Market commentary
WELLINGTON: Fisher & Paykel Healthcare made a recovery and the New Zealand sharemarket surged nearly 1% yesterday on news that an agreement has been made on the United States debt ceiling.
The increased investor confidence saw the S&P/ NZX 50 Index climb steadily all day and close at 11,935.65, up 105.62 points and almost wiping out the loss on Friday.
There were 101 gainers and just 33 decliners over the whole market, though trading was light with 75.5 million shares worth $75.22 million changing hands.
At the weekend, the White House and House Republicans agreed that the $US31 trillion ($NZ51 trillion) debt ceiling will be raised for two years and there will be a cap on spending.
Devon Funds Management head of retail Greg Smith said the agreement still had to pass through Congress and Senate but the timing was earlier than past impasses.
‘‘Both sides made concessions and it removes the possibility that the US will default on its debt obligations, though there will be a knockon impact on borrowing costs,’’ he said.
The Dow Jones Industrial Average was up 1% to 33,093.34 points; the S&P 500 gained 1.3% to 4205.45; and Nasdaq Composite rose 2.19% 12,975.69. It has increased 24% for the year.
At home, market leader Fisher & Paykel Healthcare rebounded 45c to $24.43 after falling 6.5% on Friday on slowing earnings growth.
Meridian Energy was up 9c to $5.44; Auckland International Airport gained 9c to $8.83 and Spark added 6c to $5.285.
Ryman Healthcare gained 11c to $6.14, with new director Dean Hamilton becoming board chairman on July 31.
Mercury Energy, up 3c to $6.33, is planning a $100 million fiveyear green bonds offer, with the ability to accept another $50 million of oversubscriptions. Manawa gained 4c to $4.79. Contact gained 4c to $7.95.
Other gainers were Napier Port, up 6c to $2.58; Stride Property up 4c to $1.39; Steel & Tube rising 5c to $1.16; and Serko adding 12c to $3.12.
T&G Global rose 5c to $2.04; Task Group added 4c to 59c; Gentrack was up 8c to $4.38; and Eroad gained 2c to 63c.
Among the decliners, Scott Technology fell 15c to $2.60; NZ Oil & Gas dropped 3c to 36.5c; NZME shed 2c to 97c; and Bremworth slid 2c to 39c.
Heartland Group declined 3c to $1.57; Sky TV fell 5c to $2.54; and Pacific Edge shed 1.5c to 45c.
Sky City Entertainment gained 3c to $2.30 after updating the market on the Adelaide situation. The commissioner for the South Australian gaming regulator has asked SkyCity to appoint an independent expert to review the Adelaide casino’s antimoney laundering financing and host responsibility enhancement programmes.
Eftpos provider Smartpay Holdings rose 16c to $1.71 after reporting a 300% rise in net profit to $8.34 million on revenue of $77.77 million, up 62%, for the year ending March.
NZ Automotive Investments surged 7c to 30c after increasing annual revenue 25.4% to $82.73 million, operating earnings (ebitda) 26% to $6 million, and net profit of $1.29 million for the 12 months ending March.
NZ Auto had an improved fourth quarter and 2 Cheap Cars increased its market share from 4.4% to 4.5% with a total of 8367 vehicle sales, up 6%.
Goodman Property Trust was up 2.5c to $2.20 after announcing John Dakin as chairman to replace longserving Keith Smith, and David Gibson as deputy chairman.
Metro Performance Glass was unchanged at 15.6c after reporting a 12% increase in annual revenue to $236.1 million and a net loss of $10.5 million because of a $10 million impairment on New Zealand goodwill. Revenue for its Australian Glass Group rose 32%, while New Zealand’s was up 5%. —