Strong US Lead Lifts NZX 50; Fisher & Paykel Healthcare Surges 3.24%

On Tuesday, the New Zealand sharemarket experienced a notable rebound, driven by a strong performance in the United States and a global shift in investor sentiment. The benchmark S&P/NZX 50 index climbed 1.52% to 12,877.04 points, with over 32.6 million shares traded, totaling $105.5 million in value.

The rally followed a surge in the U.S. markets, where the S&P 500 rose 1.47% and the Nasdaq Composite gained 1.95% by the close of Monday’s trading session. This momentum spilled over into other regions, with the Australian ASX 200 also rising 1.15% by Tuesday evening.

Salt Funds Management managing director Matt Goodson noted that the rally was broad-based, with the U.S. market leading the charge. He suggested that expectations of potential interest rate cuts in the U.S. following weak employment data last week may have contributed to the positive sentiment. However, Goodson cautioned that while the market is pricing in a September rate cut, this expectation had already been factored in the previous week.

Among the notable performers on the NZX 50, Fisher & Paykel Healthcare saw a significant 3.24% increase, closing at $36.94. The healthcare company, which has had a volatile year, posted strong trading volumes exceeding $10 million. Other key companies also benefited from the rally, with Mainfreight rising 2.38% to $61.50 and KMD Brands climbing 6.38% to 25c.

However, not all stocks fared well. Gentrack Group fell 3.36% to $9.78, continuing a challenging period for the company. Goodson pointed to a decline in investor confidence following missed contract opportunities, with many 'fast-money-growth' investors exiting the stock.

Infratil, which has a strong presence in the U.S. through its investment in Longroad Energy, gained 4.16% to $11.90. Goodson attributed the move to a bullish note from Morgan Stanley on the data centre sector in Australasia.

New Zealand Rural Land Company also saw a 4.3% increase to 97c after announcing a capital review, signaling a potential shift in its strategic direction.

Goodson noted that the market has been relatively quiet ahead of the upcoming results season, which is expected to begin in the third week of August. He emphasized that investors are likely to be looking for improved outlooks from companies, particularly in sectors less affected by economic cycles.

Analysts from Craigs Investment Partners highlighted that the cyclical recovery is underway, citing the impact of New Zealand’s Reserve Bank rate cuts, which began in July 2024. With over half of all mortgages refinancing at lower rates by mid-2025, the analysts expect further improvements in consumption and economic activity.