Mar­ket commentaries

Otago Daily Times - - MARKETPLACE 15 -

WELLING­TON: New Zealand shares rose yes­ter­day, sup­ported by overnight gains on Wall Street and pos­i­tive trad­ing in Aus­tralia. a2 Milk Co and Syn­lait Milk rose.

The S&P/NZX 50 in­dex rose 37.64 points, or 0.4%, to 8816.42. Within the in­dex, 27 stocks rose, seven were un­changed and 16 fell. Turnover was $130.9 mil­lion.

Sen­ti­ment got a lift when the Dow Jones In­dus­trial Av­er­age rose 0.8% and the S&P 500 lifted 0.6% on gains in the broader fi­nan­cial sec­tor. Aus­tralia’s S&P/ ASX 200 in­dex was up 0.9% af­ter the Re­serve Bank of Aus­tralia kept rates on hold at a record 1.5%.

‘‘It’s been a pos­i­tive day in re­ac­tion to off­shore firm­ness in the mar­kets. We are re­ally fol­low­ing them and we are just claw­ing back our losses from Oc­to­ber,’’ Grant Wil­liamson, a direc­tor at Hamil­ton Hindin Greene said.

A2 Milk lifted 3.5% to $10.50 af­ter fall­ing in re­cent ses­sions. Mr Wil­liamson said the lift was not driven by any spe­cific news but by buy­ing in­ter­est at these lev­els.

There seemed to be a ‘‘pretty sig­nif­i­cant turn­around’’ with buy­ers com­ing back into the mar­ket in Novem­ber, he said.

Syn­lait rose 2.9% to $8.76. Other com­pa­nies to garner buy­ing in­ter­est in­cluded Spark New Zealand, which rose 2.3% to $4.07. Kath­mandu Hold­ings added 3.2% at $2.90.

Orion Health Group was up 1.8% to $1.16. Yes­ter­day, the tech­nol­ogy com­pany raised the likely price range for its planned buy­back to $1.20 to $1.25 from $1.16 to $1.26, fol­low­ing the com­ple­tion of the sale of its Rhap­sody unit to UK pri­vate eq­uity firm Hg for $205 mil­lion.

Con­tact En­ergy added 0.9% to $5.65. Ear­lier the com­pany said its op­er­at­ing earn­ings dur­ing the past four months were ahead of last year. It gen­er­ated 3158GWh of elec­tric­ity in the four months through Oc­to­ber, about 8% more than the year be­fore. Av­er­age prices for that out­put were 55% higher at $133.42 per megawatt hour.

Gen­e­sis En­ergy added 0.2% to $2.41. Mer­cury NZ dipped 0.7% to $3.405 and Merid­ian En­ergy fell 1.4% to $3.115.

Mr Wil­liamson said gains were across the board with the ex­cep­tion of a hand­ful of stocks.

Ry­man Health­care fell 3.3% to $12.20 but he said there was no spe­cific driver be­hind the move. The same was true for SkyCity En­ter­tain­ment, which fell 3.4% to $3.72.

Z En­ergy bounced slightly af­ter sharp falls since it rat­tled in­vestors last Thurs­day with a 21% drop in first­half earn­ings and a div­i­dend about 5c less than they were ex­pect­ing. The stock added 1.9% to $5.28.

While in­vestors will be keep­ing one eye on do­mes­tic news, such as labour data to­day and the cen­tral bank’s mon­e­tary pol­icy state­ment to­mor­row, Mr Wil­liamson said the main fo­cus was off­shore.

US con­gres­sional midterm elec­tions were of par­tic­u­lar in­ter­est but tough to call, he said. Re­sults are due to­mor­row (NZ time).

The Aus­tralian share­mar­ket closed nearly 1% higher af­ter strong gains from bank­ing, en­ergy and re­sources stocks.

The bench­mark S&P/ASX200 in­dex was 57.1 points higher, or 0.98%, at 5875.2 yes­ter­day while the broader All Or­di­nar­ies rose 0.91%.

The Aus­tralian dol­lar held firm af­ter the Re­serve Bank kept the of­fi­cial cash rate at a record low of 1.5% and Gov­er­nor Philip Lowe said GDP was ex­pected to grow 3.5% in 2018 and 2019, up from 3.0%.

The Mel­bourne Cup may be the race that stops the na­tion but its cor­re­spond­ing par­tial pub­lic hol­i­day com­bined with the loom­ing US mid­term elec­tion made for a light day of trad­ing on the lo­cal in­dices, Com­mSec mar­ket an­a­lyst James Tao said.

‘‘A lot of peo­ple’s at­ten­tion is cer­tainly not on the mar­kets to­day so the light vol­ume has seen a pick up for the fi­nan­cials and re­sources,’’ he said.

‘‘There’s a bit of a hold­ing pat­tern here and glob­ally.’’

In­vestors are also likely hold­ing out for the US rates de­ci­sion com­ing later this week fol­lowed by the RBA’s state­ment on mon­e­tary pol­icy, Mr Tao told AAP.

Lo­cal en­ergy stocks were higher re­act­ing to ris­ing crude oil prices, with Wood­side Pe­tro­leum, Oil Search, San­tos, Soul Pat­tin­son, and Ori­gin, all up be­tween 0.8% and 3.9%.

Ma­jor min­ers BHP, up 1.3% to $33.55, and Rio Tinto, up 2.1% to $81.25, were buoy­ant for the re­sources sec­tor, while BlueS­cope Steel and South 32 both closed more than 1% higher.

Gold prices edged slightly lower overnight but this had lit­tle im­pact on its min­ing stocks, with Newcrest Min­ing, North­ern Star, Evo­lu­tion, St Bar­bara and OceanaGold all up be­tween 1% and 2.7%. —Busi­nessDesk/AAP

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