Index snaps losing streak as NZ Refining and SkyCity climb

New Zealand shares rose, snapping a six- session streak of declines, led by New Zealand Refining Co, Xero and SkyCity Entertainment Group.

The S& P/ NZX 50 Index gained 54.28 points, or 0.8 per cent, to 7250.52. Within the index, 32 stocks rose, 12 fell and six were unchanged. Turnover was $ 170.3 million.

The local index i s down 2.9 per cent this week, starting the week on a sour note when it fell more than it did after the Brexit vote as investors dumped stocks on Wall Street on growing expectations the Federal Reserve would resume hiking interest rates.

“We’re just having a bit of a bounce after the weakness we’ve experienced this week,” said Grant Williamson, director at Hamilton Hindin Greene. “It’s probably been one of the worst weeks we’ve experienced in quite some time, it’s a pretty big move down for the local market after having such a good period,” he said.

“We’re starting to see investors pay more attention to overseas markets, particularly the US, and the talk of the Fed doing something with interest rates before the end of the year — I think investors are going to keep a pretty close eye on that scen- ario for the next wee while.” The US central bank’s next policy review is next week in Washington.

Williamson said yesterday’s bounce could also be from money paid to investors from the Nuplex Industries acquisition by Allnex Belgium being recycled into other companies.

NZ Refining was the best performer, up 4 per cent to $ 2.35. The country’s only oil refinery put out its monthly throughput and margin report this week for the July/ August period. It had a gross refinery margin of US$ 6.20 per barrel, at the top end of its historical margin range, and throughput of 6.8 million barrels.

Xero advanced 3 per cent to $ 19.99, while SkyCity lifted 2.5 per cent to $ 4.58. Genesis Energy rose 1.8 per cent to $ 2.25, Meridian gained 1.8 per cent to $ 2.81, and Mercury advanced 1.7 per cent to $ 2.97.

Stride Property was the worst performer, down 3 per cent to $ 1.95. Kiwi Property Group dropped 1.7 per cent to $ 1.465 and Property for Industry fell 1.2 per cent to $ 1.64.

Outside the main index, New Zealand Oil & Gas fell 4.7 per cent to 51c. The energy explorer launched a stand in the market to buy back as many as 40 million shares for as much as 55c apiece.

Rakon shares climbed 10 per cent to 22c after activist shareholders rallied up enough support to dump marketing director Darren Robinson from the board at yesterday’s annual meeting as part of an effort to loosen the founding family’s grip on the components maker.

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