Market commentaries

WELLINGTON: New Zealand shares gained as growing bets for an interestrate cut by the Reserve Bank stoked demand for utility companies, such as Mercury NZ, Meridian Energy and Genesis Energy, with steady dividends.

The S&P/NZX 50 index rose 70.77 points, or 0.8%, to 9280.77. Within the index, 33 stocks gained, nine fell and eight were unchanged. Turnover was $187.6 million, of which Spark New Zealand accounted for $62.5 million.

Stocks across Asia rose after US legislators reached an inprinciple funding deal to avoid another Federal Government shutdown.

‘‘There’s a bit of optimism around the Americans putting together something to avoid the shutdown at the end of the week,’’ said Mark Lister, head of private wealth research at Craigs Investment Partners.

The Reserve Bank’s policy review today also supported the local market, as traders increasingly priced in lower interest rates over the coming year. Mr Lister said that boosted companies with ‘‘highly attractive and sustainable dividend yields’’ such as the electricity generatorretailers, property stocks and other utilities.

Mercury led the market higher, up 2.7% at a recordclose $3.75 on a volume of 752,000 shares, slightly more than its 90day average. Genesis rose 2.6% to $2.76 on 1.4 million shares, compared with its 334,000 average. Meridian gained 2.5% to a recordclose $3.74 on 663,000, half its average volume.

Goodman Property Trust rose 2.2% to $1.66 on a volume of 615,000, slightly more than average, while infrastructure investor Infratil was up 0.9% at $3.99 on a volume of 1.5 million, more three times its usual volume.

Contact Energy, which on Monday reported increased earnings and a biggerthanexpected dividend, gained 1.1% to $6.39 on a volume of 974,000.

Spark New Zealand was the most traded stock on a volume of 15.4 million, more than twice its 90day average of 3.5 million. It gained 0.8% to $4.055. Trade Me was unchanged at $6.37 on a volume of 3.3 million and a2 Milk gained 0.4% to $13.45 on a volume of 1.8 million.

Among other companies trading on volumes of more than 1 million, Precinct Properties New Zealand rose 0.7% to $1.53, Kiwi Property Group was unchanged at $1.45 and Chorus closed at a record $5.16, up 0.8%. Fletcher Building rose 1.4% to $5.16 and Z Energy was up 0.7% at $6.

A weaker kiwi was also a boon for exporters. Fisher & Paykel Healthcare increased 0.5% to $13.74, Sanford rose 1.2% to $6.85, both on smaller volumes than average. Scales Corp was up 1.1% at $4.45 on slightly bigger volumes than normal.

Pushpay Holdings posted the biggest decline, falling 3.6% to $3.20 on half its average volume, while Heartland Group decreased 1.5% to $1.36 on a smallerthanusual volume of 258,000.

Outside the benchmark index, Allied Farmers climbed 13%, or 0.9c, to 8.1c, after affirming earnings guidance for a strong first half and satisfactory annual profit.

South Port New Zealand was unchanged at $6.50 after reiterating annual earnings guidance when reporting a 7% decline in firsthalf profit. The port operator is hoping to provide extra services to the Tiwai Point smelter.

Australian shares closed modestly higher after a day of choppy trading marked by mixed local data.

The S&P/ASX200 index closed up 18.3 points, or 0.3%, at 6079.1 points, while the All Ordinaries was up 20.1 points, or 0.33%, at 6148.7.

Data released by the Australian Bureau of Statistics showed household lending was down 6.9% in December, while National Australia Bank said business confidence had rebounded in January after falling sharply in December.

‘‘It’s been relatively muted,’’ with a ‘‘cautiously optimistic finish,’’ said Nick Twidale, chief operating officer of Rakuten Securities.

He said the market was waiting to see if the US and China could resolve their differences before March 1, when the US is set to raise tariffs on China further.

Oil futures bounced, with Santos, Origin Energy and Beach Energy up between 1.17% and 2.22%.

While the big four banks were lower for a third straight day, Macquarie Group shares were 2.15% higher after it said it expected profits to soar 15%.

CSL shares increased 1.25% to $193.69 ahead of tits earning announcements today.

Specialty packaging company Pact Group’s shares skidded 9.67% after it said it would recognise noncash impairment charges in the range of $310 million to $410 million amid challenging business conditions.

BHP shares gained 0.67% to $36.28, while Telstra shares gained 0.31%, to $3.23. — BusinessDesk/AAP