Vital helps stop rot ahead of Fletcher return
Constructor to be lifted from trading halt
New Zealand shares gained, led by Vital Healthcare Property Trust and A2 Milk Co, as investors prepared for a potential selloff of Fletcher Building once it updates its losses within its construction division.
The S&P/NZX 50 Index rose 63.16 points, or 0.8 per cent, to 8122.22. Within the index, 28 stocks rose, 13 were unchanged and nine fell. Turnover was $120 million.
“After five days down in a row, the market has had a reasonable pickup today,” said Grant Williamson, director at Hamilton Hindin Greene.
“More news flow will start to kick off pretty soon with the reporting season. Investors will be looking forward to getting their teeth into some news.”
This morning, embattled construction company Fletcher Building’s shares are set to be lifted from their trading halt at $7.77. The company will make an announcement increasing the losses at its building and interiors (B+I) unit.
“The market can be quite forgiving once or twice, but this is the third time. Investors will be asking a lot more questions about the company, it doesn’t give a lot of confidence in their management,” Williamson said.
Vital led the index higher, rising 3.4 per cent to $2.12. A2 Milk rose 3.1 per cent to $9.07 and Meridian Energy gained 2.7 per cent to $2.825.
NZX was the worst performer, down 0.9 per cent to $1.12. Kiwi Property Group fell 0.8 per cent to $1.315 and Tourism Holdings dropped 0.7 per cent to $5.54.
Outside the benchmark index, Tower climbed 2.3 per cent to 66.5 cents. — BusinessDesk