disaffected grasping builders and developers who think that the main reason they're not making an easy profit is because of the price of gib-board. Well someone was importing 'Elephant Board'.....what's happened to that?
So, this misguided and belated attempt by the Commerce Commission to placate the builders' wrath will probably end up merely adding another push towards Australian ownership of Fletchers....at a fire sale price.
I'm beginning to think that the Commerce Commission is just a waste of space.
ALL the useless governments we've had over recent decades have failed to see that working in a type of joint venture between government and Fletchers, perhaps with funding imput by the ACC and the Super Fund, could have helped solve our infrastructure problems as well as establishing a successful trades' cadet school funded jointly by the government and Fletchers to help mop up those 40% of uneducated school leavers. Such a joint venture could easily have captured all Australasian infrastructure developments. NZ has always punched above its weight in producing engineers probably due to our large Scottish heritage whereas Australia has never done so well on a proportionate basis. But our commerce specialists, on the other hand, are on a downward spiral.....you only have to look at the share price (pitiful credit control but trying to blame it all on the weather) of one of vaunted Infratil's darling subsidiaries, Mananwa Energy, to witness the decline of commercial management.
And the genocidal dismantling of the Ministry of Works has added its share of fuel to the fire: the burning down of the Casino Convention Centre would never have happened with MOW and clerks of work oversight.
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