Mar­ket com­men­taries

Otago Daily Times - - MARKETPLACE -

NEW Zealand shares rose yesterday as mar­kets across Asia ral­lied on spec­u­la­tion the US Fed­eral Re­serve Bank will keep in­ter­est rates on hold next year, which would main­tain the yield at­trac­tion of stocks over bonds. Spark New Zealand was up in heavy trad­ing.

The S&P/NZX 50 in­dex in­creased 9.1 points, or 0.1%, to 8767.32. Within the in­dex, 21 stocks rose, 24 fell and five were un­changed. Turnover was $129.3 mil­lion, of which Spark con­trib­uted $28.1 mil­lion.

Stocks across Asia were mod­estly higher in af­ter­noon trad­ing, with Aus­tralia’s S&P/ASX 200 up 0.4%, Hong Kong’s Hang Seng gain­ing 0.2% and Ja­pan’s Topix ris­ing 0.5%. A re­port by the Wall

Street Jour­nal that the Fed will hike rates this month and then adopt a more cau­tious ap­proach was wel­comed by in­vestors, who saw it as a sign that the in­ter­est rate track will be flat­ter than cur­rent ex­pec­ta­tions. Ris­ing in­ter­est rates re­duce de­mand for stocks as in­vestors can lock in a higher re­turn from in­ter­est­bear­ing in­vest­ments.

Peter McIn­tyre, an in­vest­ment ad­viser at Craigs In­vest­ment Partners, said flat in­ter­est rates next year should sup­port global growth, which would make it eas­ier for firms to main­tain or in­crease earn­ings.

Spark rose 0.4% to $4.20 on more than twice its av­er­age vol­ume at 6.7 mil­lion shares traded. Mr McIn­tyre said Spark was well­liked by in­ter­na­tional in­vestors be­cause of its at­trac­tive div­i­dend yield — al­most 6.8% — and liq­uid­ity.

Among other stocks held for their div­i­dend, Ar­gosy Prop­erty rose 0.9% to $1.16 and In­ve­store Prop­erty in­creased 0.7% to $1.52, both on light vol­umes.

Cho­rus was 0.4% higher at $4.77 on very light vol­umes. The telecom­mu­ni­ca­tions net­work oper­a­tor’s $500 mil­lion of 10­year bonds started trad­ing yesterday. About 1.7 mil­lion traded on the first day at a yield of 4.15%.

Z En­ergy led the mar­ket higher, up 2.5% at $5.70 on slightly smaller vol­umes than av­er­age. The trans­port fu­els com­pany wel­comed a Gov­ern­ment in­quiry into the fail­ure of the fuel pipe­line from the re­fin­ery to Auck­land last year, re­it­er­at­ing its con­cerns about the lack of re­silience in Auck­land’s sup­ply chain. New Zealand Re­fin­ing fell 0.9% to $2.26.

Merid­ian En­ergy fell 1.2% to $3.26, Con­tact En­ergy slipped 0.7% to $5.72, and Fletcher Build­ing was down 0.4% at $4.72, all on larger vol­umes than nor­mal.

Fisher & Paykel Health­care fell 9cs to $12.38 af­ter shed­ding rights to a 9.75c­per­share in­terim div­i­dend.

A2 Milk rose 2.4% to $11.02 on mod­est vol­umes, while Syn­lait Milk de­creased 0.6% to $9.35.

Gen­track was the worst per­former, down 2.87% at $5.30, and Sky Net­work Tele­vi­sion de­clined 2.6% to $2.27, both on smaller vol­umes than usual.

Out­side the benchmark in­dex, Hal­len­stein Glas­son dropped 35 cents to $4.85 af­ter shed­ding rights to a 24 cents per share div­i­dend. Green Cross Health will shed rights to a 3.5 cents per share div­i­dend on Mon­day, and was down 8 cents at $1.20 yesterday.

The Aus­tralian share­mar­ket has held on to its broad­based gain yesterday, with bank­ing and en­ergy stocks buoy­ant at noon.

The benchmark S&P/ASX200 in­dex climbed 39.7 points, or 0.7%, to 5697.4 at 1200 AEDT yesterday, while the broader All Or­di­nar­ies rose 0.6%.

US eco­nomic con­cerns, as well as the ten­ta­tive trade stale­mate be­tween the coun­try and China, were ex­pected to weigh on the lo­cal mar­ket at the open but the fi­nan­cial and health­care sec­tors climbed into noon.

Com­mon­wealth Bank had the strong­est rise of the big four lenders, up 1.2% at $A70.49 ($NZ74), and ANZ the least, ris­ing 0.7% to $A25.86. Mac­quarie Group climbed 2% to $A114.30. Be­lea­guered wealth man­ager IOOF Hold­ings was a rare spot of red on the benchmark, drop­ping more than 30% to $A4.84 af­ter the pru­den­tial reg­u­la­tor moved to dis­qual­ify its top brass and im­pose new li­cense con­di­tions af­ter al­le­ga­tions of wrong­do­ing.

Biotech gi­ant CSL ex­tended ear­lier gains, ris­ing 2.8% to $A184.22, with the health­care sec­tor also sup­ported by ResMed and Cochlear.

Ma­te­ri­als was the only sec­tor to lose ground dur­ing the morn­ing’s trade, dragged down by South32, which fell nearly 1% to $A3.09, and Fortes­cue, down 0.5% at $A4.03.

Gi­ants BHP and Rio Tinto were down 0.2% and 0.1% re­spec­tively, while BlueS­cope bucked the sec­tor’s trend and was 1.1% higher at $A11.99.

Adelaide Brighton was down more than 9% at $A4.84 af­ter down­grad­ing its profit fore­cast.

The Aussie dol­lar rose, buy­ing US72.31c from US72.22c on Thurs­day. — Busi­ness­Desk/AAP

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.