Market commentaries

WELLINGTON: New Zealand shares gained as corporate earnings season approached, with Contact Energy the first major company out of the blocks on Monday.

Australian results have been mixed so far this week.

The S&P/NZX 50 index rose 43.1 points, or 0.5%, to 9176.61. Within the index, 24 stocks gained, 20 fell, and six were unchanged. Turnover was $101 million and eight companies clocked volumes of more than a million shares.

Matt Goodson, managing director at Salt Funds Management, said Australia’s reporting season had been mixed so far, but that it really gets under way on both sides of the Tasman next week.

‘‘It’s been reasonably quiet here this week.’’

Forsyth Barr analyst Andrew HarveyGreen expected Contact Energy to post a record firsthalf result on Monday, driven by strong hydro generation and high wholesale electricity prices. The shares rose for a third day, up 1.1% at $6.22, the highest close since February 2015. Its volume was lighter than usual at 735,000.

The Reserve Bank of Australia this week opened the door to cutting interest rates, while weakerthanexpected local labour market data encouraged traders to price in a greater chance of a reduction in New Zealand, as well. The prospect of lower interest rates helped boost Australasian equity markets on Thursday.

The local market was one of the few to gain yesterday across AsiaPacific after a weaker lead from Wall Street.

Utilities were a favourite among investors, given their defensive qualities.

Auckland International Airport rose 2.3% to $7.54 on a volume of one million shares, slightly less than its threemonth average volume of 1.1 million.

Mr Goodson said Auckland Airport might come under pressure if Air New Zealand’s warning of a slowdown in forward bookings spilled over to the airport operator, and also noted that its regulated pricing is under scrutiny. Air New Zealand fell 0.7% to $2.78 on a volume of 1.2 million shares.

Ryman Healthcare led the market higher, up 3.9% at $11.02 on lighter than usual volume of 459,000. Mr Goodson said the stock had been volatile in recent weeks.

Infrastructure investor Infratil gained 2.1% at $3.91, the highest close since the company undertook a twoforone share split in 2007.

Gentrack rose 1.1% to $5.11 on small volumes after signing a new contract with a UK water retailer.

Spark New Zealand was the most traded stock, with 3.6 million shares changing hands. The shares rose 0.5% to $4.05.

Precinct Properties New Zealand fell 0.3% to $1.515 on a volume of 1.5 million shares, twice its average volume. Sky Network Television increased 0.5% to $1.93 on a volume of 1.4 million, compared to a 497,000 90day average.

Of other companies trading on volumes of more than a million shares, Kiwi Property Group rose 0.7% to $1.435, Meridian Energy was unchanged at $3.65 and Fletcher Building was unchanged at $5.04.

Pushpay Holdings fell 2.9% to $3.34 on a volume of 391,000, in line with its 90day average. The payments software developer reported a 35% increase in thirdquarter sales yesterday, however, Mr Goodson said the revenue per user was a little short of expectations.

Australian shares finished the week on a down note, as energy and mining sectors dragged the local bourse.

The benchmark S&P/ASX200 index closed down 21 points, or 0.34%, at 6071.5 points, while the broader All Ordinaries was down 22.9 points, or 0.37%, at 6136.2.

CommSec market analyst James Tao said yesterday was the day ‘‘we end our fourday winning streak,’’ referring to recent gains by the ASX200.

The index finished up 3.56% on the week, its best weekly performance since it gained 3.81% in midJuly of 2016.

The markets were probably spooked by word from Washington that President Donald Trump and Chinese President Xi Jinping had no plans to meet before a March 1 deadline to resolve their trade dispute, which ‘‘puts a dent in those thinking we could see a quick resolution in that space,’’ Mr Tao said.

There was also gloomy news from the United Kingdom, with the Bank of England saying it expected the country’s economic growth to be at its lowest level since 2009.

The energy sector led losses as oil prices fell more than 2%. Oil and gas producer Santos Ltd lost 4.37% to $6.35 and Oil Search dropped 3.5% to $7.72.

A drop in copper prices resulted in BHP dropping 1.51%, to $35.33, and Rio Tinto dropping 1.77%, to $90.57.

NAB closed down 0.72%, or 18c, to $24.75, after the company announced after the close on Thursday that chief executive Andrew Thorburn and chairman Ken Henry would step down in the wake of criticism from the financial services royal commission.

Commonwealth Bank shares gained 0.93%, or 69c, to $74.75, while Westpac was down 0.33% and ANZ was up 0.11%.