More than 20 public companies are expected to report their financial results over the next 10 days. Photo: RNZ / Kymberlee Gomes
A mixed bag of more than 20 public companies are expected to report their financial results over the next 10 days, with investors keen to see any signs of an improving economy.
The balance of the reporting season with 30 September balance dates included companies with exposure to the domestic economy, such as property investors, aged care and retirement villages, alongside a few with a global focus including tech sector firms, Fisher & Paykel Healthcare, Serko and Rakon.
Milford Asset Management investment Jeremy Hutton said investors would be looking for some signs of the improving economy, particularly for companies with exposure to the retail sector and housing market, such as Ryman Healthcare.
"I think you're seeing some pretty good evidence that there is a cyclical recovery underway, which has been much needed after two or three very hard years in New Zealand," Hutton said.
While the Reserve Bank's official cash rate had been falling in recent months, Hutton said it was important for investors to see how the change was flowing into bottom-line results.
"Seeing it in the hard data is really important, and seeing a little bit of, hopefully some growth in jobs and growth outlooks into 2026, would be really important."
Hutton said an improvement in the volume of house sales could translate into a better outlook for retirement village operators, with more would-be residents willing to sell-up and move into a village.
A report by brokerage firm Forsyth Barr expects that fewer than half of the companies set to report would outperform the rest, including those with exposure to global markets, as well as domestic firms Oceania Healthcare, Stride Property and Tower Insurance.
"In contrast to last year, we expect a solid reporting season from the property sector," the firm said.
"Portfolio occupancy and comments on tenant demand will be of interest given the emerging economic green shoots with retail the likely early cycle mover."
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