Market commentaries

WELLINGTON: New Zealand shares closed at their highest level in more than a month as investors were buoyed by the prospect of the lockdown coming to an end, with some of the hardesthit stocks such as Vista Group International and Air New Zealand leading the market higher.

The S&P/NZX 50 Index rose 195.12 points, or 2%, to 10,159.02. Within the index, 34 stocks rose, 13 fell and three were unchanged. Turnover was $184 million.

The benchmark index continuing to rally from its March 23 low as the pace of new Covid19 cases slows, increasing the likelihood the lockdown will be eased on April 22.

Milford Asset Management portfolio manager Sam Trethewey said that was prompting investors to buy into stocks that would benefit as the consumer economy kicked back into gear.

‘‘The key challenge at the moment is understanding what Level 3 looks like, and what that means for each company.’’

Prime Minister Jacinda Ardern is expected to provide a detailed outline of what operations will be permitted under Level 3 tomorrow.

Air New Zealand led the market higher, rising 15.6% to $1.04. The airline has said it would focus on the domestic market for the foreseeable future.

Other stocks set to benefit from increased consumer activity also gained: cinema analytics software developer, Vista Group International increased 14.9% to $1.16, retailer Kathmandu Holdings advanced 7.8% to 69 cents, and casino operator SkyCity Entertainment Group increased 7.4% to $2.31.

The Treasury yesterday released a range of scenarios for the impact of the virus on the domestic economy, all depicting a leap in unemployment and a yearlong recession, followed by a recovery relative to the size of Government stimulus.

Mr Trethewey said a recession was already priced into the share market, but the depth and length could become a key issue for investors.

Domestic logistic company Freightways — often viewed as a bellwether for the domestic economy — rose 10.2% to $6.28. Global logistics group Mainfreight fell 0.9% to $35.27.

Fletcher Building advanced 8.4% to $3.86 as investors considered its construction workers may be back on the tools sooner than expected.

Auckland International Airport rose 1.2% to $5.82.

Media company NZME — which is outside the benchmark index — rose 8.1% to 20 cents after it announced costcutting measures, including axing 200 jobs to adjust for falling advertising revenue.

Sky Network Television increased 3.8% to 27.5 cents.

Fisher & Paykel Healthcare increased 1.2% to $27.31 and a2 Milk rose 5.1% to $18.37.

Trustpower posted the day’s biggest decline, down 3% at $6.21.

Mr Trethewey said the worstperforming stocks yesterday had largely held up well through the recent downturn.

A gold price surge and strong gains for Afterpay propelled the Australian sharemarket to its best levels in a month in a volatile postEaster session.

The S&P/ASX200 benchmark index finished Tuesday up 100.8 points, or 1.87%, to 5,488.1.

The broader All Ordinaries index closed up 103.1 points, or 1.9%, to 5,542.5. — BusinessDesk/AAP