NZ market lifts as US, China tensions ease
New Zealand shares were led higher by exporter a2 Milk as cooling trade tensions between China and the US allayed fears of slowing global growth and boosted markets across Asia.
The S&P/NZX 50 index gained 52.55 points, or 0.6 per cent, to 8876.09. Within the index, 22 stocks rose, 24 fell and four were unchanged. Turnover was $96 million.
Stocks across Asia rose, with New Zealand the first market to open after Chinese and US presidents Xi Jinping and Donald Trump agreed to refrain from escalating their trade dispute.
“There was good strength generally across the market based on the progress seen out of China and the US trade negotiations,” said James Lindsay, a portfolio manager at Nikko Asset Management. “That’s good news to see some progress.”
Exporter a2 Milk rose 5.4 per cent to $10.91 on slightly higher than average volumes after saying it will meet China’s new cross-border e-commerce requirements affecting its sales of Platinum infant formula. Government officials extended the grace period to let foreign firms comply by March 31 next year.
Pushpay Holdings increased 0.6 per cent to $3.32 on average volumes, while exporter Fisher & Paykel Healthcare fell 0.4 per cent to $13.25 in light trading.
Courier and document management firm Freightways increased 2.3 per cent to $7.16. Global logistics firm Mainfreight rose 1 per cent to $30.60 in typically light trading, while national carrier Air New Zealand increased 0.7 per cent to $3.10.
Spark New Zealand advanced 1.1 per cent to a record close $4.275. It was the most traded stock with 2.5 million shares changing hands. Meridian Energy slipped 0.2 per cent to $3.30 on 1.8 million shares and Kiwi
Property Group fell 1.8 per cent to $1.36 on volume of 1.5 million shares.
Argosy Property rose 0.9 per cent to $1.17 on bigger than normal volume of 1.1 million shares. Genesis Energy fell 2.2 per cent to $2.505.
Tourism Holdings rose 1.4 per cent to $5 after negotiations for a potential sale of some New Zealand assets ended when the suitor unsuccessfully tried to get a lower price. Z Energy fell 0.5 per cent $5.72 after the Government confirmed it will order the Commerce Commission to investigate the retail fuel market. Gentrack Group fell 2.8 per cent to $5.83 in light trading while Sky
Network Television declined 2.1 per cent to $2.30.
Outside the benchmark index, TIL Logistics was unchanged at $1.62 after acknowledging potential strike action at its petrol tanker unit. Hallenstein Glasson fell 2.9 per cent after the retailer said it faced tough trading conditions.