Property stocks lead gains amid slow trading

New Zealand shares edged higher in relatively quiet trading, with property stocks including Kiwi Property Group and Stride Property among the day’s gainers. Electricity generators were largely weaker.

The S&P/NZX50 50 Index increased 13.73 points, or 0.1 per cent, to 10,836.5. Within the index, 28 stocks rose, 20 fell, and two were unchanged. Turnover was $87.8 million, with just two stocks trading on volumes of more than a million shares.

Investors have been drawn to stocks offering reliable dividends this year as the low interest rate environment has increased the attraction of defensive equities. That demand has underpinned the 23 per cent gain on the benchmark index so far this year, which has been led by Meridian Energy, up more than 55 per cent.

James Lindsay, a portfolio manager at Nikko Asset Management, said while the benchmark index was reasonably flat yesterday, the gain so far this year was strong and added to the local market’s run over the past decade.

“If you look back since the GFC, the returns from the New Zealand market have been quite impressive,” he said.

Meridian fell 3.9 per cent, or 21c, to $5.18, after shedding rights to about 13.2 cents per share of dividends. That was the day’s biggest decline.

Lindsay said the electricity stocks were generally weaker on the day, reversing Thursday’s strength. Genesis Energy fell 1.3 per cent to $3.40 and Contact Energy was down 0.7 per cent at $8.49.

Mercury NZ fell 0.8 per cent to $4.97 on a volume of 2.3 million shares. The power company confirmed earnings guidance at yesterday’s annual meeting, which marked the departure of chair Joan Withers.

Property stocks were generally stronger, with Kiwi Property Group up 1.5 per cent at $1.655, Precinct Properties rising 1.4 per cent to $1.85, Stride Property advancing 1.3 per cent to $2.31, and Property For Industry up 1.1 per cent at $2.38. Goodman Property fell 0.9 per cent to $1.13.

Pushpay Holdings, which generates most of its revenue in the US, led the market higher, up 3.8 per cent at $3.32.

Ryman Healthcare was up 2.1 per cent at $13.05 and SkyCity rose 2 per cent to $4.02. Kathmandu Holdings fell 1.3 per cent to $3.03, after giving up rights to a 12 cent dividend.

Hallenstein Glasson was up 0.9 per cent at $5.95 after beating earnings guidance.

Warehouse Group rose 0.4 per cent to $2.45, having reported a recovery in earnings earlier this week.

IkeGPS fell 4.7 per cent to 61 cents, after saying it will raise up to $6.5 million to buy a US engineering software developer. Ike is selling the shares at 60c each.