Market commentaries

WELLINGTON: New Zealand shares followed Wall Street higher as global events remain top of mind for investors, underpinning growth stock a2 Milk Co and bluechip firms such as Spark New Zealand and Fletcher Building.

The S&P/NZX 50 index increased 11.45 points, or 0.1%, to 8673.82. Within the index, 16 stocks gained, 25 fell and nine were unchanged. Turnover was $136.3 million.

Stocks across Asia largely followed Wall Street’s cues as the outlook for US interest rates and trade tensions between the US and China overshadowed domestic news. Speeches by Federal Reserve vicechairman Richard Clarida and chairman Jerome Powell, and a meeting between US President Donald Trump and his Chinese counterpart Xi Jinping on the sidelines of the G20 leaders’ meeting were keenly awaited.

‘‘There’s no shortage of big stories and key events overseas — the US is highly important as always,’’ Mark Lister, head of private wealth research at Craigs Investment Partners, said.

A2 led the market higher, up 2% to $10.40 on lighter volumes than usual, while Ryman Healthcare rose 1.6% to $11.21 on average volumes.

Fisher & Paykel Healthcare extended its gain, up 1.1% to $13.45.

Trade Me was the most traded stock as 3.4 million shares changed hands, compared with its 90day average of 450,000. The price was unchanged at $6, below the $6.40 price British private equity firm Apax Partners has put forward as an indicative offer.

Fletcher Building rose 0.6% to $4.69 on volumes of 3.2 million as it recovers from a 14year low, while Spark New Zealand gained 0.9% to $4.12 on volumes of 3 million.

Precinct Properties New Zealand was unchanged at $1.42 on volumes of 1.4 million, twice its average.

Sky Network Television dropped 7.1% to $2.23, the biggest decline on the day in light trading. The payTV operator gave up Monday’s gain when it unveiled incoming CEO Martin Stewart.

Synlait Milk fell 2.3% to $8.43 on very small volumes before today’s annual meeting.

Arvida Group rose 0.8% to $1.31 after reporting a 45% increase in firsthalf underlying earnings.

The retirement village operator said the result was boosted by a strong occupancy rate in its village homes and buoyed by good resale margins.

Fonterra Shareholders’ Fund units fell 0.2% to $4.66 after Fonterra’s head of consumer and foodservice Lukas Parivicini announced his departure from January.

A The Australian sharemarket has closed higher after a positive afternoon of trading, buoyed by the financial sector and supported by commodityrelated stocks.

The benchmark S&P/ASX200 index was up 56.7 points, or 1%, at 5728.3 yesterday, while the broader All Ordinaries rose 0.93%.

The surge in the indices reflected buyers repositioning their investments ahead of the G20 summit later this week where an update on the trade tariffs between the US and China was expected, CMC Markets chief strategist Michael McCarthy said.

‘‘Although expectations at this stage are very low, the riskreward element, given the way shares have fallen over the course of the month, means that for many investors the lower risk approach to the meeting is to buy back into some shares,’’ he said.

‘‘Either taking back short positions or increasing portfolio exposures over these lower levels.’’

The banking sector closed more than 1.3% higher. Energy stocks rose after oil prices recovered overnight, with Santos and Beach Energy both more than 2% higher, while Caltex and Oil Search rose 1.7% and 0.8% respectively.

The material sector also gained despite lower iron ore prices, with BHP shares gaining 1.5% to $30.87 after announcing it had identified a potential new iron oxide, copper and gold mineralised system near its Olympic Dam operations in South Australia

The tech sector was the biggest climber, rising more than 3% with Afterpay jumping 8.6% to $12.97, Technology One rising 6.8%, while Wisetech and Computershare both rose more than 3%.

The Australian dollar was hovering at near oneweek lows as markets were nervous before the crucial trade talks between the leaders of the United States and China.

The Aussie was buying US72.34c at 1630 AEDT, down from US72.47c on Monday.

The All Ordinaries closed up 53.2 points, or 0.93%, at 5802.8. At 1630 AEDT, the SPI200 futures index was up 56 points, or 0.99%, at 5734. — BusinessDesk/AAP