Shares rise led by Auckland Airport
Healthier day on markets for a2 Milk, with 3% gain
New Zealand shares rose, led by Auckland International Airport, Spark and Fisher & Paykel Healthcare and as buyers returned to a2 Milk. Gentrack Group fell as earnings growth disappointed some bullish investors.
The S&P/NZX 50 Index rose 12 points, or 0.1 per cent, to 8647.86. Within the index, 12 stocks rose, 30 fell and eight were unchanged. Turnover was $193 million, of which A2 Milk made up about $50m and Spark contributed $30m.
Spark rose 1.8 per cent to $3.705, a seven-month high, having gained since the company said last week it was bringing forward restructuring costs and accelerating its “Quantum Programme” to transform the com- pany into the operator with the lowest costs.
“Our market has done extremely well, given the pressure from overseas,” said Grant Williamson, a director at Hamilton Hindin Greene.
A2 rose 3.1 per cent to $10.88, leading the market higher. The stock had dropped 16 per cent in the past month. F&P Healthcare rose 0.8 per cent to $13.10.. On Monday the company posted a 12 per cent gain in 2018 annual profit to the top end of its forecast range and said it expects record earnings in the coming year as it benefits from growing global demand. Auckland International Airport climbed 1.5 per cent to $6.65.
Gentrack dropped 6.7 per cent to $6.95 after the utilities software developer posted an 80 per cent gain in first-half earnings and said it had a strong pipeline of opportunities.
ANZ Banking Group fell 2.7 per cent to $29.40. The lender announced the sale by its New Zealand unit of the OnePath Life NZ business for $700m to NYSE-listed Cigna Corp. But Williamson said the Australian banks fell in line with financial stocks in other markets. Westpac Banking Corp fell 2.4 per cent to $30.15.
Stride Property rose 0.6 per cent to $1.78 after the group posted flat annual earnings as it beds in a reshaped portfolio where it clips the ticket as a property manager as well as directly owning real estate.
Outside the main index, Plexure shares soared 15 per cent to 22c after the mobile voucher firm released figures that showed it is starting to generate positive cash flow.