Market commentaries

WELLINGTON: New Zealand shares have gained, led by Scales Corp and A2 Milk Co, while Sky Network Television dropped again.

The S&P/NZX50 Index increased 39.17 points, or 0.5%, to 8323.75.

Within the index, 27 stocks rose, 14 fell and nine were unchanged. Turnover was $194 million.

Scales Corp led the index, up 4.1% to $4.53. Last week, the company said it expects fullyear earnings to be at the upper end of guidance on the performance of its horticulture division and new acquisitions, and earnings will rise in 2018.

‘‘They gave a good set of 2017 numbers and the brief 2018 update they gave was pretty positive, and there’s confidence in the management,’’ Craigs Investment Partners adviser Peter McIntyre said.

A2 Milk Co rose 2.2% to $7.94. Managing director Geoff Babidge will retire next year and will be replaced by Jetstar chief Jayne Hrdlicka.

Mr Babidge has been in the role since 2010, and in the past two years A2’s share price has jumped from about $1 at the end of 2015 to a recent record $8.75.

The shares have soared on the back of successive strong sales, with the company’s infant formula attracting strong demand in China.

‘‘A2’s a marketing company, it’s a company of momentum, and I think they’ve chosen her on the basis that she’s able to keep that marketing going,’’ Mr McIntyre said.

Restaurant Brands New Zealand gained 1% to $7 after it said thirdquarter sales jumped 45%.

‘‘The acquisitions they’ve made have been well planned and executed, they’ve been earnings accretive,’’ Mr McIntyre said.

‘‘They’ve been able to maintain a pretty good rate of momentum, I think that’s going to carry on for the next 12 to 24 months so the likelihood for the stock is it is going to be rerated by analysts at some stage.’’

Property for Industry gained 0.6% to $1.645. It raised annual earnings guidance as the industrial real estate investor benefited from stronger leasing since its halfyear result.

Sky Network Television was the worst performer, down 3.8% to $2.57, while NZX dropped 2.7% to $1.09 and CBL fell 1.3% to $3.03.

Outside the benchmark index, New Zealand Oil & Gas dipped 0.7% to 71c.

Chairman Rodger Finlay and director Duncan Saville have resigned following the announcement OG Oil & Gas has received approval from the Overseas Investment Office for a partial takeover of NZOG.

A The Australian sharemarket lost ground as gains for materials and energy companies were offset by falls in the utilities and property trust sectors, and the Australian dollar has been boosted by strong jobs growth.

The benchmark S&P/ASX200 index was down 10.5 points, or 0.17% at 6011.3 points, with low turnover suggesting traders were holding on to gains ahead of Christmas.

The broader All Ordinaries index was down 6.7 points, or 0.11%, at 6096.4 points. National turnover was 3.1 billion securities traded worth $A7.1 billion.

Citi director of equities sales Karen Jorritsma said market sentiment remained cautiously optimistic and shares were largely unaffected by the overnight US rate hike that had been long discussed and well priced in.

‘‘With the market holding through 6000 points, I’d argue it’s still grinding higher as investors look to lock up profits ahead of a 2018 that’s already been marked by some pretty bullish offshore sentiment,’’ Ms Jorritsma said. — BusinessDesk/AAP