Market commentaries
WELLINGTON: New Zealand shares gained in light trading yesterday as Fletcher Building’s discounted rights issue and upcoming MSCI New Zealand index review weighed on investors’ minds.
The S&P/NZX 50 index rose 24.97 points to 8369.49. Within the index, 21 stocks gained, 22 fell, and seven were unchanged. Turnover was $85 million.
Fletcher Building remained in a trading halt at $6.27 as investors continued to digest Tuesday’s underwritten $750 million rights issue at a 23% discount. After the close of trading, the company said institutional investors took up 98% of their entitlements, raising gross proceeds of $500 million. The institutional bookbuild opened yesterday and runs until the close of business today. Trading resumes tomorrow.
The capital raising is part of a $1.25 billion refinancing plan shoring up the construction company’s balance sheet. FBU had drawn $280 million from its banking facility in the first three months of this year alone.
Fletcher also announced plans to sell Formica and its steel roofing tiles business, which Morningstar Research estimated were worth about $700 million.
Fletcher’s rights issue also raised uncertainties about the outcome for the MSCI index review, which Nikko Asset Management senior portfolio manager James Lindsay said was also weighing on activity.
Despite that uncertainty, New Zealand stocks followed Asia higher, led by Trade Me, up 2.3% to $4.39. Metlifecare gained 2.3% to $5.83 and Pushpay Holdings rose 1.8% to $3.98.
Kathmandu Holdings fell 0.8% to $2.54. Comvita posted the biggest fall on the index, losing 4.1% to $6.60.
Fonterra Shareholders’ Fund units fell 0.2% to $5.74 after dairy prices rose at the latest Global Dairy Trade auction. Rival processor Synlait Milk rose 0.2% to $9.58, and milk marketer A2 Milk Co gained 1.3% $12.35.
Sky Network Television fell 2.5% to $2.32, NZX dropped 1.8% to $1.08 and Scales Corp declined 2.2% to $4.40.
Auckland International Airport rose 1.2% to $6.29, Meridian Energy was unchanged at $2.87 and Spark New Zealand gained 0.3% to $3.435.
A The Australian sharemarket yesterday notched a fourth straight session of gains, driven by strength in the energy, mining and retail sectors.
The benchmark S&P/ASX200 index rose 0.3% to 5861.4 points while the broader All Ordinaries was up 0.4% at 5956.3.
A rise in oil and iron ore prices helped lift the miners and oil and gas producers.
Oil Search gained 16c to $7.70, Origin Energy added 14c to $9.49 and Woodside Petroleum rose 33c to $30.72.
BHP Billiton gained 14c to $30.07, Fortescue Metals added 4c to $4.55 and Rio Tinto rose 87c to $78.96.
The best performing retailers included Harvey Norman (up 9c to $3.44), Kathmandu (up 10c to $2.37) and JB HiFi (up 57c to $25.94). Wealth manager AMP fell 10c, or 2.2%, to $4.45, continuing its decline since admitting to the financial services royal commission it had lied to or misled the corporate regulator.
All four major banks also lost ground
National turnover was 3.3 billion securities traded, worth $A4.9 billion. — BusinessDesk/AAP