Sharemarket up as THL upgraded
New Zealand shares edged higher as Tourism Holdings snapped a seven-day slide on a broker upgrade. Spark New Zealand was among several companies shedding rights to dividends.
The S&P/NZX 50 index increased 15.81 points, or 0.2 per cent, to 9360.87. Within the index, 22 stocks gained, 21 fell and seven were unchanged. Turnover was $150.7 million.
Grant Williamson, a director at Hamilton Hindin Greene, said the index had teetered between negative and positive territory and largely ignored Wall Street’s gain overnight on Wednesday.
“The Dow was quite firm, but it hasn’t flowed through to Australia or New Zealand,” he said. The Dow Jones Industrial Average rose 0.6 per cent.
Tourism Holdings rose 4.1 per cent to $5.30 after Forsyth Barr upgraded the stock to “outperform”, saying fears about valuation were overdone. The rental campervan operator had shed 11 per cent in a seven-day decline that took the stock to a 10-month low. Forsyth Barr kept its target price at $6.
The power companies mostly gained after Government data showed renewable energy generation was at a 37-year high in the June quarter. The Tiwai Point smelter is close to restarting its fourth potline after a six-year break, Meridian Energy said.
Genesis Energy rose 1.2 per cent to $2.575, Meridian increased 1.2 per cent to $3.40, Trustpower advanced 0.2 per cent to $6.06 and
Contact Energy gained 1 per cent to $5.90. Mercury NZ was unchanged at $3.35. Williamson said the energy companies remained in demand with their relatively high dividend yields.
Among the blue-chip stocks, a2 Milk Co rose 0.9 per cent to $12.38,
Mainfreight increased 0.3 per cent to $29.90, Air New Zealand declined 0.2 per cent to $3.17 and
Fletcher Building decreased 1.4 per cent to $6.23. Spark fell 2.1 per cent, or 8.5c, to $3.98, after shedding rights to dividends of 12.5c per share. Chorus declined 0.5 per cent to $4.975. Williamson said both telecommunications stocks hit records on Wednesday and investors were taking some profit on recent gains.
Other stocks to go ex-dividend include Port of Tauranga, which fell 1.4 per cent, or 7c to $5.08. It shed rights to an 11c dividend.
Comvita gave up rights to a 2c dividend, but rose 2.8 per cent, or 18c, to $6.65.
Restaurant Brands New Zealand gained 0.9 per cent to $7.73 after reporting a 12 per cent increase in second-quarter sales. Williamson said the fast-food operator was showing good signs of same-store growth as well as benefiting from its international expansion.
Outside the benchmark index,
Briscoe Group increased 0.9 per cent to $3.53. The retailer increased first-half profit 2.7 per cent and raised its interim dividend for an 11th straight year.