MARKET CLOSE: NZ shares chart record high as TradeMe, Contact, Vector rise, Spark drops

Wednesday 20th April 2016

New Zealand's benchmark S&P/NZX 50 Index hit another record , led by Trade Me Group, Contact Energy and Vector while Spark New Zealand fell from a nine-year high.

The S&P/NZX 50 Index gained 28.23 points, or 0.4 percent, to 6,901.27. Within the index, 27 stocks rose, 20 fell and two were unchanged. Turnover was $158.3 million.

"The market's had another pretty good day today with confidence driven from offshore markets - we're ticking along quite nicely," said Grant Williamson, director at Hamilton Hindin Greene. "This makes it seven consecutive days of the market being firmer, the New Zealand market just keeps on going with investors looking for solid growth stocks."

The local index has outperformed most global markets this year, gaining 8.7 percent as global investors chase higher yields. Today's record high is the sixth in a row.

Trade Me led the index, up 2.5 percent to $4.52, a six-week high. Contact Energy gained 2.4 percent to $5.10 while Vector rose 2.3 percent to $3.53.

Listed aged-care providers performed well today, with Ryman Healthcare up 2.3 percent to $8.90, Summerset Group Holdings gaining 2.2 percent to $4.57, and Metlifecare rising 0.2 percent to $5.34.

Ryman said today it will report full-year earnings on May 20, having posted a 23 percent gain in first-half profit in November as revenue increased from a bigger asset base and it lifted the value of properties.

"Ryman could very well be coming in for demand approaching its full-year results," Williamson said. "Investors are buying ahead of what's expected to be a very good result. It has disappointed in the last few years, it's had some relatively flat results, but it seems to be coming back into favour for investors now."

Fletcher Building advanced 1.1 percent to $8.27.

"It has been a pretty solid performer since it posted a result in February," Williamson said. "Now analysts are becoming more bullish about it, that's giving investors some confidence."

Spark was the biggest decliner, down 2.7 percent to $3.645. It reached a nine-year high of $3.748 yesterday, and has gained 14 percent this year. Williamson said today may be profit-taking.

Skellerup Holdings fell 2.1 percent to $1.40, and Steel & Tube shed 1.3 percent to $2.25.

NZX fell 1 percent to $1. The stock market operator will increase risk assessment of market participants and clarify what practices by brokers and fund managers it regards as market misconduct, according to its 2016 regulatory programme.

Outside the benchmark index, agricultural services company PGG Wrightson dropped 1.2 percent to 40.5 cents. It has warned investors that its seed cleaning site in Uruguay has fallen victim to that country's widespread flooding. Even so, Wrightson maintained its outlook for full-year operating earnings before interest, tax, depreciation and amortisation of between $61 million and $67 million, saying it still believes the guidance range is appropriate.

BusinessDesk.co.nz

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