Market commentary

WELLINGTON: Telecommunications network operator Chorus had its day in the sun, hitting an all time high on news that it will be joining the Australian stock exchange’s leading index. The New Zealand sharemarket responded with a slight rise.

The S&P/NZX 50 Index gained 36.17 points, or 0.31% — the same as the previous day — to 11,906.50.

Chorus, which has surged 33% this year, made a 45c, or 5.23%, gain on trade worth $2 million. Its share price finished at $9.05, breezing past its previous high of $8.67 achieved on August 26.

Index creator Standard and Poor’s said more Chorus shares were traded in Australia than New Zealand and it would join the S&P/ASX 200 Index on September 18 — along with other duallisted stocks Fisher and Paykel Healthcare, a2 Milk, Spark, Fletcher Building and SkyCity.

Asked if Chorus would like to be referred as an Australian stock, JBWere head of investment strategy group Rickey Ward said, ‘‘I don’t think so, but they do like the benefit of people showing an interest in them. Chorus has believed they should be worth more, and S&P is making them an Aussie stock for the purpose of recalculating the index. Chorus will still be domiciled in New Zealand, mind you.’’

SkyCity is making a strong rally, up 11c, or 3.86%, to $2.96. Serko gained 8c to $4.34, Mainfreight increased 75c to $48, Auckland International Airport went up 8c to $7.10, and Fisher & Paykel Healthcare fell 50c to $33.80.

Briscoe rose 10c or 2.67% to $3.84 after reporting a solid halfyear financial result. Its net profit slipped 1.3% from $28.35 million to $27.98 million on revenue of $292.4 million, down 3.5% — even though its homeware and sporting goods stores were closed for 50 days during the six months ending July. Online sales grew nearly 100% in that period. Briscoe is paying an interim dividend of 9c on October 1.

Fletcher Building, which has been climbing steadily lately, gained 9c, or 2.44%, to $3.78. Major Australian shareholder Perpetual Ltd is still pushing the line that Fletcher should sell all its operations in Australia to get better value for its business and share price.

Restaurant Brands has had a tough time. Net profit for the halfyear to June fell nearly 43% from $20 million to $11.4 million on revenue of $383.4 million, down 13.4%.

Sky Network Television was yesterday’s biggest mover, climbing 1.4c, or 9.5%, to 16.1c ahead of its Thursday results announcement.

Mr Ward said most people believed Sky TV was back on track.

‘‘We will hear more soon. Their subscriptions appear to be strong with more people being at home during the lockdown.’’ —