Exporters lead shares to another high
Glamour stocks carry on their merry way
New Zealand shares rose yesterday as the exportoriented growth stocks A2 Milk and Xero extended recent gains, while insurer CBL Corp declined.
The S&P/NZX50 Index increased 23.17 points, or 0.3 per cent, to 8060.98, another record close.
Within the index, 21 stocks rose, 21 fell and eight were unchanged. Turnover was $194 million.
“It’s more of the same today really, the glamour price-momentum stocks are carrying on their merry way,” said Matt Goodson, managing director at Salt Funds Management.
“I don’t think the market is even remotely focused on when [a government is formed], I think it’s more focused on what it is and what are the policies. The market hasn’t paid a great deal of attention to date except via the currency which has been beneficial to a number of stocks who a weaker currency helps.”
Stocks which have enjoyed recent gains extended that run with
Synlait Milk
up 3.8 per cent to $7.04, gaining 3.1 per cent to $33.95, and
rising 2 per cent to $7.75. This year, the stocks have respectively gained 118 per cent, 88 per cent and 257 per cent, ahead of the benchmark index’s gain of 17 per cent.
All three are export-focused businesses and have benefited from recent pressure on the kiwi dollar.
another exporter, gained 1.3 percent to $13.05 and rose 1.3 per cent to $7.11.
Milk Co Fisher & Paykel Healthcare, Z Energy CBL Corp
was the worst performer, down 2.3 per cent to $2.98. It has made a technical adjustment to its minimum solvency capital, lifting it to $121 million from $107 million.
“It’s come out that their minimum solvency capital is a little bit higher than previously stated, which would imply less headroom from their current capital position, though there still remains plenty of headroom,” Goodson said.
New Zealand Refining Co
fell 1.6
ance Glass Pushpay Holdings Metro Perform-
per cent to $2.48 and declined 1 per cent to $1.02. Outside the benchmark index,
rose 8 per cent to $2.96. The mobile payments app company said annualised committed monthly revenue has jumped 96.8 per cent and reiterated its target to break even on a monthly cash-flow basis before the end of 2018.
“It came out with some good numbers, they look like they’re going to get to their revenue targets a bit quicker than initially planned,” Goodson said. “We’re in a market at the moment, across Asia and indeed globally, which is prepared to pay up aggressively for high-growth companies making their numbers.”
dropped 20 per cent to 36.5 cents. It wants to raise $21.3
Pacific Edge
million at 32c apiece in a deeply discounted rights issue, which it says will fund the cancer diagnostics firm’s goal of breaking even on a cash flow basis in the March 2019 year.
“The market is clearly hoping that they would be out with an announcement regarding Kaiser, a hugely influential client. That would still appear to be imminent, but not there yet,” Goodson said.