Market commentaries

WELLINGTON: The S&P/NZX 50 Index closed above 10,000 for the first time in almost a month yesterday as dwindling numbers of new Covid19 cases helped buoy some of the most exposed sectors of tourism, retail and aged care.

The benchmark index increased 2.3% to 10,031.66, the highest close since March 12. Within the index, 29 stocks rose, 16 fell, and five were unchanged. Turnover was $314 million.

Investors welcomed signs of the pandemic’s spread slowing down, as China’s Wuhan ended a twomonth lockdown, and Austria announced plans to reopen on April 14, after it was able to get on top of the virus quickly.

The number of new cases of Covid19 in New Zealand rose to 1210, after 50 new cases reported yesterday — a drop from both the 54 new cases on Tuesday and the 67 reported on Monday. The Washington Post ran a story praising New Zealand’s quick response to the crisis, saying the country was not just flattening the curve but ‘‘squashing it’’.

Nikko Asset Management head of equities Stuart Williams said investors welcomed this type of positive news to weigh against negative economic forecasts and potential job losses.

SkyCity Entertainment Group led the market higher, up 8.8% at $1.97. The casino and hotel operator has been among the hardest by the pandemic, as a global shutdown in tourism all but shut down its businesses.

Retirement village operator Summerset Group increased 6.3% to $5.95, Restaurant Brands New Zealand advanced 4.6% to $10.30, and Tourism Holdings rose 4.8% to $1.10.

Auckland International Airport increased 1.2% to $5.45, while Air New Zealand fell 1.8% to 83.5c.

Infratil shares rose 7.2% to $4.30. The infrastructure investment company yesterday said it estimated operating earnings for the year ended March 31 at between $550 million and $560 million, down from the $575 million to $615 million previously forecast due to accounting treatment of partial asset sales. It warned it might pay a smaller dividend than the 11c per share previously signalled.

Retirement village operator Metlifecare slumped 17.4% to $3.51, posting the steepest fall of the day. The company said it was told Tuesday night that European buyout firm EQT was backing out of the $1.49 billion takeover.

Mainfreight increased 4.1% to $34.20 after it gave a market update reporting a 7% yearonyear decline in revenues.

Australian banking stocks were weaker after their credit ratings were downgraded by Fitch Ratings. The ratings agency said it expected the economies of both Australia and New Zealand to shrink as a result of Covid19.

Westpac Banking Corp fell 1.8% to $16.10 and Australia & New Zealand Banking Group slipped 1.2% to $16.50.

Kathmandu Holdings, which has large retail exposure in Australia, fell 10.1% to 62c.

The Australian share market dipped in the final minutes of trade as the Eurozone failed to pass a stimulus measure after 16 hours of talks.

The S&P/ASX200 benchmark index had looked set to close flat, despite weakness in the financial sector, but lost 38.8 points in the final minute of trade to finish down 45.4 points, or 0.86%, at 5206.9 points

The broader All Ordinaries index shed 42.5 points, or 0.8%, to 5258.8. — BusinessDesk