Market commentaries

WELLINGTON: New Zealand shares continued to march higher as investors remained cautiously buoyed by the reopening of the economy and the virus outbreak passing. Vista Group International led the market higher.

The S&P/NZX Index increased 58.38 points, or 0.5%, to 10,818.67. Within the index, 25 stocks rose, 22 fell, and three were unchanged. Turnover was $200.7 million.

Trading on the NZX was choppy and in negative territory for much of the session, as investors continued to grapple with economic life returning to a new normal.

Grant Davies, an investment adviser at Hamilton Hindin Greene, said the stocks most affected by the virus were moving in different directions as they adapted to new conditions.

``It's mixed trading, with ‘covid stocks' going in all directions,'' he said. For example, rental camper van operator Tourism Holdings was up 1.2% at $1.68, whereas Air New Zealand dropped 3.5% to $1.225.

The benchmark index closed higher, holding its own, while Australia's market remained under pressure amid brewing tensions between Australia and China.

Vista led the local market higher, up 7.4% at $1.45 as investors anticipated cinemas reopening around the world.

Companies offering reliable dividends were also in demand as the prospect of negative interest rates discourages investors from buying bonds.

Meridian Energy increased 4.3% to $4.965, Vector rose 2.8% to $3.69, Contact Energy advanced 1.4% to $6.35 and Genesis Energy rose 0.7% to $2.90.

Property companies were in favour for the same reason, with Precinct Properties New Zealand up 3.6% at $1.58, Goodman Property Trust rising 3.4% to $2.315 and Property for Industry advancing 2% to $2.28.

Z Energy rose 1.3% to $3.18 when it resumed trading after raising $290 million at a discounted price of $2.90.

Spark New Zealand rose 1% to $4.69 after announcing it had been allocated the first portion of the spectrum band for the 5G network. Fixedline network operator Chorus increased 0.3% to $7.19.

Duallisted lenders were among the day's weakest performers. Westpac Banking Corp dropped 4% to $16.18, the biggest decline on the day, while Australia & New Zealand Banking Group fell 3.2% to $16.51.

The Australian sharemarket gave up most of Monday's gains, as it continued to trade in a fairly tight range.

The S&P/ASX200 index closed yesterday down 58.2 points at 5403 points, while the All Ordinaries index finished 61.8 points lower at 5497.3. — BusinessDesk/AAP