Sharechat Logo

MARKET CLOSE: NZ shares rise led by Synlait, A2, Comvita as US earnings stoke global sentiment

Thursday 19th April 2018

Text too small?

New Zealand shares gained as the US earnings season helped lift sentiment toward equities. Growth-linked companies including Synlait Milk, A2 Milk, Comvita led gains in the local market.

The S&P/NZX 50 Index rose 3.54 points, or 0.04 percent, to 8,373.03. Within the index, 26 stocks fell, 13 rose and 11 were unchanged. Turnover was $111 million.

Across the Asia Pacific region today, equity markets were generally stronger. Japan's Topix was up 0.2 percent and Australia's S&P/ASX 200 Index was up 0.4 percent in afternoon trading. Overnight, better earnings from US companies including Morgan Stanley lifted Wall Street.

"The US earnings season has got off to a good start," said Greg Smith, head of research at Fat Prophets. "The focus is going to turn away from geopolitical concerns back to the earnings season, which highlights the underlying strength in the US economy."

Synlait climbed 3 percent to $9.88 and is up 38 percent for the year while A2 advanced 2.8 percent to $12.70, bringing its year-to-date gain to 58 percent. Comvita, another beneficiary of Chinese demand for New Zealand products, rose 2.3 percent to $6.75.

Scales Corp, the apple grower and exporter, rose 2.3 percent to $4.50. The company told BusinessDesk today that it is eyeing potential agribusiness acquisitions that would fit well with its export apple business.

"We think New Zealand agribusinesses are in a good space, they make good products, and sell them to Asia," chief executive Andy Borland told BusinessDesk. "We have over the years developed our skills around exporting and dealing with Asia, particularly China, and we are looking at businesses within New Zealand that would work with those sort of dynamics and be complementary to our apple business. We are really looking for those sort of New Zealand opportunities."

On the Unlisted platform today, monopoly kiwifruit exporter Zespri traded at a record $8.35, becoming Unlisted's first $1 billion company.

Heartland Bank rose 1.1 percent to $1.78 and Trade Me Group climbed 1.1 percent to $4.44. Chorus rose 0.9 percent to $4.

Defensive stocks were among the biggest decliners. Metlifecare fell 2.2 percent to $5.70 and Mercury NZ fell 1.7 percent to $3.15. Traders have speculated that Mercury could drop out of a benchmark MSCI index when weightings are reviewed. Fletcher Building, another contender, is halted for its capital raising.

Arvida Group dropped 1.7 percent to $1.18 and Ryman Healthcare fell 1.4 percent to $10.63.

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report