Shares end trading month on a buoyant note

The S&P/NZX 50 index rose 4.9 per cent in November as retirement village operators were boosted by potential merger and acquisition activity and a2 Milk mounted a comeback on strong earnings guidance.

The benchmark index rose 109.29 points, or 1 per cent, to 11,316.58 yesterday.

Within the index, 24 stocks gained, 17 fell and nine were unchanged. Turnover was $199.6 million.

Meridian Energy led the market higher, up 4.1 per cent at $4.71. The country’s biggest electricity generator was the most traded stock on a volume of 3.3 million shares, more than its 90-day average of 1.9 million.

Energy Minister Megan Woods has directed officials to give her advice on material from Rio Tinto on how to reduce energy costs at the Tiwai Point smelter.

Contact Energy, which also has significant South Island generation assets, rose 1.6 per cent to $7.17 on a volume of 1.5 million shares, while Mercury NZ was up 1.7 per cent at $4.80 on a volume of 3 million, Genesis Energy rose 1.6 per cent to $3.20 and Trustpower advanced 2.8 per cent to $7.29.

Goodson said the local market continued to outperform most benchmark indices across Asia. The NZX50 has been the pick of the regional markets so far this year, up about 28 per cent.

Metlifecare posted the biggest gain in November, up 21 per cent. It was unchanged at $5.84 on the day. The retirement village operator this week hired Jarden to advise it in takeover negotiations with a “credible” buyer.

The prospect of a takeover helped buoy other retirement village operators, with Ryman Healthcare up 20 per cent in November and Summerset Group advancing 17 per cent. Ryman was up 0.6 per cent at $15.10 yesterday, while Summerset slipped 0.1 per cent to $7.70.

rose 2.1 per cent to $15.52, taking its increase in the month to 20 per cent. The milk marketing firm upgraded its earnings guidance at this month’s annual meeting, which Goodson said forced investors holding short positions — where they anticipate the stock will fall — to cover their positions by buying shares.

Fisher & Paykel Healthcare rose 3 per cent to $22.15, taking its November gain to 16 per cent. The breathing-mask manufacturer reported a 24 per cent increase in first-half profit this week, which Goodson said was solid, but in line with expectations.

Among other stocks trading on volumes of more than a million shares, Spark NZ fell

0.4 per cent to $4.54, Auckland International Airport dropped 1 per cent to $9.03, Sky Network Television rose 1.2 per cent to

85c, Goodman Property Trust was unchanged at $2.135 and Oceania Healthcare was up 0.9 per cent at $1.08.