Market commentary

WELLINGTON: New Zealand shares rose as investors sought property stocks paying reliable dividends amid concerns over the Covid19 pandemic and heightened tensions between the US and China.

The S&P/NZX 50 Index advanced 59.35 points, or 0.5%, to 11,494.14. Within the index, 29 stocks rose, 17 fell, and four were unchanged. Turnover was $129 million.

Trading on the benchmark was volatile as investors swayed between the Covid19 outbreak worsening offshore and a more positive outlook in the domestic economy. Investor demand for reliable dividends won out as the NZX 50 ended the day stronger, having spent much of it in the red.

The local trading day started on the back foot after California’s state government reinstated restrictions to slow the rise of coronavirus infections, and as the US and China traded barbs over the South China Sea. Asian markets were generally weaker.

Hong Kong’s Hang Seng was down 1.7% in late trading, Shanghai’s Composite index was down 1.1%, and Australia’s S&P/ASX 200 fell 0.8%.

‘‘The sentiment offshore was pretty soft overnight,’’ Sam Trethewey, a portfolio manager at Milford Asset Management, said.

‘‘California pulling back its reopening plans and US tensions with China are causing some profittaking in the more volatile stocks locally,’’ he said.

Vista Group International has been among those whipped around by global fears over Covid. It fell 6.3% to $1.20. Tourism Holdings declined 2.8% to $1.77.

Fishing company Sanford led the market higher, rising 4.4% to $6.60 on a typically light volume of 31,000 shares.

Chorus increased 3.9% to $7.55, extending its recovery from a pullback on Friday when the Commerce Commission suggested it would change the way the internet infrastructure firm can recognise losses.

Mr Trethewey said investors were getting more comfortable with the commission’s announcement, and the stock has recovered 6.8% this week, after it dropped 8% on Friday.

Spark New Zealand, the network operator’s biggest customer, rose 2.2% to $4.805.

SkyCity Entertainment Group rose 3.4% to $2.47 and Synlait Milk advanced 3% to $7.26.

Goodman Property Trust climbed 2.8% to $2.22, Investore Property advanced 2.7% to $1.91, Precinct Properties New Zealand rose 1.8% to $1.68 and Kiwi Property Group was up 1% at $1.035.

F&P Healthcare increased 1.7% at $36.20 and a2 Milk rose 1.1% to $20.93.

Pushpay Holdings posted the day’s biggest decline, falling 8.4% to $8.46 after cornerstone shareholder, the Huljich family, sold a quarter of their stake, or 14.4 million shares, in an overnight block trade at $8.60 apiece for $123.8 million in total. — BusinessDesk