“S&P Ratings has put Spark on a negative watch and if it goes below A minus that would increase the cost of new debt. Spark is a business that’s been struggling and it has targeted significant cost cuts,” he said.
Global marketer a2 Milk was up a further 27c or 2.86% to $9.72, its highest since February 2021 but still some distance from its July 2020 peak of $20.84. The infant milk formula supplier is benefiting from China’s moves to support families having children.
Merchant services company Smartpay surged 22c or 34.92% to 85c after confirming two conditional takeover bids – one from Australian competitor Tyro Payments at $1 a share and the other from an undisclosed international party.
Smartpay, which operates Eftpos machines, has granted the bidders due diligence, but it will also be reviewing Tyro, given that the majority of the offer involves issuing Tyro shares, plus a cash payment.
Goodson said Smartpay has significant synergies with Tyro, and a deal potentially makes sense.
In the United States, the Dow Jones Industrial Average bounced back 1.65% to 41,488.19 points at the weekend (NZ time), while the S&P 500 increased 2.13% to 5638.94 and Nasdaq Composite rose 2.61% to 17,754.09.
Back home, Meridian Energy was down 13c or 2.37% to $5.35 after a softer operating report. Meridian said national hydro storage declined from 91% to 76% of the historical average in the month to March 10, with the South Island at 72% and North Island at 103%.
National electricity demand in February was 5.2% lower than the same month last year, and Meridian’s retail sales volumes decreased by 1.9%.
Elsewhere in the energy sector, Contact decreased 19c or 2.16% to $8.60; Mercury was down 7c to $5.62; Genesis shed 5c or 2.2% to $2.22; and Manawa decreased 9c or 1.84% to $4.80.
Auckland International Airport declined 17c or 2.1% to $7.93 after reporting a 4% decline in total passengers in February. International passengers totalled 844,387, down 3.2%, and domestic 691,255, down 5% – representing 93% of pre-Covid activity.
Ebos Group shed 55c to $37.10 after telling the market it was not considering buying Real Pet Food as speculated in the Australian media.
Freightways eased 24c or 2.17% to $10.80; Serko was down 13c or 3.32% to $3.79; Westpac decreased 64c or 1.91% to $32.83; Sky TV shed 7c or 2.81% to $2.42; Port of Tauranga declined 14c or 2.11% to $6.48; and SkyCity was down 3c or 2.38% to $1.23.
Retirement village operator Summerset was up 18c to $11.86, and Ryman Healthcare was down 11c or 3.78% to $2.80 after only 42% of shareholders took up the retail offer in its $1 billion capital raise.
The property sector was weaker. Precinct was down 3c or 2.58% to $1.135; Vital Healthcare Trust shed 4c or 2.2% to $1.78; Kiwi decreased 2c or 2.22% to 88c; and Property for Industry declined 4c or 1.87% to $2.10.
Fletcher Building increased 7c or 2.18% to $3.28; NZME gained 3c or 2.59% to $1.19; Blackpearl Group rose 5c or 6.67% to 80c; and Colonial Motor was up 20c or 2.99% to $6.90.
Infratil added 22c or 2.17% to $10.38 after telling shareholders in its newsletter that the performance of CDC data centres and One NZ (formerly Vodafone) was on track.
Goodson said that given Spark’s issues, Infratil’s reassurance on One NZ was a relief for investors.
New Zealand King Salmon Investments declined 3c or 11.54% to 23c after reporting higher than expected sea farm mortality, coupled with lower than anticipated growth rates.
The latest mortality rate, significantly lower than in late 2022/early 23, will impact the harvest and profitability in the 2026 financial year, with an estimated 5900-6300 metric tonnes and operating earnings (ebitda) of $15m-$24m. The guidance of $26m-$30m for the 2025 financial year will not be affected.
