Spark and NZX lead sharemarket higher
Increased trade tensions fail to make impact on stocks
New Zealand shares rose as high dividend yields from the likes of Spark New Zealand and NZX remain attractive for investors in a low interest rate environment.
The S&P/NZX 50 index advanced 44.24 points, or 0.5 per cent, to 9315.77. Within the index, 35 stocks gained, 12 fell and three were unchanged. Turnover was $137.5 million.
Stocks across Asia were muted as investors were wary of the impact US President Donald Trump’s latest tariffs on Chinese imports will have on global growth. Futures pricing pointed to a small decline on Wall Street. Still, New Zealand’s market shrugged off those concerns with relatively high dividend yields attractive for investors.
Spark gained 1.9 per cent to $4.06, a yield of 6.3 per cent, NZX rose 1.8 per cent to $1.11, a yield of 7 per cent,
Genesis Energy advanced 1.8 per cent to $2.55, with a yield of 6.7 per cent, and Meridian Energy increased 1.5 per cent to $3.35, a yield of 5.8 per cent.
Grant Williamson, a director at Hamilton Hindin Greene, said the power companies were still benefiting from last week’s electricity price review paper, which removed a fear of Government intervention.
“The market continues to be underpinned particularly with the low interest rate environment,” he said. “Business confidence might be dimming, but it’s not flowing through to the stock market.” Sky Network Television rose 2.9 per cent to $2.12, leading the market higher. The pay-TV operator has been trading near a post-Independent News Ltd merger low ahead of the stock’s exit from the S&P/ASX 300 index at the end of the week. Auckland International Airport
increased 2.5 per cent to $7.145 after announcing plans to raise money through a retail bond. Exporters
Comvita rose 2.6 per cent to $6.30 and Fisher & Paykel Healthcare
gained 1.5 per cent to $15.32. Mainfreight gained 0.5 per cent to $29.50. Kathmandu Holdings rose 1.6 per cent to $3.23 after reporting a 33 per cent increase in annual profit, as expected. Shareholder Briscoe
Group fell 0.9 per cent to $3.50 ahead of its own result tomorrow.
Synlait Milk fell 1.3 per cent to $12.78 ahead of its annual result due today. Partner a2 Milk Co declined 1.2 per cent to $12.14. Tourism
Holdings dropped 2.8 per cent to $5.24, extending its quarterly decline to 22 per cent.