Market commentaries

WELLINGTON: New Zealand shares joined a global rally on optimism the latest US delegation to Beijing will make meaningful gains in soothing strained trade relations and that US policymakers would avoid another government shutdown.

Tourism Holdings led widespread gains and SkyCity Entertainment Group fell after reporting a decline in firsthalf profit and a share buyback.

The S&P/NZX 50 index rose 0.6% to 9333.38. Within the index, 36 stocks gained, 11 fell, and three were unchanged. Turnover was $180.2 million.

‘‘People are more optimistic on the trade front and US President Donald Trump has backpedalled a bit on his wall,’’ Greg Smith, head of research at Fat Prophets, said.

Tourism Holdings led the market higher, up 3.1% at $4.69 and Z Energy gained 2.3% to $6.14.

Mr Smith said the neutral stances adopted by central banks in the US and Australia were also stoking demand for stocks offering steady dividends. New Zealand’s Reserve Bank adopted that stance yesterday, pushing out its projection to raise the official cash rate by about six months.

Mercury NZ was up 0.9% at $3.785, Meridian Energy gained 0.5% to $3.76 and Genesis Energy gained 0.3% to $6.4.

Smith said those Crowncontrolled electricity generatorretailers were a good proxy for highdividendpaying stocks, and had also benefited from favourable wholesale electricity prices.

SkyCity dropped 4% to $3.83. It reported an 11% decline in net profit to $82.8 million, in line with earnings guidance at the end of January. It also declared plans to buy back up to 5% of its outstanding shares over the coming year.

Spark New Zealand was the most active stock, rising 1% to $4.095. Trade Me slipped 0.2% to $6.36 and Fletcher Building gained 1.9% to $5.26.

Outside the benchmark index, Hallenstein Glasson Holdings gained 5.1% to $4.35 after flagging a gain in firsthalf profit. Millennium & Copthorne Hotels New Zealand fell 0.7% after reporting a 15% increase in annual profit and a higher dividend, while signalling slower growth for 2019.

PGG Wrightson fell 1% to 47.5c. After close of trading, the Commerce Commission approved the sale of its seeds business to Denmark’s DLF Seeds.

Falls by market giants CSL and Commonwealth Bank caused the Australian sharemarket to finish in modestly negative territory yesterday.

The benchmark S&P/ASX200 index closed down 15.5 points, or 0.25%, at 6063.6, while the broader All Ordinaries was down 8.6 points, or 0.14%, at 6140.1.

‘‘Despite global markets lifting on the prospect of a trade deal coming between US and China, the Aussie market is weaker today,’’ CommSec market analyst James Tao said.

Pharmaceutical giant CSL was down 3.92%, despite a 6.8% rise in firsthalf profit, while CBA fell 2.89% after going exdividend.

Taken together, the dip by the two companies amounted to a 23point fall in the ASX.

A number of other companies also reported earnings, with shares in gold miner Northern Star, stock transfer company Computershare and Adelaide oil and gas company Beach Energy up between 5.33% and 7.47% on positive earnings results.

Tabcorp shares dropped 3.98% and Carsales.com shares dropped 5.42% after their earnings reports disappointed investors. — BusinessDesk/AAP