Sky TV bounces, leads stockmarket higher
New Zealand shares gained, led by Sky Network Television bouncing back and Orion Health surging 20 per cent after it confirmed it’s considering sale options.
The S&P/NZX 50 Index rose 29.28 points, or 0.4 per cent, to 8393.27. Within the index, 24 stocks rose, 13 fell and 13 were unchanged. Turnover was $126 million.
Peter McIntyre, investment adviser at Craigs Investment Partners, said the market had firmed as the impact of tariff comments made by US President Donald Trump faded. “The day started off weaker and like the rest of Asia it gathered strength throughout the day,” McIntyre said.
Sky Network Television was the best performer, up 6.3 per cent to $2.35, meaning it’s gained 2.6 per cent this week despite dropping for most of it. The stock has been falling since the end of February when it announced it wasn’t the preferred bidder for the 2019 Rugby World Cup rights: it’s lost 16 per cent since then.
“Its topsy-turvy nature has been prevalent again. Every time it gets sold down it gets bid back up, on a value basis more than anything else,” McIntyre said.
Comvita gained 2.1 per cent to $7.25,
Mainfreight rose 1.7 per cent to $24.40, and
Trade Me Group advanced 1.6 per cent to $4.37.
Summerset Group Holdings gained 0.9 per cent to $6.94. Its first-quarter sales of occupation rights dropped 16 per cent but the company said it remains on track to deliver 450 new homes over 2018 as sales increase.
“Even though those unit sales originally disappointed the market, it regathered strength like the whole market through the day,” McIntyre said. “A lot of investors have looked through that result and have seen serviced apartments, which typically have a longer sale time, made up the first part of the
2018 sales number where retirement units generally wait until the second half. It’s probably a timing issue and the CEO has said it’s getting good resales and is still on track for
450. It’s shown it can still provide good solid growth.”
Tourism Holdings was the worst performer, dropping 2.1 per cent to $6. Freightways fell 1.6 per cent to $7.60.
Synlait Milk fell 1.3 per cent to $8.96, meaning it’s up 6.8 per cent for the week, while A2 Milk Co gained 0.4 per cent to $12.97, putting its weekly gain at 4.6 per cent. Both stocks recovered this week from selling last week, which came on news of increased competition for A2 from Nestle in China.