Trust­power, milk dar­lings lead shares to an­other record high

Weekend Herald - - MARKETS -

ew Zealand shares hit an­other record, led by Trust­power and In­fratil on earn­ings up­grades, while Fletcher Build­ing gave back gains.

The S& P/ NZX50 in­dex rose 0.3 per cent, or 21.2 points, to 8089.32. Within the in­dex, 26 stocks rose, 16 fell and eight were un­changed. Turnover was $ 179 mil­lion.

Grant Davies, in­vest­ment ad­viser at Hamil­ton Hindin Greene, said the stock mar­ket is un­per­turbed by the con­tin­ued lack of gov­ern­ment.

“The mar­ket has been through this be­fore, it’s re­ally just boil­ing down to what com­pa­nies are do­ing rather than what the gov­ern­ment is do­ing,” Davies said. “Stocks are be­ing driven by mo­men­tum at the mo­ment.”

Xero, Syn­lait Milk and A2 Milk Co, all of which have seen strong gains over the past fort­night af­ter pos­i­tive news, con­tin­ued to rise yes­ter­day. Xero gained 3.1 per cent to $ 35.10; Syn­lait rose 0.3 per cent to $ 7.48; and A2 ad­vanced 0.4 per cent to $ 7.77.

Trust­power led the in­dex, up 3.9 per cent to $ 5.89. It raised an­nual earn­ings guid­ance for a third time this fi­nan­cial year with strong whole­sale elec­tric­ity prices on both sides of the Tas­man and in­creased gen­er­a­tion in New Zealand, also boost­ing the out­look for con­trol­ling share­holder In­fratil whose shares gained 1.6 per cent to $ 3.16. The Tau­ranga- based com­pany fore­casts earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion, amor­ti­sa­tion and fair value ad­just­ments to be be­tween $ 255 mil­lion and $ 270m in the year end­ing March 31, 2018, up from a pre­vi­ous fore­cast of $ 225m- to$ 245m. In­fratil now sees ebitdaf of be­tween $ 485m and $ 525m in the year end­ing March 31, 2018, up from a pre­vi­ous fore­cast of $ 460m- to$ 500m.

Fisher & Paykel Health­care rose 1.3 per cent to $ 12.82. It is con­sid­er­ing whether to ap­peal a rul­ing by the Re­gional Court in Mu­nich that ri­val ResMed did not in­fringe its patents in one of the cases in the con­tin­u­ing in­tel­lec­tual prop­erty dis­pute over its face and nasal masks.

Fletcher Build­ing was the worst per­former, down 1.9 per cent to $ 7.71, though Davies said the stock was just giv­ing back Thurs­day’s gains.

NPT gained 3.5 per cent to 59.5c. The listed prop­erty in­vestor has sold its in­ter­est in the AA Cen­tre in cen­tral Auck­land to SkyCity En­ter­tain­ment Group for $ 47 mil­lion, as it looks to re­po­si­tion the busi­ness af­ter a board over­haul. Sky City fell 0.8 per cent to $ 3.71.

Ware­house Group dropped 0.9 per cent to $ 2.14. Founder Sir Stephen Tin­dall will take a year off from the board to fo­cus on his other com­mit­ments, es­pe­cially the prepa­ra­tions for Auck­land to host the Amer­ica’s Cup.

His son Rob­bie Tin­dall will stand in as an al­ter­nate di­rec­tor, the re­tailer said.

Stephen Tin­dall is tak­ing a break to fo­cus on his com­mit­ments as Team New Zealand chair, such as se­cur­ing the nec­es­sary in­fra­struc­ture for Auck­land’s host­ing of the Amer­ica’s Cup de­fence.


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