Market commentaries
WELLINGTON: New Zealand shares rose for a fourth day as exporters including Kathmandu Holdings and A2 Milk helped drive the market higher amid growing optimism over USChina trade talks.
The S&P/NZX 50 Index climbed 62.04 points, or 0.6%, to 9908.39. Within the index, 25 stocks rose, 18 fell and seven were unchanged. Turnover was $149 million.
A2 hit a record $16 and ended the day at $15.77, up 3.6% on a volume of 1.5 million, more than its 90day average of 858,000. The milk marketing firm was one of several exporters at the top of the leader board after positive reports about trade negotiations between the world’s two biggest economies.
‘‘The previous week was off a wee bit, but the buyers are certainly back in control this week,’’ said Grant Williamson, a director at Hamilton Hindin Greene.
‘‘The main influence from here is A2 — that’s just for its weighting in the index.’’
Among other exporters on the benchmark index, Kathmandu Holdings rose 3.6% to $2.33 on a smaller than usual volume of 84,000 shares. Fishing company Sanford increased 2.2% to $6.85 on a larger volume than usual of 50,000 shares. Fisher & Paykel Healthcare advanced 1.4% to $15.48 on 2 million shares, more than twice its 680,000 three-monthly average.
Fletcher Building rose 1.8% to $5.05 on a volume of 453,000 shares, less than half its average. The government is seeking feedback on plans for wideranging reforms in the construction sector.
Williamson said the wider building sector had had to contend with ongoing issues for many years. There had to be a better way of tendering than the current process, which has seen companies fail and triggered Fletcher’s withdrawal from vertical construction.
‘‘The way they’ve structured a number of contracts at a fixed price is absolutely ridiculous,’’ he said of the wider sector.
Sky Network Television led the market higher, up 4% at $1.30 on a volume of just 196,000 shares, less than a fifth of its threemonthly average.
Contact Energy was the most traded stock on a volume of 2.3 million shares, compared to its usual 1.6 million. It increased by 0.2% to $6.74.
Auckland International Airport slipped 0.3% to $7.97 on a volume of 1.8 million shares. The airport reported flat international passenger movements in February and a small increase in domestic passenger numbers.
Of companies trading on volumes of more than a million shares, Kiwi Property Group rose 1.3% to $1.51, Meridian Energy fell 1% to $4.04, Goodman Property Trust increased 0.6% to $1.73 and Genesis Energy dropped 1.9% to $3.10. Spark New Zealand rose 1% to $3.65 on a volume of 1.2 million shares, well down on its 5.9 million average.
Restaurant Brands New Zealand dropped 5% to $8.65 after falling short of annual earnings guidance and decided against paying a final dividend. It will retain its earnings for what it says it a record capital spending programme.
New Zealand Refining fell 2.8% to $2.05 on a volume of 441,000 shares, twice its 90day average. Summerset Group declined 2.4% to $5.68.
Trade Me was unchanged at $6.44 on a volume of 990,000 shares. The online auction site’s $6.45ashare takeover by Apax Partners was approved by the High Court, with investors expected to be paid on May 8. Trading in its shares will be suspended at the close of May 2.
Outside the benchmark index, Eroad rose 3.9% to $2.70 after reporting faster US sales growth in the March quarter. Australian shares closed higher, with the banking and health care sectors offsetting a dour day for energy and telecom stocks.
The benchmark S&P/ASX200 index closed up 26 points, or 0.42%, to 6277.4 points at 1615 AEST on Tuesday, while the broader All Ordinaries rose 24.4 points, or 0.38%, to 6,372.3.
The ASX200 has risen six out of its last seven sessions.
The Australian dollar showed signs of strength, dipping by just 0.4% after the release of dovish Reserve Bank minutes showing members discussing a cash rate cut, which could discourage international investors.
Health care stock was the bestperforming sector, up collectively 1.27%, with Cochlear up 7.86% to $180.76 after the hearing aid company debuted a new implant.
The banking sector was up 0.76%, with all of the big banks in the green.
Westpac gained 1.34% to $26.41, Commonwealth Bank gained 0.69% to $72.69, ANZ rose 0.61% to $26.41 and NAB was up 0.72% to $25.01.
The mining sector was flat, with BHP down 0.43% to $39.37 and Rio Tinto up 0.45% to $101.20.
Gold stocks gained, with Newcrest mining up 1.93% to $25.38 and Northern Star up 0.56% to $8.95, even though the price of the yellow metal declined slightly.
‘Energy shares lost ground, with Caltex Australia down 2.52% to $26.66