Mixed day of trading sees NZ stocks edge up

New Zealand shares inched higher but trading was mixed as investors prepare for the local earnings season and hope for progress on the ongoing trade dispute between China and the US.

The S&P/NZX 50 index rose 1.64 points, or 0.02 per cent, to 9110.55. Within the index, 29 stocks rose, six were unchanged and 15 fell. Turnover was $120.8 million.

Greg Smith, head of research at Fat Prophets, said the local market has started the year well. While the outlook remains mixed, given the continuing US-China trade issue and the partial government shutdown in the US, investors have been adding a mix of both defensive stocks and some growth stocks.

“What we are seeing both domestically and overseas is that things possibly aren’t as bad as has been priced in,” he said. “The bar has been set quite low.”

Spark New Zealand was again among the most heavily traded stocks. It was down 0.2 per cent at $4.12, with almost 7.9 million shares traded.

Smith said 2019 will be a big year for Sky Network TV, which is introducing hybrid internet-based services to complement its satellite TV business. Sky rose 1.1 per cent to $1.91.

Chorus rose 0.4 per cent to $4.845. Pushpay rose 1.7 per cent to $3.69 and Z Energy rose 0.2 per cent to $6.09.

AMP fell 6.4 per cent to $2.48 after warning investors profit for 2018 may fall to A$30 million, from A$848m in 2017, due to losses at the businesses it is selling to Resolution Life and extra capital it is carrying against those assets.

Smith says AMP and the Australian banks generally are going to face tighter regulation and higher costs from that country's royal commission into banking conduct headed by Kenneth Hayne. It is due to issue its final report next month.

Oceania Healthcare fell 2.8 per cent to $1.06. Aged care operating earnings for the half-year through November fell 14 per cent from a year earlier due to higher wage costs. Company-wide underlying operating earnings were up 7.5 per cent.

Ryman Healthcare fell 1 per cent to $11 and Summerset Group was unchanged at $6.44. Kiwi Property rose 1.5 per cent to $1.40 and Precinct Properties rose 0.3 per cent to $1.485.

Among smaller cap companies, PaySauce was unchanged at 1.8c having risen 29 per cent on Thursday.