NZ shares lift amid US Midterm elections
New Zealand shares rose as results from the US Midterm elections indicated the Democrats would take control of the House but wouldn’t win the Senate. Z Energy gained as a2 Milk and Synlait Milk fell.
The S&P/NZX 50 index rose 38.37 points, or 0.4 per cent, to 8854.79. Within the index, 27 stocks rose, seven were unchanged and 16 fell. Turnover was $121.2 million.
According to Dow Jones Newswires, control of the Senate will have a major impact on the rest of President Donald Trump’s term.
A Republican majority would allow the President to continue to appoint conservative judges and confirm nominees to administration posts. It would also help Trump should Democrats win the House and seek to impeach him, since a trial would be in the Senate, and conviction needs a two-thirds majority vote.
Z Energy added 4.9 per cent to $5.54. The company has made an effort to clarify expectations for its second-half dividend after the firm’s shares plunged to a three-year low last week.
“Some of the selling has abated a little,” said David Price, director of institutional equities at Forsyth Barr. “When you are a yield stock you need to be clear about what you are doing and how you are doing it,” he said.
Z shares fell when the firm cut its full-year operating earnings guidance to $400m to $435m, reflecting high crude prices, the lower kiwi dollar and weaker consumer demand. The 12.5 cent interim dividend was about 5 cents a share less than investors had been expecting.
Pushpay shed 3.8 per cent to $3.58. The digital church collection plate operator says it expects to break even for the first time in December and to post its first earnings before interest, tax, depreciation, amortisation and currency adjustments in the year to March 2019.
A2 Milk shed 1.8 per cent to $10.31 and Synlait was down 4.1 per cent to $8.40. According to the Dairy Companies Association of New Zealand, news that the review of the ChinaNew Zealand FTA is unlikely to result in improved dairy access is disappointing for the local industry.
Goodman Property Trust rose 0.7 per cent to $1.51 after it reported a 47 per cent lift in first-half pre-tax profit as it benefited from fair value gains on investment properties.
Genesis Energy rose 0.7 per cent to $1.51. Earlier it said its target for earnings before interest, tax, depreciation, amortisation and changes in financial instruments of $400m to $430m in FY21 remained achievable.
Contact Energy lifted 3.0 per cent to $5.82. On Tuesday the company said its operating earnings during the past four months are ahead of last year.