Index edges to a gain in day of big swings

Arange of index changes saw some big swings in individual stocks yesterday, but overall the market finished in slightly positive territory. The S&P/NZX50 index closed up 10.73 points or 0.09 per cent up at 12,551.93 points.

Turnover was 85.5 million shares worth $419 million.

Harbour Asset Management portfolio manager Shane Solly said changes in both the FTSE and NZX portfolio indices had influenced market movements.

Globally, longer maturity government bond yields fell because of the view that the market had got ahead of itself over fears of rising inflation. Solly said that had pushed investors back into growth stocks.

“During the day we have seen some big moves but if you look at the market on its own it’s not up by much.”

Shares in a2 Milk gained the most, rising 6.3 per cent or 40c to $6.75, followed by Synlait Milk, which was up 20c or 5.54 per cent to $3.81. Solly said about 6.3 million shares in a2 had changed hands. “That is quite a big number. Bigger than a normal day’s trading in the stock.”

Digital donation service provider Pushpay Holdings also saw a substantial gain, rising 7c or 4 per cent to $1.82, while

Tourism Holdings gained 9c or 3.67 per cent to $2.54.

Ryman Healthcare rose 1.93 per cent or 25c to $13.23, which was likely to be due to index changes, while rival retirement village operator Oceania Healthcare shares fell 4 per cent or 6c to $1.44.

Shares in Air New Zealand dipped 0.31 per cent or half a cent to $1.615 after giving an update on its profit guidance which was slightly lower than the market expected.

Air NZ said it expected losses before other significant items and taxation “will not exceed” $450m for the 2021 financial year.

Solly said the airline had worked hard to get to a break-even point with it cash burn.

The airline said it was not expecting any meaningful recovery in long-haul demand in the 2022 financial year.

That was despite global vaccination programmes and the potential for long-haul borders to begin reopening progressively in the second half of the financial year.

Precinct Properties saw its shares close at $1.59 after the company announced a planned $250m capital raising to fund the acquisition of two office buildings in Wellington.

Solly said government tenants were seen as highly desirable, so there was good demand for that type of asset, but it could take a couple of days for the market to digest Precinct’s capital raise.