NZ shares rise as US, China trade tensions ease

New Zealand shares joined the global rally in equity markets as the prospect of improving trade relations between the US and China lifted investor confidence. Pushpay Holdings led the market higher after getting a broker upgrade.

The S&P/NZX 50 index rose 21.77 points, or 0.2 per cent, to 9270.76, a weekly gain of 1.9 per cent. Within the index, 31 stocks gained, 14 fell and five were unchanged. Turnover was $133.6 million.

The local bourse followed global stock markets higher on optimism ministeriallevel discussions between US and Chinese officials will end the escalating trade barriers being imposed by the world’s two biggest economies.

“The olive branch seems to have been extended by the US to China on trade,” said Greg Smith, head of research at Fat Prophets. “Those talks will happen in the coming weeks, the market’s optimistic about that.”

Pushpay led the local market higher, up 4.4 per cent to $4.04 after the payments software developer was upgraded to a “buy” by a broker. The stock has gained 18 per cent from a trough in August.

NZX rose 2.8 per cent to $1.11. The stock market operator signed a memorandum of understanding this week with Nasdaq to explore ways of deepening their existing relationship.

Gentrack increased 2.3 per cent to $7.11 and Comvita was up 1.8 per cent to $6.10.

Summerset Group gained 1.3 per cent to $7.80 after accepting more oversubscriptions than initially planned for a seven-year bond. The retirement village operator raised $125 million, rather than $100m. Fonterra Shareholders Fund units fell 0.4 per cent to $4.99 after conflicting analyst reports from FNZC and Forsyth Barr on how to interpret Fonterra’s review.

Tourism Holdings fell 2.2 per cent to $5.40, the biggest decline on the day.

Chorus slipped 1.6 per cent to $4.79 and

Spark New Zealand decreased 1.4 per cent to $3.98.

Outside the benchmark index,

TruScreen rose 2.1 per cent to 24c after the cervical cancer test maker received a $450,000 order from Zimbabwe health officials and announced details of a $1m offer to current investors via a share purchase plan. NZME increased 1.5 per cent to 68c after new substantial shareholder Renaissance Asset Management said the stock was undervalued, particularly its digital classifieds businesses.

Among blue-chip stocks, a2 Milk Co slipped 0.6 per cent to $11.99, Air New Zealand rose 0.5 per cent to $3.18, Auckland International Airport increased 0.1 per cent to $6.995, Fletcher Building gained 0.8 per cent to $6.37 and Mainfreight advanced 1.7 per cent to $29.28.