Sharemarket drops 1.75% as Fisher & Paykel forecast weaker

The S&P/NZX 50 Index closed down 1.75% or 220.074 points, falling to 12,362.26, with 42,962,847 shares changing hands to the value of $154.15 million.

The S&P/NZX 20 index closed at 7,300.46, down 1.86%, while the S&P/NZX 10 index closed at 1,857.50, down 2.47%.

There were 66 gainers on the main board and 73 decliners.

Fisher & Paykel Healthcare, NZ’s biggest by market capitalisation, on Wednesday reported a 43% lift in its annual net profit to $377.2m, while turnover was a record $2.02 billion (up 14%).

However, looking forward, the business expects operating revenue to be in a range of about $2.15b to $2.25b, and for its net profit to be about $390m to $440m.

Its share price fell 4.45% to $35, down $1.63, with 584,880 shares trading hands to the value of $20,673,981.50.

Infratil also reported results, recording a net loss of $261.3m from a $761m net profit in FY2024. A dividend of 13.25 cents per share (cps) was declared for the second half, taking the full-year payout to 25cps from FY2024’s 20cps.

Shares in Infratil fell 5.94% to $10.60, down 67c, with 1,820,649 shares trading hands to the value of $19,314,237.81.

Below expectations

Devon Funds Management head of retail Greg Smith said although both were strong results, there was potential for a positive surprise, which didn’t eventuate.

“I think with Fisher & Paykel, there was expectation that there would have been low double-digit growth percentage, so that guidance was a bit softer than expected,” Smith said.

“It was a similar story for Infratil, with a bit of disappointment around or guidance for CDC’s data centres coming in a bit on the light side.”

Meanwhile, Rakon and Stride Property’s results also saw share price reactions.

Shares in Rakon rose 7.02% to $0.61, up 4c, with 314,146 shares trading hands to the value of $188,656.61.

Shares in Stride Property fell 0.85% to $1.16, down 1c, with 1,361,508 shares trading hands to the value of $1,579,737.14.

“Solid results, but both missed on guidance and both had rallies into their results," Smith said.

“In terms of international markets, we were marching to a slightly different beat today and more domestically focused on earnings and what the RBNZ was going to do,” he added.

The Warehouse Group also finally announced its new permanent chief executive after nearly a year of waiting, choosing an internal appointment in its chief financial officer, Mark Stirton.

Shares in The Warehouse Group fell 4.40% to $0.87, down 4c, with 22,416 shares trading hands to the value of $19,962.80.

Wall Street jump

Wall Street stocks jumped Tuesday after US President Donald Trump pushed back tariffs on Europe, while US Treasury bond yields retreated following last week’s surge.

Trump on Monday said he would pause his threatened 50% tariffs on the European Union until July 9 to allow for talks, reversing an escalation that upset markets on Friday.

Analysts also cited a surprisingly big improvement in US consumer confidence and a pullback in Treasury yields, with the 30-year bond falling below 5% following reports that Japan will temper its long-term bond issuance.

The Dow Jones Industrial Average finished up 1.8% at 42,343.65.

The broad-based S&P 500 gained 2.1% to 5,921.54, while the tech-rich Nasdaq Composite Index advanced 2.5% to 19,199.16.

– Additional reporting by AFP.