Market commentary

WELLINGTON: New Zealand shares rose yesterday as earnings updates from local firms and US tech companies outweighed data showing a record quarterly contraction for the US economy. Mainfreight hit a record high.

The S&P/NZX 50 Index advanced 35.61 points, or 0.3%, to 11,727.63. Within the index, 20 stocks rose, 22 fell and eight were unchanged. Turnover was $155.9 million.

The slump in the US economy has put investors on edge, as they weigh up tepid US activity for the broader economy. However, the local market managed to shake that off with optimistic trading updates from global logistics firm Mainfreight and rental campervan operator Tourism Holdings.

‘‘We are seeing some of the companies that have quietly been getting on with it really performing well today,’’ portfolio manager at Harbour Asset Management Shane Solly said.

Mainfreight shares hit a record $46.95 in early trading yesterday following a strong trading update and upbeat annual meeting on Thursday. The shares rose 7.6% to a record close of $46.90, and are up 10.5% so far this year, valuing the business at $4.27 billion.

Jarden analysts said the result was ‘‘remarkable’’ and upgraded their forecast for net profit in the March 2021 year by 25%, due to increasing revenue in Australia and NZ.

Tourism Holdings led the market higher, jumping 9.9% to $1.88 after it released a framework outline for its plan to stay cashflow positive while operating in a fully domestic environment for the 2021 financial year. The stock had been in decline since it reached $2.40 in early June, after recovering from a sharp slump in March.

The campervan rental company plans to shrink its fleet by 30% to keep cash in the coffers.

‘‘That was a bit of a surprise. Investors have been anticipating them to continue to see tough times and potentially have to raise new equity capital,’’ Mr Solly said.

‘‘Being cashflow positive in 2021 means they might not have to do that.’’

Auckland International Airport rose 2.6% to $6.38 and Air New Zealand increased 0.8% to $1.34.

Genesis Energy was up 2.7% at $2.91, Meridian Energy gained 1.5% to $4.86 and Mercury NZ rose 1% to $4.67.

Fisher & Paykel Healthcare increased 1.3% to $36. Meanwhile, a2 Milk Company fell 3.1% to $20.84, following a wider decline on Australia’s S&P/ASX 200 Index.

Vista Group International posted the day’s biggest decline, down 4.5% at $1.28, and SkyCity Entertainment Group fell 3.1% to $2.49.

ANZ Banking Group fell 1.5% to $19.50 and Westpac Banking Corp fell 2.9% to $18.46. — BusinessDesk