Covid effects high on investors’ minds

Courier and information management company Freightways sped to a new high, as the New Zealand sharemarket finished nearly half a per cent ahead.

The market had traded most of the day in negative territory as Covid-19 clouded investors’ minds.

The S&P/NZX 50 Index’s late surge saw a 60 point turnaround, closing up 65.66 points or 0.49 per cent to 13,399.10, after reaching a low of 13,272.26.

Trading, in the end, was solid with 40.18 million share transactions worth $166.07m.

There were 71 gainers and 70 decliners over the whole market.

Shane Solly, portfolio manager with Harbour Asset Management, said the worsening pandemic and a community case in New Zealand have caused investors to reconsider the rate of recovery.

“There was a rotation back into cyclical stocks but with a questionmark over the pandemic, investors are revisiting growth stocks that benefit from Covid — such as technology. There’s also the question of whether the US Federal Reserve will provide more financial stimulus, and a merger/acquisition play involving Infratil. So there’s plenty to chew on,” he said.

Freightways is one stock benefiting from the pandemic. Its share price climbed 35c or 3.32 per cent to $10.90, surpassing its previous high of $10.70.

Mainfreight was up $1.20 or 1.75 per cent to $69.80, just short of its December 30 high of $69.89.

A third Covid beneficiary, market leader Fisher and Paykel Healthcare, led the late trading, finishing ahead 27c to $35.37 on turnover worth $27.6m after reaching an intraday low of $34.27.

Three stocks longing for the border to reopen had down days. Air New Zealand fell 6c or 3.51 per cent to $1.65; SkyCity Entertainment decreased to $3.05; and Z Energy, dragged down by lower jet and marine fuel sales, shed 7c to $3.05.

Auckland International Airport increased 14c or 1.9 per cent to $7.50 even though it reported a continuing plunge in passengers.

Total passenger volumes decreased 69.7 per cent in November and 70.3 per cent in December compared with the same months in 2019. Domestic passengers were down 38.3 per cent in November and 32.2 per cent in December.

Utilities investor Infratil climbed 20c or 2.71 per cent to $7.58 after rumours circulated out of Australia that a second bidder, Melbournebased IFM Investors, was eyeing a takeover.

Trustpower, 50 per cent owned by Infratil and part of a takeover package, slipped 4c to $8.66 but it has risen sharply lately.

Contact Energy was up 5c to $9.24, Mercury rose 7c to $7.37, Meridian gained 2c to $8.10, and Genesis

fell 7c or 1.82 per cent to $3.78. Tilt Renewables rose 29c or 5 per cent to $6.09.

Retirement village operator Oceania Healthcare was up 5c or 3.38 per cent to $1.53 after reporting a solid half-year result on Friday.

Among the gainers, Ryman Healthcare gained 10c to $15.81; a2 Milk increased 7c to $10.97; Chorus

was up 9c to $8.40; and Foley Wines

climbed 9c or 4.74 per cent to $1.99.

On the downside, Port of Tauranga fell 14c to $7.56, cancer diagnostic firm Pacific Edge fell 4c to $1.01, Synlait Milk was down 8c to $4.66, and PGG Wrightson fell 14c to $3.45.