Here are the key changes to know about in the New Zealand equity market; Vulcan Steel, The Warehouse, and Manawa Energy all rise, but swamped by declines led by a2Milk, Freightways, and Kathmandu among others

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 INDEX IS DOING
To open the trading week, the NZX50 index posted a fall of -0.7%, contributing to a cumulative monthly loss of -1.2%. On a year-on-year basis, however, the index has delivered a robust gain of +14.4%.

THE MAIN GAINERS
In today’s equity market, a total of 38 stocks closed in positive territory. Leading the gainers was Vulcan Steel (VSL, #29), which recorded an impressive intraday gain of +4.2%. Despite having faced an -8.6% decline over the past month, Vulcan Steel’s share price has rallied by +12.7% over the last six-month period.

Following closely, The Warehouse Group (WHS, #48) experienced a 2.9% uplift, marking a strong performance for the day. Manawa Energy (MNW, #22) also advanced, posting a 2.6% increase that pushed its monthly gain to 2.3%. On a year-on-year basis, Manawa Energy has appreciated by 22%, showcasing solid long-term performance.

Rounding out today’s notable gainers, NZX Limited (NZX, #41) saw a 1.4% rise, bringing its impressive year-on-year growth to 47.1%.

THE MAIN DECLINERS
The equity market saw a total of 46 decliners, led by a2 Milk (ATM, #10), which suffered a sharp drop of -4.8%. a2 Milk's share price has faced significant downward pressure, declining 22.6% over the past month, although it still maintains a substantial year-on-year gain of +37%.

Freightways (FRW, #20) fell by -3.1%, yet remains up a robust 30% year-on-year, highlighting its strong annual performance. Kathmandu Brands (KMD, #50) continued its decline, losing another 2.3% and deepening its year-on-year loss to 49.4%. Lastly, Serko (SKO, #42) recorded a 2% decrease, bringing its year-on-year decline to 12.8%.

SMARTSHARES EFTs
 

KEY ANNOUNCEMENTS
Meridian Energy has provided financial assistance for its FY25 Long-Term Incentive (LTI) Scheme, aimed at attracting and retaining key senior employees while aligning their interests with shareholders. Under the scheme, eligible participants were issued rights to acquire ordinary shares, which include dividends accumulated over a three-year performance period, subject to specific vesting conditions. The company purchased 1,000,000+ shares on-market at an average price ranging from $5.8479 to $5.9374 per share, totalling $5.92 million, including brokerage. These shares will be held as treasury stock and transferred if conditions are met.

Fonterra Co-operative Group has raised its midpoint forecast for the 2024/25 Farmgate Milk Price from $9.00 to $9.50 per kgMS. The forecast range has also been narrowed from $8.25 - $9.75 per kgMS to $9.00 - $10.00 per kgMS, as more of the FY25 sales book has been contracted. CEO Miles Hurrell attributed the increase to strong demand for key commodity products, particularly from China, Africa, the Middle East, and Southeast Asia. He emphasised the importance of monitoring supply and demand dynamics and leveraging Fonterra’s scale to maximize returns.

Fonterra Co-operative also announced plans to proceed with the sale process for its global Consumer business, along with Fonterra Oceania and Fonterra Sri Lanka. CEO Miles Hurrell stated that after a detailed assessment since May 2024, the divestment aligns with Fonterra’s revised strategy to focus on its Ingredients and Foodservice sectors. The Co-op has seen strong buyer interest and will explore both a trade sale and IPO as divestment options, with advisors managing the process. A final decision, subject to a shareholder vote, will prioritise long-term value, with updates expected in the coming months.

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