Market commentaries

WELLINGTON: New Zealand shares hit a record as retirement village operators rallied on the Government’s decision to ditch a capital gains tax.

The S&P/NZX 50 Index rose 73.85 points, or 0.7%, to a record 9,982.24. Within the index, 32 stocks gained, eight fell, and 10 were unchanged. Turnover was $105.2 million.

Summerset led the index higher, up 3.9% at $5.90 on a volume of 464,000 shares, more than its 90day average of 303,000. Metlifecare advanced 3.8% to $4.87 and Ryman Healthcare increased 1.3% to $11.85.

Mark Lister, head of research at Craigs Investment Partners, said the gains partly reflected the reduced threat of a capital gains tax hitting the housing market. ‘‘It’s also a function of them being sold off pretty aggressively ever since Summerset had that quarterly update, which was weaker than expected, and then we’ve had a couple of months of quite soft housing reports,’’ he said.

NZX chief executive Mark Peterson welcomed the Government’s decision, saying it would give investors confidence in the share market and promote broad participation in local markets. The stock was unchanged at $1.

Mr Lister said weak inflation data probably had a greater impact on the wider stock market, with rising expectations that the Reserve Bank will cut the recordlow 1.75% official cash rate at next month’s review. The NZX50’s 4.83% average dividend yield is the thirdhighest major equity index tracked by Refinitiv across Asia Pacific, behind Australia’s S&P/ASX 200 and Pakistan’s Karachi 100.

Utilities and property firms are strongly represented in the local index.

Precinct Properties New Zealand was the most traded stock on a volume of 2.6 million shares, more than twice it 894,000 three monthly average. It was unchanged at $1.59.

Spark New Zealand rose 1.1% to $3.69 on a volume of 1.7 million shares, well short of its 5.9 million average. Contact Energy rose 0.9% to $6.80 on a volume of 1.3 million shares, Meridian Energy was up 0.4% at $4.055 on 1.2 million shares, and Genesis Energy increased 1.9% to $3.16 on 1 million shares, more than twice its average.

Global cinema software analytics firm Vista Group

International rose 3% to a record $5.09.

A2 Milk Co hit an all time high $16.04, ending the day at $16, up 1.5%. Supplier Synlait Milk fell 1.2% to $10.50, while Fonterra Shareholders’ Fund units rose 1.4% to $4.32. Fonterra shares, which trade in a closed market, were up 0.9% at $4.30.

Trade Me was unchanged at $6.44, with 881,000 shares traded, ahead of its upcoming delisting. Agedcare operator Oceania Healthcare will join the NZX50 on May 3. It rose 2.9% to $1.05 on a volume of 375,000, less than its 614,000 threemonthly average.

Restaurant Brands New Zealand fell 3.4% to $8.36, adding to Tuesday’s decline.

Outside the benchmark index, travel software developer Serko climbed 6.9% to $3.55, a record close. It has gained 14% since April 10.

A The Australian sharemarket closed lower, dragged down by the mining giants and health care stocks.

The benchmark S&P/ASX200 index was down 21 points, or 0.33%, to 6,256.4 points at 1615 AEST yesterday, while the broader All Ordinaries fell 22 points, or 0.35%, to 6,350.3.

The Aussie dollar moved higher on betterthanexpected China data, breaking US72c to hit as high as 72.06c, a level not seen since February 21.

The move came after China’s National Bureau of Statistics announced the country’s industrial output expanded 6.5% yearonyear in the first quarter of 2019, topping expectations of a 6.3% rise.

Miners dipped after courts in Brazil said Vale’s Bructu mine could resume operations within 72 hours. BHP dropped 2.72% to $38.30, Rio Tinto was down 4.74% to $96.40 and Fortescue Metals dropped 8.52% to $7.41. Gold sunk to its lowest price for the year so far.

Pharma giant CSL dragged the health care sector down, shares dropping 1.87% to $193.03.

Tech stocks were also in the red, with Afterpay Touch down 5.89% to $23.34 and Wisetech Global down 5.81% to $21.90.

Dulux Group shares soared 27.12% to $9.75 after Japanese paint giant Nippon made a $3.8 billion offer to buy the Australian paint and coating company for $9.80 a share.

Westpac gained 1.51% to $26.81, Commonwealth was up 0.83% to $73.29, ANZ was up 1.17% to $26.72 and NAB was up 0.92% to $25.24.

Telstra gained 2.13% to $3.36, its best level in a year. — BusinessDesk/AAP