Trade deal hopes boost NZ market
New Zealand shares rose for a third day as investors around Asia remained optimistic that trade tensions between China and the US will ease, removing a risk to global growth.
The S&P/NZX 50 index increased 54.81 points, or 0.6 per cent, to 8793.17. Within the index, 28 stocks gained, 17 fell, and five were unchanged. Turnover was $150.6 million.
Stocks across Asia rallied for another day on growing optimism US President Donald Trump and his Chinese counterpart Xi Jinping will overcome their trade dispute. UK Prime Minister Theresa May’s successful vote to keep the leadership also supported investor sentiment.
“We’ve seen a lot of uneasiness in regard to Theresa May — she got the vote of confidence, if you can say that,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. “Trade tensions eased and it’s given the market some relief and there was a sea of green across Asia during the day.”
Fletcher Building led the market higher, up 4.5 per cent to $4.91, a three-week high, on slightly busier volumes than usual of 1.7 million. A notice to the NZX on Wednesday showed Australian fund manager Perpetual increased its stake in the building company to 11 per cent.
Air New Zealand rose 1.3 per cent to $3.02 after reaching an agreement with workers who threatened to strike in the run-up to Christmas. Auckland International Airport rose 1.7 per cent to $7.10.
Spark New Zealand was the most active stock on a volume of 3.4 million, slightly busier than usual. It fell 0.5 per cent to $4.31.
Trade Me slipped 0.6 per cent to $6.33 on a volume of 2.3 million shares. The online marketplace said a potential suitor dropped out of a bidding war after it put UK private equity firm Apax Partners in the box seat on Wednesday, agreeing to a planned scheme of arrangement at $6.45 a share.
NZX was unchanged at $1.
Restaurant Brands slipped 0.2 per cent to $8.45 on 1.2 million shares. The fast-food retailer is under a partial takeover offer by Mexico’s Finaccess Capital.
Meridian Energy rose 1.5 per cent on heavier trading of 1.9 million. Chair Chris Moller announced he will retire from the board at next year’s annual meeting and be replaced by recent board recruit Mark Verbiest.
Of other companies with volumes of one million shares or more, Sky Network Television was unchanged at $2.06, a2 Milk rose 2.2 per cent to $11.13 and Infratil gained 2 per cent to $3.62. Contact Energy fell 2 per cent to $5.80, posting the biggest decline on the NZX 50.
Outside the benchmark index, TIL Logistics was unchanged at $1.50. Fuels retailer Z Energy rose 0.5 per cent to $5.73. Vital Healthcare Property Trust was unchanged at $2.05. The New Zealand Shareholders’ Association supported dissident investors seeking to change the governance of the property trust, saying the manager has treated unitholders with contempt.