Market commentaries
WELLINGTON: New Zealand shares rose for a third day as investors around Asia remained optimistic that trade tensions between China and the US will ease, removing a risk to global growth.
The S&P/NZX 50 index increased 54.81 points, or 0.6%, to 8793.17. Within the index, 28 stocks gained, 17 fell, and five were unchanged. Turnover was $150.6 million.
Stocks across Asia rallied for another day on growing optimism that United States President Donald Trump and his Chinese counterpart Xi Jinping would overcome their trade dispute, which threatens to weigh on global growth. UK Prime Minister Theresa May’s successful vote to keep the leadership also supported investor sentiment. Australia’s S&P/ASX 200 index was up 0.3% in afternoon trading, while Hong Kong’s Hang Seng gained 1.3%.
‘‘We’ve seen a lot of uneasiness overnight in regard to Theresa May — she got the vote of confidence, if you can say that,’’ Peter McIntyre, an investment adviser at Craigs Investment Partners, said.
‘‘Trade tensions eased and it’s given the market some relief and there’s been a sea of green across Asia today.’’
Fletcher Building led the market higher, up 4.5% to $4.91, a threeweek high, on slightly busier volumes than usual of 1.7 million. A notice to the NZX yesterday showed Australian fund manager Perpetual increased its stake in the building company to 11%. The stock is also coming off a 14year low in November, and an announcement on the sale of the Formica international business is expected in coming weeks.
Air New Zealand rose 1.3% to $3.02 after reaching an agreement with workers who threatened to strike in the runup to Christmas. The industrial action would have affected 120,000 travellers. Auckland International Airport rose 1.7% to $7.10.
Spark New Zealand was the most active stock on a volume of 3.4 million, slightly busier than usual. It fell 0.5% to $4.31.
Trade Me slipped 0.6% to $6.33 on a volume of 2.3 million shares. The online marketplace said a potential suitor dropped out of a bidding war after it put UK private equity firm Apax Partners in the box seat yesterday, agreeing to a planned scheme of arrangement at $6.45 a share.
Mr McIntyre said the lower threshold for Apax to take over Trade Me meant it looked likely it would delist from the local stock market. NZX was unchanged at $1.
Restaurant Brands slipped 0.2% to $8.45 on 1.2 million shares, more than four times its average volume. The fastfood retailer is under a partial takeover offer by Mexico’s Finaccess Capital. Third quarter sales released yesterday were slightly below expectations, Mr McIntrye said.
Meridian Energy rose 1.5% on heavier trading of 1.9 million. Chairman Chris Moller announced he would retire from the board at next year’s annual meeting and be replaced by recent board recruit Mark Verbiest.
Of other companies with volumes of one million shares or more, Sky Network Television was unchanged at $2.06, a2 Milk rose 2.2% to $11.13 and Infratil gained 2% to $3.62.
Contact Energy fell 2% to $5.80 in light trading, posting the biggest decline on the NZX 50.
Banking and mining stocks lifted the Australian share market higher, but gains were limited by a slump from the telco sector after the competition watchdog raised concerns over TPG’s planned merger with Vodafone Australia.
The benchmark S&P/ASX200 index was up 8.1 points, or 0.14%, at 5661.6 yesterday, and the broader All Ordinaries also rose 0.14%.
Sentiment was boosted by news China bought more than 1.5 million tonnes of US soybeans, in the first major US soybean purchases in more than six months.
This combined with China moving to cut tariffs on automobiles encouraged investors to take a riskon approach to trading, Bell Direct equities analyst Julia Lee said.
‘‘The market’s mostly positive and certainly it’s been the growth areas of the market that have been gaining ground and we’re seeing the same around the region as well,’’ she said.
Major miners shouldered much of the heavy lifting driving the Australian market upwards.
BHP climbed 1.9% to $32.81 and Rio Tinto was up 2.2% to $75.69 on higher iron ore prices.
South32 and Fortescue rose 2.2% and 1.5% respectively.
The financials were buoyant with ANZ the best of the big four lenders, gaining 1.2% to $25.49, while Westpac was the only one to lose ground, driven by Wednesday’s first strike from shareholders against executive pay. It fell 0.1% to $25.44.
The telco sector was the heaviest drag on the indices as the the ACCC threw doubt on TPG and Vodafone Australia’s proposed merger into a single $15 billion company, fearing the move could mean higher mobile prices for consumers.
TPG shares were 16.7% lower at $6.45, while Hutchison Telecommunications — which owns a 50% stake in Vodafone Australia — was 21.4% lower at 11c.
Benchmark Telstra lost 3.3% to $2.93.
The Australian dollar was buying US72.29c at 1630 AEDT yesterday, up from US72.04c on Wednesday. — BusinessDesk/AAP
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