Overseas bank-rate uncertainty lifts NZ shares

New Zealand shares rose with blue-chips including Auckland International Airport and Ebos Group hitting new highs as investors remain uncertain about whether US and Australian central banks will cut interest rates.

Summerset Group fell in unusually busy trading.

The S&P/NZX index increased 11.56 points, or 0.1 per cent, to 10,235.37. Within the index, 20 stocks rose, 22 fell, and eight were unchanged. Turnover was $174.7 million, of which Summerset accounted for $54 million.

Equity markets were mixed across Asia, as investors remained uncertain about the impact of the persistent trade dispute between the US and China, while at the same time weighing up the impact of expected interest rate cuts in the US and Australia.

“The focus is what’s happening offshore, particularly in the US,” said Craigs Investment Partners adviser Peter McIntyre.

The low-interest-rate environment has been a boon for local blue-chip stocks, utilities and property firms due to the reliable dividends New Zealand firms often pay investors. Auckland International Airport rose 0.2 per cent to a record $9.02. Goodman Property Trust rose 1.3 per cent to $1.885 on a volume of 1.73 million units, Ryman Healthcare increased 1.2 per cent to $11.65, and Genesis Energy increased 1.1 per cent to $3.17.

Ebos Group hit a record $23.50, closing at $23, down 0.8 per cent and Mainfreight hit a record $42.50, closing at $39.71, down 0.2 per cent.

Pushpay Holdings led the market higher, up 2.1 per cent at $3.90 on 436,200 shares.

Summerset fell 1.3 per cent to $5.52 on a volume of almost 10.2 million shares, the bulk of which was in a single trade.

“That’s big for Summerset,” McIntyre said. “There are some institutional investors in there buying and selling the stock with that kind of volume.”

That weighed on other retirement village stocks, which have fallen out of favour among investors who often tie the companies’ fortunes with the residential property market. Oceania Healthcare fell 1 per cent to $1.04, Metlifecare declined 0.7 per cent to $4.34 and Arvida Group was down 0.8 per cent at $1.32.

Kathmandu Holdings posted the biggest decline, down 4.1 per cent at $2.09 on almost 115,000 shares. The retailer has declined 5 per cent this week, having shed rights to its 4c dividend on June 4.

Contact Energy increased 0.5 per cent to $7.59 after announcing a new gas deal with OMV r.

Spark New Zealand was unchanged at $3.875 on 4.7 million shares, down on its 90-day average of 5.4 million.