Market commentary

WELLINGTON: New Zealand shares rose yesterday, joining a regional rally, as investors predict whether an upcoming MSCI index review will spur major activity next week.

Fletcher Building, which could exit the index, gained, while new addition a2 Milk Co fell.

The S&P/NZX 50 index gained 6.65 points to 8594.59. Within the index, 29 stocks rose, 12 fell and nine were unchanged. Turnover was $132 million.

Investors are waiting to see the outcome of upcoming MSCI index changes after the rapid ascent of a2 Milk to claim the title as New Zealand’s biggest listed company and the decline of longstanding bluechip stock Fletcher Building.

Brokers anticipate next week’s reweighting will lead to a busier day than the previous review when about $1.1 billion of Contact Energy and Fisher & Paykel Healthcare shares changed hands.

A2 fell 3.2% to $12.75, yesterday’s biggest decline, while Fletcher led the bourse higher, up 3.7% to $6.53.

‘‘If a2 is included, which is what most people predict, then we’re talking probably the largest daily traded volume that’s going to occur at the end of May than we’ve ever seen before,’’ Rickey Ward, NZ equity manager at JBWere in Auckland, said.

Next week, Fletcher would also hold the shortfall bookbuild for any shares not taken up by retail investors in a discounted share issue, and Mr Ward said people were ‘‘preparing themselves to back into that bookbuild’’. The shortfall bookbuild priced Fletcher shares at $6.15.

Among other gainers, Scales Corp rose 1.9% to $4.75 and Trade Me Group advanced 1.3% to $4.80.

Port of Tauranga gained 1.2% to $5.16 after a Westpac Banking Corp regional economy report said increased March quarter volumes going through the port underpinned upbeat economic confidence in the Bay of Plenty.

Te Pukebased Comvita rose 1.9% to $7.10, and Taurangabased Trustpower was up 0.5% to $5.87.

Property For Industry rose 0.9% to $1.67 after it declared an increased firstquarter dividend of 1.8c a share.

Other stocks that fell included Air New Zealand, down 1.4% to $3.285, Kathmandu Holdings, down 1.1% to $2.64, and Fisher & Paykel Healthcare, down 0.7% to $12.70.

Metro Performance Glass fell 3.4% to 85c after First NZ Capital downgraded its rating.

Duallisted banks Australia & New Zealand Banking Group rose 1.2% to $29.99 and Westpac Banking Corp gained 0.8% to $31.90, after the sector fell out of favour in the wake of a Royal Commission in Australia. AMP fell 0.5% to $4.39 after three directors chose to step down from the board before the annual meeting in Melbourne.

Among bluechip stocks, Auckland International Airport rose 1.1% to $6.55, Meridian Energy gained 0.5% to $2.965, and Spark New Zealand slipped 0.4% to $3.515.

In Australia, the benchmark S&P/ASX200 closed up 7.40 points (0.12%) at 6091.90 points, while the broader All Ordinaries was up 7.60 points (0.12%) at 6183.20. — BusinessDesk