Market commentaries
AUCKLAND: New Zealand shares rose, led by Restaurant Brands New Zealand, while Tourism Holdings and Fisher & Paykel Healthcare hit record highs.
The S&P/NZX 50 Index gained 60.96 points, or 0.8%, to 7685.45. Within the index, 35 stocks rose, eight fell and seven were unchanged. Turnover was $134.9 million.
James Smalley, director at Hamilton Hindin Greene, said the market had seen broadbased buying, with the benchmark index near record levels, though volumes were lower yesterday. Restaurant Brands led the index, up 3% to $6.14, while Kathmandu Holdings gained 3% to $2.06 and Sky Network Television rose 2.9% to $3.53. Tourism Holdings rose 2.2% to $4.20.
F&P Healthcare gained 1.5% to $11.57, a record. Metro Performance Glass was the worst performer, down 0.7% to $1.36. Kiwi Property Group fell 0.7% to $1.41 and A2 Milk Co dipped 0.5% to $4.03.
Outside the benchmark index, Trilogy International gained 19.5% to $2.45. The scented candle and beauty products maker, which is grappling with rising raw material costs, will spend $13.8 million buying control of smaller rival Lanocorp, whose suite of beauty products include Lanocreme, By Nature and Tiaki.
Trilogy lifted annual earnings 19% to $19.4 million in the year through March 31 with a full year’s contribution from distributor CS & Co and stronger sales from its beauty product range offsetting more expensive raw materials. Those rising costs are expected to continue, although Trilogy has previously said it expected earnings to keep growing in the 2018 financial year.
Market regulator NZX suspended GeoOp’s shares on the NZAX at 22c until a special meeting in July. The unprofitable management app developer will ask shareholders to vote on its plan to delist from the NZAX and list on the ASX with an initial public offering in Australia and New Zealand.
The Australian sharemarket has been boosted by strong gains by the banks, miners and energy companies, and the Australian dollar is at a threemonth high. The benchmark S&P/ASX200 stock index gained 62.4 points, or 1.08%, to 5818.1 points, as the financial sector rose by 1.6%, the mining sector jumped more than 2% and the energy sector was almost 2% stronger.
The broader All Ordinaries index was up 59.8 points, or 1.03%, at 5855.9 points. The September SPI200 futures contract was up 59.8 points, or 1.03%, at 5855.9 points.
National turnover of 2.6 billion securities traded worth $6.8 billion.
A bounce by US financial stocks drove the rally for the local banks, while higher iron ore and oil prices bolstered mining and energy stocks, Patersons Securities economist Tony Farnham said.
‘‘The banks, materials and energy are our three major sectors so if they power ahead so does the index,’’ he said.
‘‘Because the financials were the best performing sector in the US last night that positivity has washed across to our banks even though the reason for the US banks’ rally is not relevant to our banks.’’
Several big US lenders released plans to increase dividends and share buybacks after passing the Federal Reserve’s annual stress test.
ANZ, National Australia Bank and Westpac each gained more than 2%, while Commonwealth Bank rose 1.6%.
Rio Tinto rose 3.3%, adding $2.05 to $63.39, after its shareholders backed Yancoal’s $US2.69 billion bid for the mining giant’s NSW coal operations.
BHP rose 2.6% and Fortescue Metals gained 2.8%.
Oil Search jumped 4.6%, Santos gained nearly 3% and Woodside Petroleum rose 1.7%.
The Australian dollar hit a threemonth high of US76.67c, buoyed by stronger commodity prices.
The broader All Ordinaries index was up 59.8 points, or 1.03%, at 5855.9 points.
The September SPI 200 futures contract was up 59.8 points, or 1.03%, at 5855.9 points.
National turnover was 2.6 billion securities traded worth $6.8 billion.