Market commentary

WELLINGTON: Shutting the transtasman travel bubble for at least two months put the dampener on leisure stocks, but the New Zealand sharemarket again remained resilient to the latest Covid developments.

The S&P/NZX 50 Index was up 15.47 points or 0.12% to 12,736.32, after reaching an intraday low of 12,690.05. The index picked up almost 0.5% for the week while neighbour Australia battled to control the fresh outbreaks of the Covid virus caused by the Delta variant.

There were 62 gainers and 68 decliners across the whole market, with 56.28 million shares worth $162.14 million changing hands.

Greg Smith, head of research with Fat Prophets, said closing the transtasman bubble was a blow to the tourism industry and it looked like the lockdowns in Australia could be extended.

‘‘It could be months instead of weeks. It’s a reminder that dealing with the Delta variant has changed the landscape. The markets have been pretty resilient, including New Zealand — that’s because of the ongoing support for the central banks and the United States’ earnings season has gone well.

‘‘Mind you, the New Zealand Reserve Bank will likely raise its official cash rate next month and we’ve already seen some banks increase their lending rates. It will be interesting to see what happens to the consumer stocks if people start to pinch on their spending,’’ Mr Smith said.

Auckland International Airport fell 15c or 2.05% to $7.15; Air New Zealand was down 2c to $1.505; SkyCity Entertainment lost 5c to $3.23; and Tourism Holdings declined 4c to $2.38.

Air New Zealand told the market the suspension was expected to have a shortterm operational and financial impact on its business until such time the air travel bubble for New Zealanders’ travel reopens.

Covid beneficiary Fisher and Paykel Healthcare rose $1 or 3.16% to $32.65; Spark gained 6c to $4.83; Sanford climbed 11c or 2.3% to $4.89; and Turners Automotive was up 5c to $4.28.

Among the energy companies, Contact rose 11c to $8.37; Meridian was down 6.5c to $5.28; and Mercury fell 2c to $6.82.

Publisher and broadcaster NZME swept through the $1 mark after rising 5c or 5.21% to a new twoyear high of $1.01. Scott Technology was up 5c or 1.89% to $2.70; ikeGPS rose 3c or 2.68% to $1.15; and software company PaySauce gained 1c or 3.17% to 32.5c.

There is still uncertainty about a2 Milk’s recovery and it fell 17c or 2.33% to $7.14. Mitsubishi UFJ Financial Group told the market it had increased its stake in a2 Milk from 5.689% to 6.745%.

Retirement village operators Summerset Group Holdings shed 16c to $13.28. Ryman Healthcare was down 7c to $13.02. Briscoe Group fell 5c to $5.70; and Cavalier fell 2c or 3.85% to 50c.

My Food Bag Group gained 1c to $1.33 after announcing the appointment of Joanne Mitchell as its new chief customer officer. She has held senior marketing roles at Kraft Foods (in Britain), Charlie’s Drinks, McDonald’s Restaurants and most recently DB Heineken.

Tilt Renewables will be delisted on August 3 after the High Court approved the takeover by Powering Australian Renewables, owning Tilt’s Australian business, and Mercury NZ, taking the New Zealand assets. Tilt’s last day of trading is July 27 and shareholders will be paid $8.035 a share on August 3, after receiving a 65c a share special dividend on July 30. —