Highest single-day rise in five months
F & P Healthcare and Ebos push market by 1 per cent
Strong performances from Fisher & Paykel Healthcare and Ebos pushed the New Zealand sharemarket to its highest single-day rise in more than five months – up more than 1 per cent.
The S&P/NZX 50 Index climbed steadily in the afternoon before the Anzac Day break and closed at 11,946.43, increasing 143.15 points or 1.21 per cent after reaching an intraday low of 11,784.53.
The previous best day was a gain of 1.61 per cent to 11,352.84 on November 15.
There were 90 gainers and 52 decliners over the whole market on volumes of 28.34 million share transactions worth $95.96 million.
Fisher & Paykel Healthcare, which has a 13.2 per cent weighting on the NZX 50, surged $1.33 or 2.79 per cent to a 12-month high of $27.87. Ebos Group, with a 4.7 per cent weighting, was up 66c or 1.9 per cent to $35.45.
The local market ignored a hotterthan-expected inflation rate in Australia. Matt Goodson, managing director of Salt Funds Management, said the higher consumer price index (CPI) in Australia will likely encourage the Reserve Bank there to keep its official cash rate on hold for the remainder of the year.
“Our market shook that off,” he said. “The half-yearly review of the
MSCI Large Cap Index finishes at the end of this month and it’s still a lineball call whether Ebos falls out.”
The March quarter CPI in Australia increased 1 per cent compared with 0.6 per cent at the end of December and ahead of the 0.8 per cent forecast.
Annual inflation at the end of March was 3.6 per cent, lower than 4.1 per cent in December but again ahead of the forecast of 3.5 per cent. Rents and education costs increased and piled further pressure on the cost of living, dimming hopes of an interest rate cut this year.
The S&P/ASX 200 Index fell after the release of the CPI and was trading at 7690.7 points, up just 0.09 per cent, at 6pm NZ time.
In the United States, the major indices rose sharply for the second day running. Dow Jones Industrial Average was up 0.69 per cent to 38,503.69 points; S&P 500 increased 1.2 per cent to 5070.55; and Nasdaq Composite rose 1.59 per cent to 15,696.64.
Tesla was up more than 10 per cent in after-hours trading to US$163.96 ($275.93) after telling the market it is accelerating the launch of more affordable new models of electric vehicles.
Tesla’s first-quarter result was lower than expected with revenue of US$21.3 billion ($35.84b), down 9 per cent, and earnings of US$1.1b ($1.85b), down 55 per cent.
Spotify surged 11.4 per cent to US$303.31 ($510.45) after beating firstquarter estimates – revenue was €3.61b ($6.5b) – and forecasting strong second-quarter earnings guidance.
At home, Auckland International Airport was up 8c to $7.87; a2 Milk gained 16c or 2.52 per cent to $6.52; The Warehouse increased 5c or 3.68 per cent to $1.41; Skellerup added 4c to $4.49; and Hallenstein Glasson rose 16c or 2.74 per cent to $6.01.
In the energy sector, Contact gained 10c to $8.63; Mercury was up 7c to $6.45; and Manawa declined 11c or 2.44 per cent to $4.39.
Summerset Group gained 7c to $11.17 after telling shareholders at the annual meeting it was on track to deliver 675-725 new homes in the 2024 financial year and will be opening the Auckland St Johns Village and main building at the Lower Hutt Boulcott Village. The key will be executing new sales at these villages.
Heartland Group was up 2c or 1.92 per cent to $1.06 after raising $79m from the retail entitlement offer with support from 81 per cent of the shareholders.
The bank has completed its $210m capital raising, having gained $131m from institutional placement.
Other gainers were Fonterra Shareholders’ Fund up 9c or 2.5 per cent to $3.69; NZX increasing 3c or 2.65 per cent to $1.16; Stride Property improving 3c or 2.36 per cent to $1.30; and Gentrack adding 12c to $8.24.
Freightways declined 20c or 2.35 per cent to $8.30 and Fletcher Building eased 9c or 2.27 per cent to $3.88.
AFT Pharmaceuticals was down 6c or 1.92 per cent to $3.07 after telling the market it was now developing a topical treatment for strawberry birthmarks in children, in conjunction with Massey Ventures and Wellington-based Gillies McIndoe Research Institute.