Market commentary

WELLINGTON: The New Zealand sharemarket awoke from its slumber in late trading yesterday and posted its eighth successive day of gains.

The S&P/NZX 50 Index went into negative territory during the afternoon until the last halfhour, closing at 13,321.99, up 21.95 points, after reaching an intraday low of 13,279.36.

Shane Solly, portfolio manager with Harbour Asset Management, said it was one of the quieter trading days, but there were some interesting developments going on behind the scenes.

‘‘Moving into Level 2 for the rest of the country outside Auckland takes away some of the earnings risks for companies.

‘‘While the companies can get on with business, this brings back the risk of the Reserve Bank hiking the official cash rate next month,’’ Mr Solly said.

The New Zealand 10 year Government bond yield reached its highest level in two years at 1.93%, after sitting on 0.62% at the corresponding time last year. The US 10 year Treasury bond yield is at present 1.3%.

Retailer Kathmandu Holdings was one of the better performers, rising 6c or 4.26% to $1.47 following an upbeat report from an Australian broker.

Briscoe Group increased 10c to $6.81 and The Warehouse Group was up 6c to $3.86.

Wine exporter Delegat Group climbed 50c or 3.55% to $14.60; and SkyCity Entertainment gained 5c to $3.39, buoyed by the reopening of the Hamilton and Queenstown casinos in Level 2.

Carpet maker Bremworth (formerly Cavalier Corporation) increased 3c or 4% to 78c. It has now risen more than 50% since trading at 50c on July 30.

Sky Network Television’s strong run slowed, falling 0.005c or 2.33% to 21c.

It was a day for the small cap stocks. Online personal lender Harmoney rose 10c or 4.98% to $2.11; transtasman chemicals business DGL Group increased 12c or 4.67% to $2.69; hightech manufacturer Rakon gained another 2c to $1.15; and early child care Evolve Education was up 5c or 7.04% to 76c.

Market leader Fisher and Paykel Healthcare was up 12c to $33.87; Chorus recovered 7c to $7.14; Ebos Group gained 19c to $35; Fletcher Building picked up 11c to $7.48; Pushpay Holdings increased 6c or 3.39% to $1.83; and Comvita collected 4c to $3.74.

Port of Tauranga was down 10c to $7.20; Napier Port gained 5c to $3.29; and Marsden Maritime Holdings increased 7c to $6.54. Bluffbased South Port New Zealand climbed 20c or 2.22% to $9.20.

Ryman Healthcare was down 19c to $15.61. —