Market commentaries

AUCKLAND: New Zealand shares rose in quiet trading yesterday, led by Fonterra Shareholders’ Fund units which hit a fourmonth high as investors and suppliers took some confidence in the dairy processor’s new strategy.

The S&P/NZX 50 Index increased 82.80 points, or 0.8%, to 10,975.62. Within the index, 36 stocks rose, nine fell, and five were unchanged. Turnover was $69.1 million, with just one stock trading on volume of more than a million shares.

Grant Davies, an investment adviser at Hamilton Hindin Greene, said trading was very quiet, in part because investors were somewhat occupied by three capital raisings that are under way: Kathmandu, Goodman Property Trust, and Tower.

Kathmandu was the mosttraded stock on a volume of 1.1 million shares, more than three times its 90day average of 283,000. The outdoor equipment chain is in the process of raising $145 million in an entitlement offer to help fund its Rip Curl acquisition. The shares were unchanged at $3.10.

Goodman Property slipped 0.2% to $2.21 and Tower fell 2.2% to 67c.

Fonterra rose as high as $4.03, the highest since midJune, and ended the day up 5.8% at $4 on a volume of 440,000 units, about twice its 90day average of 216,000. The farmerowned shares rose the same amount, up 5.8% at $4.

Both securities have been rising since Fonterra unveiled a streamlined strategy to extract value rather than pursuing volume.

A2 Milk rose 1% to $13.19 while Synlait Milk decreased 0.4% to $9.02, with just 5000 shares traded.

Restaurant Brands New Zealand was up 5.1% at $11.39 on a volume of 28,000 shares.

Ebos Group rose 1.1% to $25.14 ahead of its annual meeting, at which the New Zealand Shareholders’ Association plans to oppose a planned increase in directors’ fees.

Fletcher Building increased 1.1% to $4.81. The first day of court proceedings in which Fletcher is being sued and is countersuing contractor Electrix over the Christchurch Justice & Emergency Precinct began yesterday.

Mr Davies said activity on the market was quiet, with international uncertainties such as Brexit, the future of United States President Donald Trump, and the USChina trade war, weighing on investors.

Spark New Zealand increased 0.1% to $4.565 on a volume of just 702,000 shares, well short of its 3.2 million average.

Sky Network Television posted the day’s biggest decline, down 1.8% at $1.10, with 111,000 shares traded, down on its 821,000 average.

Outside the benchmark index, New Zealand Oil & Gas was unchanged at 62c ahead of next week’s special meeting.

The NZ Shareholders’ Association plans to vote against what it considers an ‘‘opportunistic’’ takeover offer by controlling shareholder OG Oil & Gas at 62c.

PaySauce rose 5.9% to 54c after saying it more than doubled thirdquarter revenue to $401,000.

The Australian sharemarket posted gains across the board yesterday after jobs figures from the United States reassured traders the world’s largest economy was not on the brink of recession after all.

The benchmark S&P/ASX200 index closed up 46.5 points, or 0.71%, to 6563.6 points, while the broader All Ordinaries was up 49.8 points, or 0.75%, to 6686.7 points. — BusinessDesk/AAP