Trade talk optimism helps lift NZ market
New Zealand shares gained, supported by optimism that the US and China can reach a trade deal. A2 Milk benefited from the lift in sentiment. The S&P/NZX 50 index increased 126.07 points, or 1.4 per cent, to 8947.22. Within the index, 35 stocks gained, seven fell and eight were unchanged. Turnover was $91 million.
Asian markets pushed higher after the US and China extended trade talks in Beijing for an unscheduled third day yesterday, amid signs of progress.
“Our market has a strong, firm tone with reasonable leads from offshore. It’s a sea of green in Asia and we are just part of it,” said Peter McIntyre, investment adviser at Craigs Investment Partners.
“It’s interesting there is still a shutdown in the US and that hasn’t had a material impact on markets at all but the reduced trade tensions have certainly had a significant impact on markets.”
He noted that volumes remain light in holiday-affected trading.
A2 Milk added 3.7 per cent to trade at $11.48, benefiting from the improved sentiment.
“It has become a key pick for brokers for 2019 as far as stock performance is concerned,” said McIntyre. Trading was light with only 548,970 shares changing hands versus a three month daily average of 1.36 million.
Top gainers included Meridian
Energy, which was up 2.6 per cent at $3.59 and Mainfreight, which rose 2.0 per cent to $31.40. Trading in Meridian was relatively robust with 1.17 million shares trading versus its 90-day daily average of 1.58 million. It was the third most traded stock on the market.
Spark made up around a quarter of the volume in yesterday’s market, gaining 0.5 per cent to $4.15. Ryman
Healthcare added 4.2 per cent to $11.35, but volumes were tepid. The stock remains well off last year’s high of $14.09 and “some investors are saying enough is enough”, said McIntyre.
Pushpay continued to gather support, lifting 2.5 per cent to $3.30. Their latest update has “just confirmed to the market that their strategy is really working”, he said.
The Fonterra Shareholders
Fund rose 1.3 per cent to $4.77. Fonterra announced it is selling its Farm Source division to Carrfields Livestock, a livestock agency provider, as it reviews its business.
On the downside, Kathmandu fell 1.7 per cent to $2.29, still reeling from a disappointing Christmas sales update that “sent some investors away disillusioned”. Around 51,000 shares were traded, versus a 90-day average of 238,826.