Vector helps market snap its losing streak

New Zealand shares snapped a five-day decline, as Auckland International Airport chalked up a record. Vector and Chorus were among stocks recovering from a recent selloff over regulatory fears.

The S&P/NZX index increased 46.01 points, or 0.5 per cent, to 10,117.99. Within the index, 24 stocks rose, 21 fell, and five were unchanged. Turnover was $162.8 million.

“The market might have finished up for the day for the first time this week, but there’s really not a lot driving it,” said Grant Williamson, a director at Hamilton Hindin Greene.

Auckland International Airport rose as high as $8.78, ending the day at $8.765, up 1.7 per cent on 2.3 million shares, almost twice its 90-day average of 1.2 million. The country’s major gateway has climbed 22 per cent so far this year, outpacing a 15 per cent increase by the benchmark index.

Williamson said the stock is widely held, but he was at a loss to explain its recent strength, given the dividend yield at 3.5 per cent was less attractive than other utility or infrastructure companies.

Vector led the market higher, up 2.5 per cent at $3.73 on 126,000 shares. Auckland city’s electricity and gas distribution network operator ended the week down 2.4 per cent after a draft Commerce Commission decision declined assistance to help reduce the risk the firm faces from solar and other technologies that may reduce load on its network.

Telecommunications utility Chorus rose 1.6 per cent to $5.78, recovering some of its loss over the past fortnight since a draft consultation paper from the Commerce Commission spooked some investors into thinking the network operator may face a tougher regulatory framework than they thought.

Retirement village stocks bounced back from recent selling pressure, with Ryman Healthcare up 2.2 per cent at $11.58, Summerset Group rising 0.7 per cent to $5.54, and Metlifecare increasing 1.4 per cent to $4.47.

Williamson said there was a bit of bargain-hunting after the retirement stocks were weighed on by a slowdown in Auckland’s property market.

Fisher & Paykel Healthcare rose 0.3 per cent to $15.40 on a volume of 1.5 million shares, more than twice its 90-day average. Williamson said the shares were sold off when some investors were disappointed by its record profit announcement earlier this week.