Market commentaries

WELLINGTON: New Zealand shares rose as stocks exposed to consumer leisure sectors found support with Covid19 restrictions set to ease, led by payTV operator Sky Network Television.

The S&P/NZX 50 increased 46.36 points, or 0.4%, to 10,695.59. Within the index, 21 stocks rose, 26 fell, and three were unchanged. Turnover was $181.1 million.

Firms hamstrung by the Covid19 containment picked up more support yesterday as investors rallied around stocks with exposure to the leisure sector, given the prospect of looser restrictions allowing more activities and easier shopping.

‘‘Some of the consumer discretionary assets have had a bit of a recovery as there is a freeing up of the economy here and in Australia,’’ Shane Solly, a portfolio manager at Harbour Asset Management, said.

Sky TV led the market higher, rising 6.7% to 32c as investors anticipated professional sport resuming under Alert Level 2. The pay TV operator’s biggest asset has been its grip on premium sports rights, something it has had to do without through the restrictions.

‘‘Undoubtedly, sports content is the lifeblood of Sky TV, so getting some content back in the form of rugby and netball must be a huge relief,’’ Mr Solly said.

‘‘That is the key differentiator that people buy Sky telly for and there will be no other ways to watch the game if you can’t go to the stadiums.’’

New Zealand Rugby, a Sky TV shareholder, said it had been ‘‘given the green light for professional sport to resume at Level 2’’ and a Super Rugby tournament was ready to go as soon as the alert level was downgraded.

Mr Solly said several businesses that may need to raise capital also found support from investors buying in in an anticipation of an offer.

Tourism Holdings has also been on a winning streak this week, up 25% since Monday after rising 6% to $1.60 yesterday. Investors have been encouraged by lockdown restrictions easing around the world and the prospect of transtasman travel resuming.

Casino operator SkyCity Entertainment Group rose 2.1% to $2.49, again on the prospect of the leisure economy kicking back to life.

Companies offering reliable dividends are also back in demand as interest rates are expected to stay low for the foreseeable future. While the Reserve Bank has said it would not move the official cash rate from its 0.25% level for the next year, some economists predict the cash rate may move into negative territory.

‘‘People are thinking about how to invest in that environment, with income yieldtype stocks having a bounce,’’ Mr Solly said.

Spark New Zealand rose 2.5% to $4.60, Mercury NZ increased 3.5% to $4.80 and Meridian Energy rose 2.2% to $4.70

Property for Industry said yesterday its balance sheet and cash flow were in a strong enough position for it to continue paying dividends, one of few listed companies to pay out a dividend during the crisis. Still, it warned it was still unable to assess the impact Covid19 would have on earnings, as several tenants required rent relief. The shares fell 2.2% to $2.21.

Australian shares finished higher yesterday, as retailers were buoyant after Prime Minister Scott Morrison and the federal cabinet disclosed a road map to reopen the country for business.

The benchmark S&P/ASX200 index finished up 26.9 points, or 0.5% higher, at 5391.1 points, while the All Ordinaries index closed up 38.1 points, or 0.7%, at 5488.

‘‘Not a bad performance,’’ CommSec market analyst Steven Daghlian, who noted for the week the market finished up 145.2 points, or 2.77%, said.

‘‘This has been a good week, the best we’ve had since early April.’’ — BusinessDesk/AAP