Market commentary
WELLINGTON: Network operator Chorus yesterday sustained its climb to alltime highs during a quiet and steady day on the New Zealand sharemarket.
The S&P/NZX50 Index gained 35.13 points or 0.3% to 11,859.45 on light volume of 72.14 million shares worth $125.48 million. There were 76 gainers and 51 decliners over the whole market.
Chorus, which has built 70% of the country’s fibre optic network for ultrafast broadband, climbed 30c or 3.61% to $8.60. Chorus started the year at $6.30 and has risen more than 30%, reaching a high of $8.67 on August 26.
Jeremy Sullivan, investment adviser with Hamilton Hindin Greene, said with more people working from home, internet traffic had increased by 30% to 40%.
‘‘Chorus has had a good run in the last 12 months and it’s continuing its march onwards.’’
Online travel provider Serko was the day’s big mover after news it will join the S&P/NZX 50 Index on September 21, replacing New Zealand Refining Company. Serko’s share price surged 33c or 8.40% to $4.26.
Sky Network Television had an earnings upgrade from Macquarie Bank and its share price rose 8c or 5.76% to 14.7c. Sky TV is announcing its latest financial result on Thursday.
Market heavyweights had flat days. Fisher and Paykel Healthcare was up 5c to $34.30 after having a late fall on total trade worth $7.18 million, and a2 Milk edged ahead 3c to $18.30 on trade worth $13.8 million. Mainfreight gained 15c to $47.25 and fishing company Sanford was up 7c to $5.82.
Energy companies Mercury and Meridian were also ahead 2.5c to $4.97 and 6c to $5.25 respectively. Recovery stocks, clothing retailer Hallenstein Glasson Holdings gained 14c or 3.23% to $4.48; and cinema software company Vista Group gained 7c or 3.85% to $1.89, having climbed more than 30% in August.
Fast food operator Restaurant Brands was down 24c to $12.06. Kiwi buy now, pay later online firm Laybuy had a strong debut on the Australian stock exchange, rushing to $A2.30 ($2.50) before falling to $A2.09 at 5.45pm after issuing shares at $A1.41 each. There was strong investor interest with 15.2 million shares traded.
Port of Tauranga’s chief executive Mark Cairns announced he would be retiring in June next year after more than 15 years in the role. Mr Cairns has overseen considerable growth in the port business, with total cargo increasing from 12.6 million tonnes in 2005 to 24.8 million tonnes in the past financial year, and TEUs (20foot container units) from 438,214 to 1.25 million last year. Port of Tauranga’s share price slipped 6c to $7.31.
Embattled Tourism Holdings is selling 1000 motorhomes to the value of more than $70 million to pay off debt and it has established a popup rentals branch near Auckland airport after the fire at its Mangere facility. Tourism Holdings’ share price slipped 2c to $2.14.
SMW Group (formerly Aorere Resources) moved 42c or 35.59% to $1.60 on just three trades worth $3000. —