Shane Solly: Harbour Asset Management spokesperson on the financial results coming through this week

Financial results are coming in thick and fast.

a2 Milk is reporting a 21 percent rise in profit - alongside announcing it bought the Yashili plant in Pokeno.

It's also sold its majority stake in the Mataura Valley plant in Gore - to Open Country Dairy.

Contact Energy's profit is up 13-percent, after a surge in geothermal generation, and Freightways' profit is up 12.9 percent.

Harbour Asset Management's Shane Solly unpacks the mood of the markets.

LISTEN ABOVE

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Shane Sally Harbor Asset Management with US. Now.

Speaker 2 (00:02):
Hey Shane, Hello Heather.

Speaker 1 (00:03):
All right, so we've got a big week obviously for
the New Zealand company profit results A two contact freightways.
What did the market make of them?

Speaker 2 (00:11):
Yeah, so you're bang on the thirteen companies reporting profits
this week, and we've also got five annual Shield of
meetings kicked off today A two A profit result slightly
against expectations, slightly higher, But the big news was they've
announced the acquisition of your Schill's Poco a dairy processing
plant for two hundred and eighty two Mel. They're selling
Matari Valley milk to Open Country for one hundred mil.

(00:31):
They're losing about one hundred and thirty mil on that deal,
but they have actually announced good high single digit revenue
growth for the next year, and they've also talked about
returning three hundred million this special dividend once they've done
the plant transactions. Stock prices up two point six percent
to eight ninety five contact. Good, solid result in line
with market expectations. Again, financed year twenty six guidance top

(00:55):
of the market range, so that's positive. Share price was
up about one percent over one point three percent nine
oh five freightways result in line with market expectations. Management
was saying, hey, it's been pretty tough challenging out there,
but we continue to see this improving volume of the
last six months. They think that's going to continue. The
momentum is going to continue. In the financial year twenty

(01:16):
six the sheep price of freightway ship rows up one
point six percent to eleven seventy four over the overall,
pretty good start. New Zealand Shire Market app zero point
six percent d by Infanto A two in contact.

Speaker 1 (01:28):
Yeah, and what else are you looking for this week?
What are you interested in?

Speaker 2 (01:31):
Yeah, tomorrow we've got mercury. The other another the electricity
generators INFANTWOS that comes out with an your shield A
meeting Wednesday Fletcher Building in Spark. Those two will be
very closely watched. Both have had a few issues. Thursday
up on the Airport Fishing and Populi Alkia Heartland Scaler
up sky City. So pretty tiring day on Thursday, and
then Friday we get New Zealand stopper Shanees insidex in

(01:52):
sky TV. Is a pretty rapid week of results.

Speaker 1 (01:56):
Now obviously another big thing is happening this week, which
is the Reserve Bank meeting on the ocyard. Do we
get some some interesting data points out today?

Speaker 2 (02:03):
Yeah, it was interesting different conflicting data points today here
that First up, we had the NZ Business Zone Performance
of Services and Index for July. It was up slightly
to forty eight point nine, up versus DUNE forty seven
point six. Good. That means things are less bad because
of reading below fifty. Still means the services part of
their climban is shrinking. Right, We're still contracting, so less bad,

(02:25):
but still bad. Secondly, we had the Reserve Bank and
ze On. They've come up with a new series. It's
a business Expectations so they and it showed inflation expectations
across businesses up slightly on the last month, unemployment rate
expectations down slightly, back on inflation businesses that talk about
two point six four percent inflation expectations for the next
two years. That's within the rbns IS target bands so

(02:48):
they can cut. Finally, the NZI Shadow Board, this is
the shadow of abn Z board. They have voted on
a zero point twenty five percent cut to three percent
on Wednesday. But even within the board there was a
bit of there's two of the board numbers said no
change five sid point two five percent and one said
a half a percent. The markets expecting twenty five basis

(03:10):
points on Wednesday, so it'll be a bit of a
surprise if they don't get at quarter of a percent cut.

Speaker 1 (03:15):
Absolutely, Shane, as always, thank you so much. Talking to
you Yain next week, Shane Sally Harbor Asset Management.

Speaker 2 (03:19):
For more from Hither duplessy Alan Drive, listen live to
News Talk said B from four pm weekdays, or follow
the podcast on iHeartRadio.