Shares rise as virus rates buoy investors

Confidence high as 400,000 go back to work under level 3

New Zealand shares rose in the first day of looser lockdown restrictions with investors optimistic that low infection rates could see the economy opened up further.

The S&P/NZX Index climbed 340.08 points, or 3.3 per cent, to 10,759.56. Within the index, 34 stocks rose, nine fell and seven were unchanged. Turnover was $181.6 million.

Trading resumed yesterday after the long Anzac weekend, following a strong lead from Wall Street overnight with investors looking forward to looser restrictions for the global economy.

“Over the weekend our Covid numbers seemed to be under control and there is a lot of confidence going into level 3,” said Peter McIntyre, investment adviser at Craigs Investment Partners. “Some in the marketplace are ‘guesstimating’ we may only be here for a few weeks before we drop down another level.”

Some 400,000 workers were able to return to their jobs yesterday.

SkyCity Entertainment Group

led the market higher, gaining 7.1 per cent to $2.27. The group’s casinos have all been closed since the lockdown took effect last month.

Auckland International Airport

increased 6.9 per cent to $6.03. McIntyre said international fund managers and institutional investors had been “topping up” their holdings following the airport operator’s successful capital raising.

Restaurant Brands New Zealand

rose 4.3 per cent to $12.10 on a volume of 34,000 shares. Fast-food firms could resume drive-through and home delivery services yesterday.

Air New Zealand rose 4.2 per cent to $1.255. The national carrier’s update for March passenger numbers was down 25 per cent on the previous year. Tourism Holdings rose 2.5 per cent to $1.23. Prime Minister Jacinda Ardern yesterday said the Government was still considering special assistance for parts of the economy, such as international tourist services which are unlikely to be able to restart operations even when the country moves to alert level 2 or 1. Metlifecare increased 2.2 per cent to $4.17. Oceania Healthcare updated the market to report it had no cases of Covid-19 and while unable to settle the sale of units during level 4 restrictions, the numbers of sales remained consistent. The shares fell 1.3 per cent to 79 cents.

Westpac Banking Corp declined 1.1 per cent to $15.98. The Australian bank yesterday announced a A$2.24 billion ($2.4b) impairment charge will be booked in its first-half results scheduled to be released on Monday, Vital Healthcare Property Trust posted the day’s biggest decline, falling 1.6 per cent to $2.45. Outside the benchmark index,

TruScreen fell 30.3 per cent to 6.9 cents after announcing a $2m capital raising at 5 cents per share.

Eroad rose 9.1 per cent to $2.40 after reporting continued growth in the fourth quarter and retaining expectations for the 2020 financial year.

Steel & Tube plans to make up to 200 staff redundant and warned its restructuring efforts and other coronavirus-related impairments and doubtful debt provisions will hurt this year’s bottom line. The shares fell 1.6 per cent to 62 cents.