Kiwi shares gain on global positivity
Solid local earnings season helps push NZX up 0.5% with Summerset leading the way for second session Dollar edges up
New Zealand shares joined a global rally, buoyed by optimism over local earnings with retirement village operator Summerset Group gaining for a second day.
The S&P/NZX 50 index rose 38.81 points, or 0.5 per cent, to 8340.53 at the close yesterday. Within the index, 18 stocks gained, 23 fell and nine were unchanged. Turnover was $124 million.
Australia’s S&P/ASX 200 index was up 0.5 per cent in afternoon trading, while Hong Kong’s Hang Seng gained 0.7 per cent and Japan’s Topix was up 0.9 per cent.
New Zealand equities joined that rally while the local reporting season continued to show company earnings were largely growing at a modest pace.
“It’s just been a good, solid, uneventful reporting season,” said Mark Lister, head of private wealth research at Craigs Investment Partners. “Fletcher Building aside, it’s been pretty good . . . and shows the market in reasonably good heart.”
Summerset led the market higher for a second session, rising 6.4 per cent to $6.45 and adding to a 4.3 per cent gain on Friday.
The retirement village operator and developer beat earnings guidance when it reported on Friday, in contrast to rival Metlifecare, which yesterday fell short of expectations. Metlifecare shares fell 4.6 per cent to $5.96, the biggest decline on the day.
Among companies reporting on Tuesday, Vital Healthcare Property Trust rose 1.7 per cent to $2.09, Mercury Energy fell 1.5 per cent to $3.22, and PGG Wrightson gained 3.4 per cent to 61 cents.
Chorus was unchanged at $3.75, Spark New Zealand fell 1.2 per cent to $3.33, Fletcher shares rose 0.5 per cent to $6.53 and Comvita fell 4.3 per cent to $7.80. — BusinessDesk The New Zealand dollar has gained as markets wager new United States Federal Reserve chair Jerome Powell will remain measured in his first testimony this week — adding to the view that the Fed will only lift interest rates three times this year. The New Zealand dollar rose to US73.18 cents as at 5pm in Wellington from US72.85c cents at 8am and US72.88c on Friday in New York. The tradeweighted index was at 75 versus 74.84. Powell will testify before the House of Representatives and Senate committees this week.— BusinessDesk