Market commentary
AUCKLAND: New Zealand shares rallied yesterday, with more volume through politicallydriven sectors as the September election draws closer. A2 Milk Co rallied to another record, while Xero gave back some gains.
The S&P/NZX50 Index rose 25.45 points, or 0.3%, to 7771.57. Within the index, 27 stocks rose, 14 fell and nine were unchanged. Turnover was $160 million.
Jacinda Ardern became leader of the Labour Party on Tuesday, taking over from Andrew Little, and the positive reaction to her ascent has been dubbed the ‘‘Jacinda Effect’’.
‘‘Everyone’s just positioning themselves for the results. You’ve seen reasonable volumes in the leaders again .
‘‘Perhaps I’m drawing a long bow, but it could be the ‘‘Jacinda Effect’’,’’ Rickey Ward, at JBWere, said.
‘‘Markets are potentially looking at some sectors — carbon, construction, electricity. A week or so ago, people were dismissing a potential change in government, and perhaps that’s changed with Jacinda. It has focused people back on some of the potential policy they might campaign on.’’
Fletcher Building gained 0.9% to $7.95, while Metro Performance Glass gained 0.7% to $1.44. Chorus gained 0.5% to $4.48, while Contact Energy dropped 0.6% to $5.34 and Genesis Energy fell 0.4% to $2.43.
A2 Milk was the best performer, up 3% to $4.80, its second consecutive record. On Friday, the milk marketer released a statement, in conjunction with Synlait Milk, saying the two were confident with the progress of their application to export a2 Platinum infant formula to China from next January. Sales of the formula comprise about 8% of A2’s total infant formula sales.
‘‘It’s a standout story, no doubt about it,’’ Mr Ward said.
‘‘Most analysts have come out believing they can extend their Chinese success to other parts of the world. There’s a lot of support for it.’’
Xero was the worst performer, down 1.2% to $27.02. The stock has gained 56% this year amid positive earnings, but has fallen back over the past two sessions after reaching a threeyear high on Friday.
Spark New Zealand dropped 0.8% to $3.84 and Z Energy fell 0.8% to $7.83.
The Australian sharemarket closed higher after the embattled Commonwealth Bank regained some lost ground, prices for iron ore and oil lifted, and betterthanexpected jobs data out of the United States boosted Wall Street over the weekend.
The benchmark S&P/ASX200 was up 53 points, or 0.93%, at 5773.6 points, while the broader All Ordinaries index was up 51.2 points, or 0.89% at 5824.5 points. National turnover was 2.5 billion securities traded worth $A4.3 billion. — BusinessDesk/AAP