Market commentary

WELLINGTON: New Zealand shares rose for a third day as investors welcomed interim results of a Covid19 vaccine trial which showed a positive immune response to the virus.

The S&P/NZX 50 Index rose 116.38 points, or 1%, to 11,610.52. Within the index, 34 stocks rose and 16 fell. Turnover was $186.9 million.

The experimental vaccine, developed by biotech company Moderna, safely induced an immune response against Covid19 in all 45 participants, researchers reported in The New England Journal of Medicine. Moderna has now announced that a phase 3 test of the vaccine, involving 30,000 people, will begin on July 27 and be completed by late October.

The news helped to spur a rally on equity markets as investors hoped the vaccine would pave the way for fast economic recovery from the virusinduced recession.

Stephen Innes, global market strategist at AxiCorp, said a vaccine would be ‘‘the ultimate recession stopper’’ and reports of progress overwhelmed any negative sentiment from the rising number of virus cases in the United States.

The market had been further supported by stronger than expected economic data in recent weeks, he said.

Asian markets were mixed. Australia’s S&P/NZX 200 was up 1.6%, while Hong Kong’s Hang Seng Index was down 0.3%. That followed a strong night on Wall Street where the S&P 500 and the Nasdaq both gained roughly 1% and the Dow Jones Industrial Index rose more than 2%.

The benchmark was led higher by cinema software developer Vista Group International, which rose 4.2% to $1.25, trimming its yeartodate loss to 63.6%.

Auckland International Airport advanced 1.9% to $6.09, Tourism Holdings rose 1.7% to $1.80 and Air New Zealand increased 1.2% to $1.305.

Oceania Healthcare advanced 3.1% at $1.

Summerset Group Holdings advanced 2.4% to $7.35 and Arvida Group rose 2% to $1.51. Metlifecare crept closer to the $6 takeover price, rising 0.2% to $5.90.

Fisher & Paykel Healthcare rose 2.8% to $37.20.

Genesis Energy rose 2.8% to $2.94, retracing some of its losses since the announcement the Tiwai Point aluminium smelter will close next year. — BusinessDesk