Market commentaries

WELLINGTON: New Zealand shares snapped a threeday decline yesterday as global oil prices stabilised and upbeat investment sentiment on Wall Street flowed through to the local market. Refining NZ bounced back from Wednesday’s sharp drop.

The S&P/NZX50 Index rose 28.44 points, or 0.3% to 10,446.11. Within the index, 35 stocks increased, 11 fell, and four were unchanged. Turnover was $144.8 million.

Investor sentiment improved after a strong lead from Wall Street where investors were buoyed by news of a $US500 billion ($NZ838 billion) stimulus package pushed the three benchmark indices at least 2% higher. This was accentuated by Brent crude oil prices recovering from a 21year low, levels which stoked concern about the global economy’s outlook.

Sam Trethewey, a portfolio manager at Milford Asset Management, said the oil price recovery had helped local fuel stocks find support again.

‘‘The local stories have been New Zealand Refining and Z Energy benefiting from the stabilisation in oil prices overnight,’’ he said.

The refinery operator led the market higher, up 8.4% at 90c — although still down 7.8% this week.

It was up as high as 96c yesterday.

Z Energy increased 2.9% to $3.15, off 2.8% this week. New Zealand Oil & Gas rose 4.1% to 50.5c.

Argosy Property yesterday recorded a fullyear portfolio revaluation gain of $61.7 million, or 3.6%. Of this, $50.8 million was booked in the September 30, 2019 interim results.

While the industrial and office components of the portfolio gained value, large format retail fell 6.5% as the Covid19 crisis impacted rental and vacancy assumptions. Argosy’s share price rose 2.9% to $1.08.

Mr Trethewey said retirement village operators received a boost after Housing Minister Megan Woods yesterday confirmed private open home viewings would be able to take place at Alert Level 3.

Summerset Group rose 2.6% to $6.31, Ryman Healthcare advanced 4.6% to $12.50, Arvida Group increased 3% to $1.33, and Metlifecare edged 0.2% higher to $4.13.

Vital Healthcare Property Trust climbed 1.6% to $2.49.

Synlait Milk rose 2.3% to $7.10. Trethewey said it was up on the strength of A2 Milk’s recent update, showing increased sales during the virus outbreak. Synlait is the major supplier of A2 products. A2 fell 0.8% to $19.60.

Media company NZME fell 12.2% to 21.5c after the Government announced a $50 million support package aimed at propping up the endangered media sector.

‘‘Clearly investors don’t think the $50 million does enough to solve the issues facing the company at the moment,’’ Mr Trethewey said.

Broadcasting Minister Kris Faafoi himself underscored this first phase of support alone would ‘‘not be sufficient to see the sector through a prolonged period of restrictions and reduced advertising.’’

The Australian sharemarket treaded water for a second straight day, with gains for mining and energy stocks outweighed by losses for the rest of the market.

The benchmark S&P/ASX200 benchmark index closed down 4.1 points, or 0.08%, to 5217.1 points after being up as much as 61 points in the first hour of trade. The All Ordinaries index finished one point, or 0.02% lower, at 5,272.8 points. — BusinessDesk/ AAP