Sharemarket rises ahead of earnings reports

New Zealand shares rose in quiet trading, as investors prepare for a flurry of earnings next week. Infratil entered a trading halt for the first tranche of a $400 million capital raising.

The S&P/NZX 50 index increased 3.81 points, or 0.04 per cent, to 10,180.80. Within the index, 30 stocks rose, 14 fell, and six were unchanged. Turnover was $98.9m.

Peter McIntyre, an investment adviser at Craigs Investment Partners, said a lot of local investors were distracted by Xero’s strong result on Thursday, with the ASX-listed software company still widely held, and that the local market was reasonably quiet yesterday. Xero was up 2.2 per cent in late trading on the ASX at A$61.50, adding to Thursday’s 11 per cent gain.

Infratil shares were halted at $4.45 for a $100m placement to institutional investors at $4 a share. The company is then going to raise $300m in a 1-for-7.46 rights issue to help fund its share of the $3.4 billion acquisition of Vodafone New Zealand. The new shares will also be entitled to the 11c final dividend declared as part of yesterday’s annual result.

NZX led the market higher, up 1.9 per cent at $1.09 on a volume of 417,000 shares. Sky Network Television rose 1.7 per cent to $1.23 and Vector advanced 1.6 per cent to $3.76. Spark New Zealand was the most traded stock on a volume of 4.2 million shares. It increased by 0.4 per cent to $3.755.

Kiwi Property Group, which reports on Monday, rose 0.3 per cent to $1.535 on a volume of 1.4 million shares, while Goodman Property Trust, which reported this week, rose 0.3 per cent to $1.805 on a million units.

Auckland International Airport hit a record $8.625, ending the day at $8.57 on a volume of 1.1 million shares. Restaurant Brands New Zealand posted the biggest decline on the day, down 3.6 per cent at $8.87 on a volume of 63,000 shares. The fast-food operator’s unionised workers will be striking this weekend.

Dual-listed Australia & New Zealand Banking Group dropped 3.1 per cent to $27.25. Westpac Banking Corp was down 1.3 per cent at $26.80, while much smaller rival Heartland Group Holdings increased 0.6 per cent to $1.58.

PGG Wrightson was unchanged at 52c on a volume of 1.2 million shares. Fonterra Co-operative Group’s 2025 bonds paying annual interest of 4.15 per cent were the most traded debt security on a volume of 1.8 million. The notes closed at a yield of 3.18 per cent, down 1 basis point.