Weekend Herald

Record end to mar­ket’s best week in months

- Graham Skellern Americas Stock Markets · Asia-Pacific Stock Markets · Finance · Stocks & Markets · Financial Markets · Business · New Zealand · New Zealand Exchange · United States of America · Fisher & Paykel Ltd. · Contact Energy Limited · Fletcher Building · Meridian · Warehouse

Fu­elled by re­cov­er­ing prices across the board, the New Zealand share­mar­ket fin­ished its best week in three months on a record high.

The S& P/ NZX 50 gained 44.62 points or 0.36 per cent to 12,280.54, af­ter reach­ing an in­tra­day high of 12,312.69. On the day be­fore, it sur­passed the pre­vi­ous peak of 12,073.34 set on Fe­bru­ary 21.

There were 87 gain­ers and 50 de­clin­ers over the whole mar­ket, with trad­ing reach­ing 50.8 mil­lion shares worth $ 151.82. Yes­ter­day was the in­dex’s eighth suc­ces­sive daily rise.

“We’ve had a pretty solid week — the best since early July,” said Mark Lis­ter, head of pri­vate wealth re­search at Craigs In­vest­ment Part­ners. “We’ve seen good ral­lies in the United States mar­kets, and the gen­tail­ers re­bound­ing strongly on the ex­pec­ta­tion that the Ti­wai Point alu­minium smelter clo­sure is not all over.

“And in­ter­est rates con­tinue to fall. A six­month de­posit rate at the bank is 1 per cent. Busi­nesses are rel­a­tively op­ti­mistic about the next six to 12 months — there’s light at the end of the tun­nel rather than just gloom and doom.

“I don’t see the de­mand for good quality stocks turn­ing around. Fisher and Paykel Health­care and a2 Milk drove the mar­ket through the Covid cri­sis and have faced sell­ing pres­sure in the last month or so. But a whole bunch of other com­pa­nies have taken the ba­ton and run with it,” Lis­ter said.

Fisher and Paykel Health­care was up

9c to $ 34.55 but a2 Milk fell 11c to $ 15.57.

Con­tact En­ergy surged 30c or 3.97 per cent to $ 7.85; Sum­mer­set Group climbed 42c or

4.52 per cent to $ 9.72; Ebos Group rose 24c to $ 24.76; on­line travel provider Serko increased 10c or 2.13 per cent to $ 4.79; and

Fletcher Build­ing gained 10c or 2.3 per cent to $ 4.45.

From the en­ergy sec­tor, Trust­power increased 19c or 2.57 per cent to $ 7.59, Ge­n­e­sis was up 5c to $ 3.18 but Meridian stalled, fall­ing 10c to $ 5.40.

Among the de­clin­ers, Freight­ways fell 8c to $ 8.31, SkyCity slipped 3c to $ 3.11, and The Ware­house also lost 3c to $ 2.17.

Cho­rus re­ported that fi­bre broad­band con­nec­tions increased by 33,000 dur­ing the first quar­ter of the 2021 fi­nan­cial year but cop­per broad­band and voice con­nec­tions de­creased by 57,000. Its share price fell 8c to $ 8.82.

The big­gest de­cliner on the day was En­prise Group, which in­vests in high­growth tech­nol­ogy com­pa­nies, fall­ing 15c or 12.93 per cent to $ 1.01.

Rakon, which makes ad­vanced fre­quency and tim­ing prod­ucts, was up 2.5c or 6.49 per cent to 41c.

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