Market commentaries
WELLINGTON: New Zealand shares rose in the final day of the quarter, led higher by bluechip stocks such as Spark New Zealand and Ryman Healthcare.
The S&P/NZX 50 gained 64.66 points or 0.7%, to 9351.06. Within the index, 28 stocks rose, 12 fell and 10 were unchanged. Turnover was $182 million.
The benchmark index rose 4.3% in the quarter, following a 7.5% gain in June. So far this year the NZX 50 is up 11%, outperforming its peers across Asia.
Bluechip stocks led the market higher yesterday in the final session of the September quarter, which typically sees institutional investors adjusting their portfolios.
Ebos Group was the strongest performer in the September quarter, up 25% to $22.46. That included a 0.9% gain yesterday. Ryman Healthcare rose 2.6% to $14 yesterday, and has gained 17% in the quarter. Spark led the market higher, up 3.1% to $4.05 and climbed 8.4% in the quarter.
Westpac Banking Corp gained 2.6% to $30.95 and Australia & New Zealand Banking Group advanced 1.8% to $30.90 after Royal commissioner Kenneth Hayne’s interim report into the Australian banking sector did not make any recommendations and instead argued for stronger enforcement of existing law.
Infratil rose 1.7% to $3.565 after the company raised its earnings guidance on the performance of its Longroad Energy business in the US.
Mercury NZ increased 0.8% to $3.365 after chief executive Fraser Whineray told shareholders the power companies are working to find options for customers struggling with their bills, and that government intervention needs to avoid harming the industry.
Fletcher Building gained 0.8% to $6.54 after government data showed Auckland residential building permits were at an annual record in August.
A2 Milk Co fell 2.5% to $11.26, continuing its decline since CEO Jayne Hrdlicka disclosed a share sale.
Outside the benchmark, Orion Health Group rose 0.9% to $1.08. The software company held its annual meeting yesterday where shareholders voted on whether to approve carving up the company and signing off on a capital return. The final results have not been published but the proxies indicated it would get over the line.
Pyne Gould Corp was unchanged at 33c after indicating it planned to quit the NZX in favour of a listing in its home domicile of Guernsey.
Hallenstein Glassons rose 4.1% to $5.85 after affirming a 58% gain in annual profit and saying sales rose 7.2% in the first two months of trading in the new year.
Foley Family Wines was unchanged at $1.45 after extending its timeframe to complete its purchase of Mt Difficulty Wines.
Cavalier Corp was unchanged at 61c after confirming the sale of its stake in a wool scouring business for $13.5 million. The company’s board will be seeking an increase in the pool for directors’ fees at its upcoming annual meeting.
AFT Pharmaceutical gained 0.9% to $2.22 after saying its Maxigesic painkiller is now licensed in the Russian Federation. It expects sales to start in the 2020 financial year. It also secured new partners in Hong Kong and Taiwan.
The Australian sharemarket closed higher after investors’ worst fears over the banking royal commission’s interim report were unfounded.
The benchmark S&P/ASX200 index was up 26.4 points, or 0.43%, at 6207.6 points yesterday, while the broader All Ordinaries index was 26.2 points, or 0.42%, higher at 6325.5 points.
After four consecutive days of losses, banking stocks bounced back after Treasurer Josh Frydenberg outlined the contents of the report published by commissioner Kenneth Hayne, CommSec chief market analyst Steven Daghlian said.
‘‘They’ve been hit hard since the start of this year as well, but the report didn’t seem to include any specific recommendations as of yet ahead of the final report from the commissioner next year,’’ he told AAP.
The sector, which is dominated by the big four banks, jumped 1.6% within minutes of the documents’ release and kept rising before tapering off late in the day.
Even Westpac, which had been in the red all day after announcing it was setting aside $235 million to compensate customers overcharged for financial services, was up more than 1% on Thursday’s close.
Commonwealth Bank posted the highest gains, up 1.9% to $71.41, while Westpac had the least of the big four, up 1.2% to $27.93.
The gains did not extend to Macquarie Group, however, which fell 1.3% to $126.04 after news its chief executive and his successor will likely to be named ‘‘persons of interest or suspects’’ in a German share market investigation.
Elsewhere, the materials sector closed higher despite benchmark Rio Tinto falling 0.6% to $78.76, while BHP was up 0.4% to $34.63.
The Australian dollar came under pressure against a broadly firmer US currency as widening yield differentials and strains in emerging markets took their toll.
The Aussie was buying US72.18c at 4.30pm AEST, from US72.26c on Thursday.
In companies news, dairy producer a2 Milk Company shares fell to onemonth lows after chief Jayne Hrdlicka sold her entire holdings last week and investment giant BlackRock and Pendal Group became substantial holders this week.
A2 shares were down 2.9% to $10.24.