Metro Glass recovery helps boost NZ shares

Company’s shares lift by 3.9 per cent after suffering 7.2 per cent fall earlier in the week’s trading

New Zealand shares rose, led higher by a rebounding Metro Performance Glass. Spark New Zealand gained while Comvita fell.

The S&P/NZX 50 index gained 31.31 points, or 0.4 per cent, to $8390.01. Within the index, 30 stocks rose, 13 fell and seven were unchanged. Turnover was $131.9 million.

The NZX 50 March quarter rebalancing was released after the close of trading and will take effect next Friday. Metro Performance Glass was removed from the benchmark index, replaced by Gentrack Group.

Metro Glass was the best performer on the index, up 3.9 per cent to 80c, having sold off earlier this week on concern it would drop out of the NZX 50 because of its shrinking market capitalisation. The stock fell 7.2 per cent over the week before bouncing yesterday. Gentrack Group rose 1.4 per cent to $6.39.

“On the whole, trading has been in line with regional markets, though it’s hard to read much into things with volumes so light,” said James Smalley, investment adviser at Hamilton Hindin Greene. “There were a few stocks bouncing back yesterday after selling from going ex-dividend, and a lot of it’s going to happen with the rebalancing after the market closes.”

Spark New Zealand rose 3.5 per cent to $3.57 and has gained 6.2 per cent this week.

“It has had a couple of good days. Admittedly volumes haven’t been huge, but maybe it’s the appeal of the dividend post result,” Smalley said. “Obviously there’s some further action going on with the ‘third telco’ in New Zealand, Vocus. A number of its assets are on the block, and that might be seen as a bit of a positive for Spark.”

Comvita was the worst performer, down 2.9 per cent, while Scales Corp fell 1.8 per cent to $4.50 and Fisher & Paykel Healthcare dropped 1.7 per cent to $12.98.

Trade Me Group gained 1.4 per cent to $4.39. The Commerce Commission yesterday announced it had rejected Trade Me’s purchase of rival auto marketplace Motorcentral, saying it couldn’t rule out the tie-up undermining competition.

The antitrust regulator turned down Trade Me’s clearance to acquire Christchurch-based Limelight Software after almost eight months of reviewing the application. Wellington-based Trade Me wanted to run Limelight’s Motorcentral as a standalone business, while also letting dealers upload their listings to a range of websites.