Market commentaries

AUCKLAND: New Zealand shares rose for a fourth day in five as improving sentiment in global markets encouraged investors back into some favoured sectors.

The S&P/NZX index advanced 91.52 points, or 1.1%, to 8843.83. Within the index, 31 stocks gained, 12 fell and seven were unchanged. Turnover was $134.2 million.

David Price, director of institutional equities at Forsyth Barr, said the latest round of annual meetings and September earnings were providing some direction for investors.

But he said that, despite 16 down sessions out of 21 trading days in October, priceearnings ratios were ‘‘still pretty high’’ given growth rates were ‘‘relatively anaemic.’’

Among the major gainers, a2 Milk Co rose 2.7% to $10.70. Synlait Milk rose for a third day from a sevenmonth low, gaining 0.9% to $8.75 yesterday. Ryman Healthcare rose 6.2% to $12.85.

Fletcher Building fell 1.3% to $5.96 after reporting a noncash loss of up to $20 million on the $US39 million

($NZ59 million) sale of the firm’s steel roof tile business to Canada’s IKO group. Mr Price said the sales price achieved was better than many would have expected.

Homeware and sporting goods retailer Briscoe Group rose 0.3% to $3.35. The firm’s thirdquarter sales rose 2.6% to $129.4 million, or 1.4% on a samestore basis. Gross profit margins also improved despite subdued consumer confidence and higher pump prices.

Kathmandu Holdings rose 7.1% to $2.87. The outdoor equipment retailer had had a ‘‘reprieve’’ in recent days after steady selling by a large holder, Mr Price said.

Air New Zealand rose 5.7% to $2.96. The company reported 6% September passenger growth on Wednesday.

Tourism Holdings fell 1.6% to $4.92. Investors at the company’s annual meeting on Wednesday were wary of the firm’s plans to sell out of many of its local tourism activities and invest $15 million in its TH2Connect joint venture with US RV maker Thor.

Precinct Properties New Zealand fell 0.4% to $1.405. The 2.5 million shares traded yesterday was about three times the 90day daily average. The company is going ahead with the second stage of its Wynyard Quarter development on an uncommitted basis.

Auckland International Airport rose 1% to $7.06. The Commerce Commission yesterday said the $1.8 billion the firm planned to spend on infrastructure during the next five years might overrecover $37 million. The regulator stopped short of calling the proposed 7.06% return excessive.

Among other companies with volumes of more than 1 million, Meridian Energy rose 0.5% to $3.15, Spark New Zealand rose 0.9% to $3.985, Goodman Property Trust was unchanged at $1.50, as was Kiwi Property Trust at $1.315.

On the first day of November the Australian share market drew inspiration from the spring carnival — it jumped, fell behind but sensed the winning post and surged clear to close higher, lifted by banking and mining stocks.

The benchmark S&P/ASX200 index closed 10.5 points, or 0.18%, higher at 5840.8 yesterday, while the broader All Ordinaries was up 0.21%.

The financial sector was flat despite NAB being the only major lender in the black, rising 0.6% to $25.35 on positive news within the announcement of a 14.2% drop in fullyear profit due to restructuring costs and customer remediation.

Commonwealth Bank, Westpac and ANZ were all down between 0.3% and 0.7%. — BusinessDesk/AAP

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