NZ sharemarket outperforms the Aussies
New Zealand shares finished stronger than their Australian counterparts as Australia & New Zealand Banking Group kicked off reporting by the “four pillars” of the banking sector.
The S&P/NZX index rose 103.93 points, or 1.2 per cent, to 8752.31. Within the index, 35 stocks gained, nine fell and six were unchanged. Turnover was $167.4 million.
Asian stocks followed Wall Street higher, with New Zealand one of the stronger performers. Australia’s S&P/ ASX 200 index was largely flat after ANZ was the first of three major banks posting annual reports. National Australia Bank and its Bank of New Zealand subsidiary report today.
Greg Smith, head of research at Fat Prophets, said Australia’s banking sector has been under pressure from the Royal Commission into financial services.
“It’s all about simplification and reducing complexity and ANZ are ahead of the curve on that front,” he said.
Dual-listed ANZ rose 1.8 per cent to $28.04 on the NZX after reporting a 5 per cent decline in group earnings. New Zealand was a highlight for the group with a 3 per cent increase in earnings. NZX fell 0.9 per cent to $1.05.
Kathmandu Holdings led the market higher, up 4.3 per cent to $2.68. Synlait Milk rose 3.8 per cent to $8.67 on average volumes as it recovers from a seven-month low. A2
Milk, which has a substantial shareholding in its supplier Synlait, increased 2.5 per cent to $10.42.
Air New Zealand rose 2.9 per cent to $2.80 on average volumes after reporting an increase in passenger numbers. Auckland International Airport
rose 1.6 per cent to $6.99 on higher than normal volumes after reaffirming guidance for a modest increase in annual earnings.
Tourism Holdings gained 1 per cent to $5 after the company said net profit will fall by as much as 15 per cent as it invests in building a global business. The RV rental firm said it will maintain dividend payments, despite that falling outside policy.
Spark New Zealand was the most traded stock, with 5.3 million shares changing hands. The shares were unchanged at $3.95 ahead of its annual meeting on tomorrow. Kiwi Property increased 0.4 per cent to $1.315. Vector gained 0.9 per
cent to $3.40. Meridian Energy rose
0.8 per cent to $3.135, and Z Energy increased 1.5 per cent to $6.10 ahead of first-half earnings today. Precinct Properties New Zealand was unchanged at $1.41, Contact Energy advanced 1.3 per cent to $5.59, Chorus was up 2.2 per cent to $4.75, and Mercury NZ rose 0.7 per cent to $3.40. Fletcher Building climbed 2 per cent to $6.04.