Shares rise as economies slowly reopen

Tourism Holdings leads local increase with 10% jump

New Zealand shares rose as the further relaxing of global Covid-19 restrictions bolstered investor confidence.

The S&P/NZX 50 Index advanced 138.94 points, or 1.3 per cent, to 10,914.74. Within the index, 33 stocks rose, 16 fell and one was unchanged. Turnover was $136.6 million.

Investor sentiment was buoyed as more of the global economy opened up, clearing the way for a recovery from the economic damage left behind by the Covid-19 outbreak and international lockdowns.

Yesterday, Japan ended its nationwide state of emergency after new coronavirus cases slowed. The news pushed Japan’s Nikkei 225 up 2.2 per cent in afternoon trading, leading a rally across Asia.

“Economies . . . getting back to normal business has really given markets a kicker today,” said Peter McIntyre, an investment adviser at Craigs Investment Partners.

The positive news had pulled attention away from simmering tensions between China and the United States, with Beijing’s effort to exert more control over Hong Kong the latest issue dividing the superpowers.

Hong Kong’s Hang Seng index rose 1.9 per cent in afternoon trading, Shanghai’s Composite Index lifted 0.7 per cent and Australia’s S&P/ASX 200 Index was up 2.4 per cent.

Tourism Holdings led the local market higher, jumping 10 per cent to $1.54. The company yesterday began the process of restructuring to match reduced activity. The restructuring will likely affect 140 of its around 900 New Zealand employees.

Kathmandu Holdings rose 5.1 per cent to $1.04 with 4.8 million shares changing hands. The retailer has been picking up momentum since it raised capital and has been able to progressively resume trading as restrictions have eased, McIntyre said.

Air New Zealand rose 5.2 per cent to $1.32 after detailing its financial position. While the airline confirmed it expects to report a loss this year, it said current domestic flying is cash positive and it has yet to fall back on the Government’s $900m loan. Auckland International Airport

rose 5.7 per cent to $6.32.

Kiwi Property Group rose 2.6 per cent to 98.5 cents, continuing to gather strength after reporting its annual result yesterday. Research house Jarden yesterday upgraded its rating on the stock to “outperform”.

Arvida Group declined 0.7 per cent to $1.39. The retirement village operator said it will build 20 per cent fewer units than planned due to the Covid-19 outbreak softening the housing market. The group yesterday reported a 34 per cent rise in underlying profit to $51.7m in the March year and said it will pay an annual dividend of 5.8 cents per share.

Napier Port shares rose 1.3 per cent to $3.18 after reporting a 39 per cent increase rise in annual profit to $12.8m. The port operator said freight volumes last month were down 40 per cent and it expects May’s trade to also be down “materially” on the same period last year.

The port cancelled its interim dividend. Port of Tauranga declined 0.5 per

cent to $7.33. Pushpay Holdings posted the biggest decline of the day, falling 3.8 per cent to $6.87.