Market commentaries

WELLINGTON: New Zealand shares rose for a fourth day as investors bet that further central bank stimulus and ongoing low interest rates would continue to support equities.

The S&P/NZX 50 Index gained 87.52 points, or 0.8%, to 11,743.73. Within the index, 27 stocks rose, 20 fell and three were unchanged. Turnover was $129 million.

Sharemarkets across Asia started the week with a ‘‘positive mindset’’ after an editorial in the

China Securities Journal said ‘‘fostering a healthy bull market’’ was important to the Chinese economy, ASB economist Mark Smith said.

The editorial triggered strong gains for Chinese equities and NZ’s benchmark joined the rise.

Peter McIntyre, an investment adviser at Craigs Investment Partners, said the steady upwards march was due to low interest rates and financial stimulus from central banks supporting equities and their promise of higher returns to investors.

‘‘That tail wind is pretty strong, and I don’t think it is going to die down any time soon.’’

Low interest rates and government bond buying enabled companies to access cheap debt to fuel growth and shareholder returns, he said.

Skellerup Holdings led the market higher, rising 3.8% to $2.21. The company said yesterday it would release its financial result on August 21, having already given upbeat guidance.

Mr McIntyre said it had been performing well since its update at the end of June and it would deliver a fullyear profit above $28 million.

Goodman Property Trust rose 2.4% to $2.135 and Chorus advanced 2% to $7.85.

Fisher & Paykel Healthcare increased 1.7% to $35.74, having yesterday shed rights to its 15.5cps dividend. Mr McIntyre said growing Covid19 numbers supported healthcare stocks.

A2 Milk gained 1.4% at $21.19. Both stocks have been stronger through the pandemic and now account for almost 30% of the index, underpinning yesterday’s rise.

Air New Zealand posted the day’s biggest decline, falling 2.4% to $1.42, and Auckland International Airport slipped 0.3% to $6.37. The national carrier agreed yesterday to suspend new bookings into NZ for the next three weeks to help the Government manage accommodation capacity at its isolation and quarantine facilities.

Pushpay Holdings fell 0.9% to $9.13 as investors took some profit off the stock.

Outside the benchmark index, Scott Technology climbed 9.1% at $1.80. It said it expected earnings to take a material hit from the pandemic, but there were signals revenue streams were returning to normal.

The Australian sharemarket closed flat, despite strong overseas leads, as traders pondered the impact of a sharp rise in new coronavirus cases in Victoria.

The S&P/ASX200 index finished down 1.7 points at 6012.9, while the All Ordinaries index gained 0.8 points at 6126.7.

The Australian dollar was buying US69.52c, down from US69.72c at the close of trade on Monday. — BusinessDesk/AAP