Market commentaries
AUCKLAND: New Zealand shares rose yesterday, led by a2 Milk Co, which calmed nervous investors with a strong firstquarter update. Synlait Milk followed suit, albeit on much lighter volumes.
The S&P/NZX 50 index climbed 108.34 points, or 1.2%, to 8911.79. Within the index, 37 stocks gained, seven fell and six were unchanged. Turnover was $106.8 million.
A2 jumped 9.2% to $10.59 on average volumes, having touched an eightmonth low last week. The milk marketer said it yesterday increased its Chinese market share for infant formula to 5.6% in the September quarter from 5.1% just three months earlier, and affirmed its outlook for revenue growth. Synlait, which supplies a2, rose 7.7% to $9.85 on less than half its normal volume.
‘‘Across a number of measures it looked pretty sound and good,’’ said James Lindsay, a senior portfolio manager at Nikko Asset Management. A2 and Synlait had high index weightings and contributed most of yesterday’s gain in the NZX 50, he said.
However, gains were widespread with stock markets across Asia following Wall Street higher.
Mercury NZ increased 0.8% to $3.34 on heavier trading than usual. The electricity generatorretailer operational update for the September quarter showed strong hydro generation from a record period a year earlier. Retail customers slipped to 386,000. Contact Energy rose 2% to $5.73 and Auckland International Airport increased 1.5% to $7.
Genesis Energy rose 0.6% to $2.46 in quiet trading after announcing a partnership with Tilt Renewables to develop a wind farm in Taranaki. Tilt, which is under a takeover offer from Infratil, was unchanged at $2.31.
Z Energy fell 2.5% to $6.62 on a volume of 2.9 million shares, the busiest stock yesterday. The transport fuels firm reported lower retail petrol sales in the September quarter.
Port of Tauranga declined 1.8% to $4.94 in busierthan normal trading. It forecast profit to rise by as much as 8.1% in the June 2019 year on increased cargo volumes.
Among other active stocks, Sky Network Television was unchanged at $2.20 on volumes of 1.9 million shares ahead of today’s annual meeting. Spark New Zealand increased 0.3% to $3.90; Meridian Energy slipped 0.6% to $3.11 on a volume of 1.2 million shares.
Outside the benchmark index, Steel & Tube fell 2% to $1.46 after New Zealand Steel bought a blocking stake in the company, paying $1.75 a share. Fletcher Building had sought to buy its smaller rival but was rebuffed twice and walked away. NZ Steel’s parent, BlueScope Steel said it has no plans for a takeover.
AWF Madison fell 6.9% to $1.76 after saying the collapse of three construction firms dented firsthalf earnings.
Pacific Edge extended its recent run, up 12% to 43.5c on more than six times the normal volume. The stock is at a 12month high. NZAXlisted TruScreen rose 2.1% to 24c. Both cancer test makers have reported sales successes in the past week.
The Australian sharemarket closed more than 1% higher yesterday for the first time in four months, buoyed by banking stocks after a surge on Wall Street overnight.
The benchmark S&P/ASX200 index was up 69.2 points, or 1.18%, at 5939.1 points, while the broader All Ordinaries was up 69.3 points, or 1.16%, at 6047.1.
Wall Street provided a legup for the Australian indices following major financial and healthcare companies in the US reporting betterthanexpected profits for the third quarter on Tuesday, Bell Direct equities analyst Julia Lee said.
‘‘This earnings season we’re expecting to see growth of 19.2%, so that’s the sixth time out of seven quarters we would have seen doubledigit growth coming out of the US,’’ she said. — BusinessDesk/ AAP