Shares surge 1% to hit new record
New Zealand shares surged to a f resh record, led by a2 Milk Co and Fletcher Building amid international demand for Kiwi companies. The S&P/NZX 50 index rose 86.07 points, or 1 per cent, to 8899.52. Within the index, 25 stocks rose, 15 fell and 10 were unchanged. Turnover was $190 million.
“It was another very strong day on the market, with good demand particularly from foreign buying — once the Australian market opens about midday, it picks up,” said Grant Williamson, director at Hamilton Hindin Greene. “Among the leading stocks there’s very good demand. For medium and smaller-caps, there doesn’t seem to be a lot of interest at the moment, but a lot of blue-chip stocks are coming in for very good buying.
“The first three months of the year, the index was down a touch, but since April to the start of June it’s risen almost 6.5 per cent. It’s a very nice turnaround in the local market,” Williamson said. “There’s good demand for growth stocks too, like a2 and retirement village stocks — not a lot of volume for retirement stocks, but certainly a lot of demand.”
A2 Milk was the best performer, up 4.4 per cent to $11.38, while Fletcher Building gained 2.2 per cent to $6.84 and Auckland International Airport rose 1.5 per cent to $6.87.
Summerset Group led the retirement stocks, rising 1.4 per cent to $ 7.48, with Ryman Healthcare gaining 11c, or 0.9 per cent, to $12.05. Ryman also gave up a 10.9c final dividend yesterday.
Investore Property was the worst performer, down 2.6 per cent to $1.51, with Kathmandu Holdings dropping 5c or 2.1 per cent to $2.23 as it shed rights to a 4c interim dividend.
Kiwi Property Group dipped 1.1 per cent to $1.36. It reiterated its dividend guidance at its annual general meeting and said its current projects are on track. The company said its annual dividend payment for the year to March 31, 2019, will be 6.95c a share, up from 6.85c in the year to March 2018. Chief executive Chris Gudgeon announced he would be leaving in September after 10 years with the company and chairman Mark Ford said that “the board should be in a position to announce Chris’s successor in the very near future.” —