Exporters lead index up in light trading

Kathmandu, a2 and Cannasouth among those posting gains

New Zealand shares rose in light trading ahead of the US Independence Day holiday, with exporters Kathmandu Holdings and a2 Milk Co leading the market higher.

The S&P/NZX 50 Index increased 12.49 points, or 0.1 per cent, to 10,544.43. Within the index, 27 stocks rose, 18 fell, and five were unchanged. Turnover was $84.7 million.

Stocks across Asia were largely

weaker as investors continue to worry over the trade tensions between the US and China, which may not have subsided as many hoped after the G20 leaders’ meeting.

Exporters led the market higher. Outdoor equipment retailer

Kathmandu was up 3.3 per cent at $2.17. A2 rose 2.5 per cent to $15.07 and Fisher & Paykel Healthcare increased 1.3 per cent to $16.20.

Grant Davies, an investment adviser at Hamilton Hindin Greene, said investors are waiting for earnings season in August for a steer on where companies with June and December balance dates are tracking.

“Over the next week or two we might start to get an idea of what we’re in for,” Davies said.

Spark New Zealand was the most traded stock on a volume of 2.8 million shares, down on its 5.1 million average. The shares fell 1.5 per cent to $3.99. ASX-listed Vocus Group, whose New Zealand division is the country’s third-biggest broadband player, yesterday said its Kiwi business remained a strong performer and was well-positioned for growth.

Kiwi Property Group rose 0.3 per cent to $1.615. Precinct Properties New Zealand increased 0.6 per cent to $1.75.

Property stocks have been in demand in the globally low interest rate environment, which has helped keep New Zealand’s benchmark index near an all-time high. Property For Industry rose 0.5 per cent to $2.21 and

Goodman Property Trust was up 0.5 per cent at $1.93.

Tourism Holdings dropped 5.3 per cent to $3.60. Synlait Milk declined 2.7 per cent to $9.05.

Fonterra Shareholders’ Fund

units were down 0.8 per cent at $3.75, having hit a record low $3.73. Dairy prices fell at the latest Global Dairy Trade auction, and investors are unconvinced that Fonterra’s efforts to pare back its businesses will improve its profitability.

The co-operative’s farmer-owned shares fell 0.5 per cent to $3.75, giving a market capitalisation of $6.04 billion. When Fonterra listed the fund at $5.50 a unit in 2012, the cooperative’s implied market cap was $8.72b. NZX was unchanged at $1.12.

Shares of Pushpay Holdings were halted at $3.79 to allow founder and former CEO Chris Heaslip to sell down his stake, using a bookbuild managed by Deutsche Craigs. The investment bank underwrote the sale. Outside the benchmark index,

Cannasouth jumped 14 per cent to 33 cents after the medicinal cannabis firm said it will receive R&D support from Callaghan Innovation. Auckland International

Airport’s 2023 bond paying 3.674 per cent annual interest was the most traded debt security on a volume of 663,000 notes. They closed at a yield of 2.02 per cent, down 6 basis points. The airport operator’s shares fell 1.5 per cent to $9.62, or a gross yield of 3.13 per cent.