Investors cheered by Pacific Edge news

An optimistic update from cancer diagnostics company Pacific Edge gave its shares a boost after a trading halt this morning interrupted investor gloom over bad news from the US.
In a statement to the NZX, Pacific Edge said it had been notified its Triage Plus product could receive a price of US$1018

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1News

10 hours ago

• 1News

What is going on with Briscoes shares?

Briscoes shares have had a boost in recent days, ahead of the company moving into the top 50 stocks on the NZX share market tomorrow. Falling share prices pushed The Warehouse out of the NZX50, and Briscoes will take its place. That means that passive managed funds that benchmark their funds to the NZX50 will snap up stocks in the company too. Its share price has lifted from less than $5 at the start of the month to $6.19 on Thursday. Greg Smith, head of retail at Devon Funds, said there had been a lot of pre-buying ahead of Briscoes moving up on Monday morning. He said that meant the bump in share price was unlikely to be so significant. ADVERTISEMENT "Going into the 50 means it is a lot more relevant to institutional managers although with Rod Duke owning nearly 80% of the stock, getting liquidity will be an issue." Greg Bunkall, data director at Morningstar, said the number of passive funds benchmarked to the NZX50 would not be large. "Maybe 10 or so share classes, both traditional managed funds and ETFs. "There may also be some of the ESG tilted options, which, depending on the screen might be impacted - then there is also the multi asset funds which have the index fund as a part of the overall portfolio." 'Self-cleansing mechanism' Dean Anderson, founder of Kernel KiwiSaver, said it was relatively unusual for stocks to move in and out of the top 50. "Every quarter, major benchmarks like the S&P/NZX 50 undergo a rebalance, testing each company's eligibility for the index and where underperforming companies can be dropped and stronger ones added. ADVERTISEMENT "This self-cleansing mechanism ensures indices stay relevant-poor performers are replaced by those that have grown in value, often overtaking the bottom-ranked company in the index. "In a small market like New Zealand, though, such changes are rare, often one or two changes in a year, making them all the more noteworthy when they happen, with the last change to the S&P/NZX 50 index rebalance occurred in December 2023." He said the Briscoes share price had already lifted 28% since it was announced it was going into the top 50. Some investors had sold shares in The Warehouse. "Globally, this isn't unusual. Studies show that stocks added to major indices like the S&P 500 often see short-term price spikes of 3% to 8% in the days leading up to inclusion, driven by speculative buying and index fund rebalancing. "However, the scale in these spikes is falling and these gains frequently fade within weeks as the initial hype subsides - which can leave some speculative investors out of pocket." He said some active manager might be trying to game the rebalance by betting on short term movements but the risks could outweigh the rewards. Sam Stubbs, founder of Simplicity KiwiSaver, said his funds were benchmarked against the top 30. He said beyond the top 30, it could be hard to buy and sell shares. He said Briscoes' presence in the index was likely to be weighted so that only 20% of the company's value was reflected because of Duke's significant holding.

Scoop

5 days ago

• Scoop

NZX Receives Positive Report Card

NZX continues to receive a positive regulatory report card, with a review by the Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – finding it has met its obligations while pursuing further enhancements. The annual NZX Market Operator Obligations Review, released today, assesses how well NZX is meeting the requirements for its market operator licence. The report found NZX met all its obligations during the review period from 1 January to 31 December 2024. FMA Director of Markets, Investors, and Reporting, John Horner, said: 'NZX continues to deliver a critical service to New Zealand. 'This report shows businesses and investors can be confident NZX continues to operate in accordance with its market operator licence and is meeting its obligations.' In particular, the review found: Governance arrangements continue to be appropriate and support NZX's ability to comply with its licensed market operator obligations. NZX and NZ RegCo are operating well-developed frameworks and processes, and continually working to further enhance operational effectiveness and resilience. Continued demonstration of NZ RegCo's operational independence, while maintaining an appropriate and effective working relationship with NZX. Maturity and investment in technology and risk management resources, with further enhancement in the review period providing stronger capability, resilience and security. Significant milestones reached in NZX projects designed to further grow NZX's markets, improve investment choices and drive liquidity on the markets. The report has made no adverse findings and two recommendations. The first recommendation is to encourage NZX to continue its plans to explore and test the resiliency and dependencies of participants, including their business continuity plans, and reduce the risks posed by reliance on critical service providers within the ecosystem, where practicable and reasonable. NZX has further enhanced the group's crisis management framework, and successfully completed another crisis simulation event. The FMA recommends NZX continues to assess system recovery arrangements to increase its understanding and test whether further refinements are required for more extreme but plausible events.

Otago Daily Times

6 days ago

• Otago Daily Times

Pacific Edge chairman staying on

Chris Gallaher. PHOTO: GREGOR RICHARDSON Pacific Edge chairman Chris Gallaher has delayed his retirement for the second time to ensure stability and continuity on the cancer diagnostics company's board. In March last year, the company announced Mr Gallaher's intention to retire following the appointment of a successor and a structured handover at the end of the year. But in September, the board asked him to remain as chairman into 2025 to provide stability and confidence amid the continued uncertainty over the Medicare coverage status for the company's Cxbladder tests and the ongoing process to recruit his successor. Yesterday, Pacific Edge advised Mr Gallaher had accepted an invitation by the company's directors to seek re-election to the board at its annual shareholders meeting in Auckland on August 6. The statement said the invitation was extended because they believed shareholders' best interests were served with the continuity and stability of Mr Gallaher's leadership while the company continued to navigate the loss of Medicare coverage for Cxbladder products. Mr Gallaher, who joined the board in 2016, was due to retire by rotation and independent directors Sarah Park and Tony Barclay, who were also due to retire by rotation, had indicated they would stand for re-election. Mr Gallaher said the inclusion of Cxbladder Triage in the American Urological Association's new microhematuria guideline had allowed Pacific Edge to view the local coverage determination that ended Medicare coverage of its test through a different lens. As it moved through the process to seek re-coverage, he was happy to continue. — APL