Market commentaries

WELLINGTON: New Zealand shares rose as Freightways and Chorus both gained after delivering earnings in line with expectations. Synlait Milk jumped before this week’s dairy auction and a potential hike in the farmgate milk price.

The S&P/NZX 50 index increased 35.42 points, or 0.4%, to 9344.63. Within the index, 30 stocks rose, 16 fell, and four were unchanged. Turnover was $136.8 million.

Earnings season continued. Freightways was up 1.2% at $7.90 after the courier and information management firm lifted firsthalf profit 6%. The company said the New Zealand and Australian markets remained positive, but it was keeping close tabs on domestic economic activity for signs of a downturn.

Chorus reported a 3.3% decline in underlying earnings as copperline customers converted to fibre products on other local fibre companies. The network operator is targeting a return to earnings growth in the 2020 financial year. The shares increased 0.3% to $5.22.

Tom McBride, an investment adviser at Hamilton Hindin Greene, said the Freightways result was positive, while the Chorus earnings were ‘‘what you’d expect from an infrastructure company’’. Both companies traded on lighter than usual volumes of 131,000 and 190,000 shares respectively.

Metlifecare dropped 2.5% to $5.12, on twice its average volume, after reporting a smaller gain in the value of its property portfolio, which led to a decline in firsthalf profit.

Mr McBride said impairment charges on remediation work also weighed on the stock.

Rival retirement home operators Ryman Healthcare gained 3.2% at $11.34 and Summerset Group increased 0.5% to $6.36, on smaller volumes than usual.

Synlait led the market higher, up 4.1% at $10.75 on a volume of 227,000 shares, more than twice its 90day average. Economists anticipate Fonterra Cooperative Group may lift the farmgate milk price for farmers this week, after a string of increases at recent Global Dairy Trade auctions. A2 Milk, which hit a record last week, declined 0.3% to $14.55 on a volume of 820,000.

Fonterra Shareholders’ Fund units fell 1.1% to $4.53, while Fonterra shares, which trade in a closed market, were also down 1.1% at $4.54.

Retailer Kathmandu Holdings rose 2.1% to $2.44 on a volume of 612,000, more than twice its average. Government data showed a bigger increase in retail spending through the December quarter than analysts had predicted.

Meridian Energy rose 2.3% to $3.795 on a volume of 2 million shares, while Genesis Energy was up 2.2% at $2.80, with just 282,000 shares traded.

Spark New Zealand was the most traded stock, with a volume of 11 million, compared to its 4.1 million 90day average. The telecommunications company slipped 0.3% to $3.70.

Auckland International Airport rose 1.1% to $7.50, Fletcher Building increased 0.6% to $5.01, and Kiwi Property Group advanced 1.1% to $1.42.

A Australian shares finished higher as investors cheered optimism about a potential USChina trade deal.

The benchmark S&P/ASX200 index closed up 19 points, or 0.31%, to 6186.3 points. while the broader All Ordinaries was up 21.7 points, or 0.35%, at 6263.6.

US President Donald Trump tweeted yesterday that it had been a ‘‘very good weekend’’ after talks between US and China negotiators and that he was ‘‘delaying the US increase in tariffs now scheduled for March 1’’.

The Australian currency moved up after the Twitter message was posted.

The Aussie dollar was buying US71.48c, from 70.96c on Friday. — BusinessDesk/AAP