Market commentary

WELLINGTON: The changing fortunes of two longtime favourites, Fisher and Paykel Healthcare and a2 Milk, continue to affect the New Zealand sharemarket, which impressively gained more than 1%.

The S&P/NZX 50 Index had a late surge, rising 137.70 points, or 1.10%, to 12,656.42 moving up from an intraday low. There were 78 gainers and 61 decliners over the whole market, with 53 million shares worth $211.1 million changing hands.

With the renewable energy stocks Contact and Meridian, Fisher and Paykel and a2 Milk have been the most volatile stocks lately and this time they had positive days.

Fisher and Paykel Healthcare rose $1.22, or 3.79%, to $33.39. The a2 Milk Company gained 32c, or 3.73%, to $8.89 after reaching a low of $8.36 last week, a long distance from its high of $21.50 in midAugust last year.

Dan Stratful, investment adviser with Forsyth Barr, said Fisher and Paykel was one of the most liquid stocks on the market and fund managers could move money around day to day if they needed to.

‘‘There’s so much KiwiSaver money flowing in each month and some of that will find its way to Fisher and Paykel,’’ he said.

‘‘I wouldn’t be surprised if the a2 Milk share price has bottomed out, and there is buying interest in the stock ahead of a pickup in the daigou channel.’’

Contact Energy and Meridian again led the individual trading by value. Contact climbed 22c or 3.22% to $7.37 and Meridian gained 17c or 3.02% to $5.79.

Mercury increased 5c to $6.80; Genesis Energy was up 7c or 2.11% to $3.38; and Trustpower rose 3c to $8.52.

Retirement village operators Ryman Healthcare increased 13c to $15, and Summerset Group Holdings gained 5c to $12.05. Restaurant Brands climbed 19c to $13.20; Pacific Edge picked up 4c or 3.48% to $1.19; and My Food Bag collected 3c or 1.86% to $1.64. Comvita increased 14c or 4.39% to $3.33.

Among the decliners, Freightways was down 8c to $11.22; Pushpay Holdings fell 4c or 2.03% to $193; Fletcher Building fell 6c to $7.11; Infratil shed 8.5c to $6.895; Evolve Education lost 3c or 2.31% to $1.27; and Smartpay decreased 3c or 3.09% to 94c. Scott Technology slipped 2c to $2.50.

Fitch revised the outlook of Westpac and ANZ’s longterm issuer default rating from negative to stable. ANZ increased 10c to $31.25, but Westpac was down 5c to $27.33. — The New

Zealand Herald