Shares rally as Trump predicts China deal
New Zealand shares rose for a third day as US President Donald Trump suggested a trade deal with China was on the cards. NZX led the gains. The S&P/NZX 50 index advanced 32.84 points, or 0.4 per cent, to 8648.38. Within the index, 21 stocks gained, 18 fell, and 11 were unchanged. Turnover was $110.8 million.
New Zealand’s market posted a late gain as investors latched on to Trump’s comments that he sees a “great deal” with China, but that Asia’s biggest economy isn’t ready yet.
Shane Solly, a portfolio manager at Harbour Asset Management, said investors have been sensitive to geopolitical risk. That, combined with the prospect of higher interest rates, has contributed to declines in equities.
“Donald Trump said he expected he can have a great deal with China, and that’s triggered a little rally in Australia and New Zealand,” Solly said. NZX led the market higher, up 2.9 per cent to $1.06 on modest volumes. The stock market operator unveiled a new pricing structure and listing rules. Air New Zealand advanced 2.3 per cent to $2.72 and a2 Milk rose 2 per cent to $10.17, both on lighter than usual volumes. Spark New Zealand was the most traded stock, with 3 million shares changing hands. It gained 2.1 per cent to $3.95 ahead of its annual meeting on Friday.
Z Energy extended its recovery from a two-year low, rising 1.2 per cent to $6.01 on a volume of 2.7 million shares, three times its 90-day average. Fisher & Paykel Healthcare increased 0.6 per cent to $13.45 on 1.6 million shares.
Contact Energy was unchanged at $5.52, Sky Network Television fell 1.3 per cent to $2.27 and Meridian Energy declined 1.3 per cent to $3.11. Of firms holding annual meetings today, Auckland International Airport rose 0.6 per cent to $6.88, Methven fell 0.9 per cent to $1.16, and Tourism Holdings was unchanged at $4.95.
Outside the benchmark index, Plexure Group jumped 29 per cent, or 4.5 cents, to 20 cents after reporting a maiden interim profit.
Pyne Gould Corp dropped 9.3 per cent, or 2.5 cents, to 24.5 cents on its biggest volume of trading in more than two years. Tilt Renewables increased 0.4 per cent to $2.29.
Green Cross Health rose 3.1 per cent to $1.32 after announcing the appointment of Carter Holt Harvey exec Rachael Newfield as its new group CEO from January.