Energy stocks add brief spark to prices
Leading energy stocks Contact and Meridian powered into life to provide the New Zealand sharemarket with a small gain, though the market ran out of puff by the end of the day.
The S&P/NZX 50 Index closed at 12,368.13, up 19.29 points or 0.16 per cent, after reaching an intraday high of 12,432.98. There were 75 gainers and 66 declines market-wide on strong volume of 78.86 million share transactions worth $278.07 million.
There was a big trade in the Smartshares Total World ( NZ$ hedged) Exchange Traded Fund with 10.2 million units worth $31.27m sold. The fund’s price increased 1.8c to $3.072.
Matt Goodson, managing director of Salt Funds Management, said it was a fairly flat, quiet day on the market. But the so-called low-beta energy stocks, particularly Meridian, made some big moves.
“As always, there was no news out there and I put it down to a little bit of randomness from the large offshore exchange traded funds.
“The key moment will be just after Easter when the reweighting of the global clean energy fund is formalised. The implementation takes place on April 16 and whether there has been enough pre-trading in Contact and Meridian, we will have to wait and see,” said Goodson.
Contact lifted 10c to $6.86, Meridian rose 17.5c (3.43 per cent) to $5.28; while Genesis Energy was down 11c or 3.17 per cent to $3.36 and Vector fell 8.8c or 2.16 per cent to $3.98.
Mainfreight was up 55c to $66.75;
Auckland International Airport
gained 8.5c to $7.375; Summerset
Group Holdings rose 16c to $11.86; and online travel provider Serko continued its strong run, surging 24c or 3.55 per cent to a new high of $7.01. Upmarket developer Precinct
Properties New Zealand rose 4.5c or 4.62 per cent to $1.695 after announcing it is taking its management inhouse. Precinct is paying $215m to previous external manager AMP Haumi Management — a joint venture between AMP Capital and Abu Dhabi Investment Authority — for cancelling the services agreement.
Amongst other property companies, Asset Plus increased 1.5c or 4.62 per cent to 34c; while Property for Industry was down 2.5c to $2.79 and Argosy declined 2c to $1.435.
Air New Zealand fell 4.5c or 2.55 per cent to $1.72 after the news of a new Covid cluster in Brisbane. Other reopening-reliant stock Tourism
Holdings was down 8c or 3.1 per cent to $2.50, and SkyCity Entertainment declined 4c to $3.41.
Synlait Milk slumped 21c or 5.92 per cent to $3.34, equivalent to its net tangible assets, after reporting a 76 per cent fall in net profit to $6.4m on increased revenue of $664.2m, for the six months ending January.
Synlait’s infant formula sales were down 16 per cent and it said it is still experiencing significant uncertainty and volatility in its business. Synlait’s biggest customer and shareholder, a2 Milk, fell a further 7c to $8.68. My Food Bag rose 4c or 2.55 per cent to $1.61, after reaching a low of $1.52 since listing.
Other gainers were The Warehouse Group, up 12c or 3.3 per cent to $3.76; Comvita gaining 7c or 2.22 per cent to $3.22; Marsden Maritime Holdings, owner of Northport, picking up 12c or 1.95 per cent to $6.26; Scott Technology increasing 6c or 2.94 per cent to $2.10; and Accordant Group (formerly Allied Work Force) adding 4c or 3.13 per cent to $1.32. Hallenstein Glasson increased 7c to $7.45 after providing a strong halfyear result last Friday.