Power companies lead NZ market higher
New Zealand shares gained as growing bets for an interest rate cut by the Reserve Bank stoked demand for utility companies such as Mercury NZ, Meridian Energy and Genesis Energy with steady dividends.
The S&P/NZX50 index rose 70.77 points, or 0.8 per cent, to 9280.77. Within the index, 33 stocks gained, nine fell, eight were unchanged. Turnover was $187.6 million.
Stocks across Asia rose after US legislators reached an in-principle funding deal to avoid another Federal government shutdown.
“There’s a bit of optimism around the Americans putting together something to avoid the shutdown at the end of the week,” said Mark Lister, head of private wealth research at Craigs Investment Partners.
The Reserve Bank’s policy review today also supported the local market, as traders increasingly price in lower interest rates over the coming year. Lister said that boosted companies with “highly attractive and sustainable dividend yields” such as the electricity generator-retailers, property stocks and other utilities.
Mercury led the market higher, up 2.7 per cent at a record close $3.75 on a volume of 752,000 shares. Gene
sis rose 2.6 per cent to $2.76 on a volume of 1.4 million shares. Meri-
dian gained 2.5 per cent to a record close $3.74 on 663,000.
Goodman Property Trust rose 2.2 per cent to $1.66 on a volume of 615,000, slightly more than average, while infrastructure investor Infratil was up 0.9 per cent at $3.99 on a volume of 1.5 million. Contact En-
ergy gained 1.1 per cent to $6.39 on a volume of 974,000.
Spark New Zealand was the most traded stock on a volume of 15.4 million. It gained 0.8 per cent to $4.055. Trade Me was unchanged at $6.37 on a volume of 3.3 million and
a2 Milk gained 0.4 per cent to $13.45
on a volume of 1.8 million. Precinct Properties New Zealand rose 0.7 per cent to $1.53, Kiwi Property Group was unchanged at $1.45 and Chorus closed at a record $5.16, up
0.8 per cent. Fletcher Building rose 1.4 per cent to $5.16 and Z Energy was up 0.7 per cent at $6.
Fisher & Paykel Healthcare
increased 0.5 per cent to $13.74,
Scales Corp was up 1.1 per cent at $4.45. Pushpay Holdings posted the biggest decline, falling 3.6 per cent to $3.20 on half its average volume, while Heartland Group decreased 1.5 per cent to $1.36 on a smaller-thanusual volume of 258,000. Outside the benchmark index, Al
lied Farmers climbed 13 per cent, or 0.9 cents, to 8.1 cents. South Port
New Zealand was unchanged at $6.50 after reiterating annual earnings guidance when reporting a 7 per cent decline in first-half profit. The port operator is hoping to provide extra services to the Tiwai Point smelter, which reopened a fourth potline last year.