Shares gain as earnings season takes a breather

New Zealand shares rose as investors took stock in a brief lull in the domestic corporate earnings season, with Skellerup Holdings extending Thursday’s gain to break a new record.

The S&P/NZX 50 index advanced 53.86 points, or 0.6 per cent to 9052.77, the highest since July 10. Within the index, 32 stocks gained, eight fell, and 10 were unchanged. Turnover was $96.3 million.

Earnings season took a breather yesterday ahead of reporting days next Wednesday and Thursday. Local investors took the opportunity to digest the early starters, such as Skellerup’s record profit on Thursday. The shares rose 4.8 per cent to a record $2.19, adding to yesterday’s 4 per cent gain. Among other companies to have already reported, SkyCity Entertainment Group increased 1 per cent to $4.19, Freightways gained 0.5 per cent to $7.58, Contact Energy slipped 0.2 per cent to $5.80, Precinct Properties New Zealand was unchanged at $1.415, while Summerset Group Holdings declined 0.9 per cent to $7.50.

“It is the calm before the storm — next Wednesday we’ve got an enormous day of market cap reporting,” said Nikko Asset Management head of equities Stuart Williams. “Anyone who’s disappointing in this result or in terms of their future guidance is getting absolutely slammed, so there’s little room for disappointment.”

Blue chip stocks underpinned the day’s wider gain. Ryman Healthcare rose 3.7 per cent to $13.35, Air New Zealand increased

1.5 per cent to $3.37, Mainfreight advanced

1.3 per cent to $28.15, Spark New Zealand gained 0.9 per cent to $3.96 and Auckland International Airport was up 0.8 per cent to $6.865. Mercury NZ, which reports next Tuesday, yesterday announced a pilot subscription service letting people rent a range of electric vehicles on a monthly basis. Its shares rose 0.3 per cent to $3.38. Meridian Energy reports next Wednesday and was up 1 per cent to $3.17 yesterday, while Genesis Energy, which reports near the end of the month, gained 0.2 per cent to $2.555.

Tourism Holdings fell 0.5 per cent to $6.04 after saying chief financial officer Mark Davis was on a leave of absence for health reasons and won’t be back until next month.

Pushpay Holdings posted the largest decline, falling 1.1 per cent to $3.64. Arvida Group slipped 0.7 per cent to $1.34 and Fisher & Paykel Healthcare dropped 0.4 per cent to $14.90.

NZAX-listed Geneva Finance was unchanged at 60c after agreeing to buy a 60 per cent stake in Federal Pacific Finance, Tonga for $3.8m in cash and shares. The shares component will be issued at 70c each, a premium which managing director David O’Connell said “more accurately reflects Geneva’s underlying value”.