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 gains +0.4% today, dropping the month-on-month decline to -0.7%. The index now sits at +11% year-on-year.
THE MAIN GAINERS
There are currently 44 gainers on the market today. On the announcement of its new project with Seadra Energy Inc, Channel Infrastructure (CHI, #37) jumped +7.1% putting the company at up +19% for the year. Kathmandu Brands (KMD, #50) recover from yesterday's decline, up +5.2%. SkyCity Entertainment (SKC, #28) gained +5.1%, down -25% for the year. Gentrack (GTK, #26) continue to climb going up another +4.3%. The company now lift to a +128% gain year-on-year.
Channel Infrastructure
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THE MAIN DECLINERS
There are a total of 39 decliners. Mercury Energy (MCY, #5) have the biggest loss down -2.4%. Over the last year the energy company are up +2.9%. Vista Group (VGL, #36) decline -1.5% as the company looks to front another special shareholders meeting due to another request by Potentia. VGL have performed year-on-year gaining +73.2%. Stride Property Group (SPG, #35) decline -1.4% taking its monthly decline to -6.8%. Lastly Manawa Energy (MNW, #22) drop -1% following a strong month for the company gaining +25.6%.
Mercury Energy
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SMARTSHARES EFTs
| 1-day | 5-day | 6-month | YTD | 1Y | |
| NZ Top 50 ETF (FNZ) | -2.4% | +2.5% | +0.3% | +2.7% | +4.8% |
| NZ Top 10 ETF (TNZ) | -1.5% | -0.7% | +2.1% | +2.7% | +8.2% |
| S/P NZX50 ETF (NZG) | -1.4% | +1.5% | +2.2% | +5.2% | +8.8% |
| NZ Dividend ETF (DIV) | -1.0% | +0.3% | -3.8% | -3.8% | -2.2% |
KEY ANNOUNCEMENTS
Scales Corp (SCL, #40) advises the settlement, announced on the 30th of September 2024, of its recently announced sale of Te Papa and Blynth orchards which is owned by subsidiary Mr Apple New Zealand Limited, to a fund managed by Craigmore Sustainables.
Spark (SPK, #9) announced a board change in the NZX today. In respect of listing rule 2.6 the Board of Directors have determined that director Mr David Havercroft is an Independent Director from today.
Fletcher Building (FBU, #17) announced that its sale of Tradelink (Australian plumbing supplies and distributor) was complete today, sold to Metal Manufactures Pty limited. The sale price of A$170 million includes a cash payment of A$160 million paid on the settlement, with the remaining balance based on achieving separation milestones. The Separation is currently expected to be two years, completed by September 2026.
Vista Group (VGL, #36) announced that it received a letter from Admetus Capital Limited (Potentia) requesting that Board call a special shareholders meeting. The meeting's purpose would be to vote on the removal of two existing directors (VGL Chair of the Board, and its founding global film industry expert), and the appointment of two Potentia nominated directors, Amitesh Chand, an executive of Potentia. Followed by Current Chair of MYOB, DroneShield, and Macquarie Technology Group, Peter James.
Potentia made contact with the Board in June requesting that the Board exercises its power to appoint three directors to the VGL Board. The Board undertook a process in evaluation of the request, with respect to Potentia, and in the best interests of VGL shareholders. Here, a Board meeting with the New Zealand Shareholders association, and VGL's largest institutional shareholders and founding shareholders took place, this represented more than 50% of the company's ordinary shares on issue. As a result of the meeting, the feedback the Board received showed no shareholder support for Potentia's proposal. An offer was made by VGL to enter an appropriate undertaking in the interests of VGL's other shareholders so that the Board could work with Potentia to the benefit of its shareholders. Potentia deemed this unnecessary. There for a further proposal received on the 1st of September for Potentia candidates Amitesh Chand and Andrew Gray to be made directors but this again had insufficient shareholder support.
Synlait Milk (SML) advises that a change of control has occured in regards to its SML010 bonds due to Bright Dairy Holding Limited increasing its shareholding to 65.25%. As a result, SML has a trading halt for the 10 working day period where during this time holders are eligible to redeem their SML010 bonds early. Holders who redeem early will not be able to trade those bonds until they redeemed on the 13th of November. Those holders who do not redeem the bond early will be able to trade from Wednesday the 16th of October, when SML010 trading resumes.
Channel Infrastucture (CHI, #37) announced that it has entered into a conditional project development agreement with Seadra Energy Inc to develop a biorefinery at its Marsden Point site. In July of 2023, CHI announced it entered into an option agreement with Seadra to purchase specific decomissioned assets from the complex for US$33.875 million. The option agreement was due to expire on the 30th of September 2024 (yesterday) and in total has received US$4.7 million in non-refundable option payments. Seadra told CHI that leaving the assets at Marsden Point and utilising them in its current place for a proposed biorefinery is its preferred project option. CHI CEO Rob Buchanan says “Attracting another potential international future fuels project to Marsden Point is further validation of the unique nature of our strategic site. While there can be no guarantee that these projects will ultimately proceed, the fact that we have been able to attract two potential projects of this calibre is testament to the attractiveness of our Marsden Point site for the production of lower-carbon fuels and the inherent value of our land. Should the Marsden Point biorefinery project proceed, it would create value for shareholders through the sale of decommissioned assets and revenue from long-term contracts for the use of our land, and other infrastructure, by the biorefinery. The proposed biorefinery project is just one example of the many and varied opportunities we see to develop Marsden Point as an energy precinct for New Zealand over the long term.”
Vista Group
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NZX50 Industrial Sector
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1 Comments
With term deposit rates plunging in anticipation of a a touted imminent OCR reduction Spark looks as though it is at or near its trough at $3.00 a share. This would give a healthy return of over 9% with the current annual dividend of 27.5 cents per share. Supposedly Spark has a healthy balance sheet according to Morningstar and their fair value estimate of Spark is $4.60 per share. However, there does seem to be a strange reshuffle of the Spark board going on at the moment; what the implications are is anybody's guess.
Manawa had a sharp slump in share price some weeks ago but it was only due to a modest profit downgrade due to the unusually low lake and wind levels so far this year. However, the recent increase in its share price is due to the recent sale of Manawa to Contact Energy in what I would call a fair deal all round. However, the deal is subject to Commerce Commission approval and their decisions are more akin to a lottery than rational consideration.
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