Market commentaries

AUCKLAND: New Zealand shares gained yesterday, supported by growing optimism that the United States and China can reach a trade deal.

A2 Milk benefited from the lift in sentiment.

The S&P/NZX 50 index increased 126.07 points, or 1.4%, to 8947.22. Within the index, 35 stocks gained, seven fell and eight were unchanged. Turnover was $91 million.

Asian markets pushed higher after the US and China extended trade talks in Beijing for an unscheduled third day yesterday, amid signs of progress. Australia’s S&P/ASX was up 0.9% while Japan’s Topix was up 1.4% and Hong Kong’s Hang Seng was up 2.4%.

‘‘Our market has a strong, firm tone with reasonable leads from offshore. It’s a sea of green in Asia today and we are just part of it,’’ Peter McIntyre, investment adviser at Craigs Investment Partners, said.

‘‘It’s interesting there is still a shutdown in the US and that hasn’t had a material impact on markets at all but the reduced trade tensions have certainly had a significant impact on markets.’’

Volumes remained light in holidayaffected trading. A2 Milk added 3.7% to trade at $11.48, benefiting from the improved sentiment.

Trading was light with only 548,970 shares changing hands versus a threemonth daily average of 1.36 million.

Top gainers included Meridian Energy, which was up 2.6% at $3.59 and Mainfreight, which rose 2% to $31.40. Trading in Meridian was relatively robust with 1.17 million shares trading versus its 90day daily average of 1.58 million. It was the thirdmost traded stock on the market. Mainfreight traded only about 10% of its average volume.

Spark made up around a quarter of the volume in the market yesterday, gaining 0.5% to $4.15.

Ryman Healthcare added 4.2% to $11.35, but volumes were tepid. The stock remains well off last year’s high of $14.09.

Overall, buyers seemed more confident about market valuations after a rough December and ‘‘they are starting to chip away and buy back in.’’

Pushpay continued to gather support, lifting 2.5% to $3.30. Its latest update had just confirmed to the market that its strategy was really working, he said.

Earlier this week, it said it was confident it would now have positive cash flows on an ongoing basis and reiterated its fullyear guidance.

The Fonterra Shareholders Fund rose 1.3% to $4.77. Fonterra announced it is selling its Farm Source division to Carrfields Livestock — a livestock agency provider — as it reviews all aspects of its business.

Kathmandu fell 1.7% to $2.29, still reeling from a disappointing Christmas sales update that ‘‘sent some investors away disillusioned’’.

About 51,000 shares were traded, versus a 90day average of 238,826.

Plexure Group rose 1.4% to $0.3650. Earlier, the company said it continued to comply with continuous disclosure after the NZX noted the share price was up more than 50% since December 24.

A The Australian sharemarket posted a third straight day of gains yesterday thanks to growing optimism about the USChina trade negotiations and the continued surge in oil prices.

The benchmark S&P/ASX200 index closed up 55.9 points, or 0.98%, to 5778.3, while the broader All Ordinaries was up 55.1 points, or 0.95%, at 5838.4. — BusinessDesk/AAP