Wednesday 27th September 2017
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New Zealand shares rose despite a lack of corporate news, with Tourism Holdings, Synlait Milk and Kathmandu Holdings gaining.
The S&P/NZX50 Index rose 26.6 points, or 0.3 percent, to 7.913.78. Within the index, 21 stocks rose, 20 fell and nine were unchanged. Turnover was $175.9 million.
"The incredible outperformance of New Zealand continues, we're up for the ninth consecutive month - the potential political uncertainty that may play out in the weeks ahead is being ignored, it's safe to say," said Matt Goodson, managing director at Salt Funds Management. "It's a very light news day, the price movements we're seeing are being determined by flows."
Tourism Holdings led the index, up 5.1 percent to $4.91, while Synlait Milk gained 3.7 percent to $5.86.
Kathmandu Holdings continued yesterday's gains, up 2.6 percent to $2.33. The retailer gained 6.1 percent yesterday after announcing it had lifted annual profit 14 percent to $38 million in 2017 as sales grew in New Zealand and Australia, while it cut its debt levels to record lows.
Xero rose 0.8 percent to $29.03 and has risen 65 percent this year. Goodson noted the stock seemed to have decoupled from the FANG stocks - Facebook, Amazon, Netflix, and Google- which have "run into choppier waters" of late.
Sky Network Television was the worst performer, down 4 percent to $2.66, giving back recent gains. Metro Performance Glass dropped 1.9 percent to $1.02 and NZX fell 1.7 percent to $1.17.
Outside the benchmark index, Airwork Holdings rose 16.5 percent to $5.01. Rifa Jair Company, a unit of Zhejiang Rifa Holding Group Co, intends to make a full takeover offer for all fully paid ordinary shares of Airwork that it does not already own at a 21 percent premium to yesterday's closing price.
It currently has a 75 percent stake in the Auckland-based aircraft services business after a $5.40 per share partial offer went unconditional earlier this year. According to the offer documents, it will offer the remaining shareholders $5.20 per share. It has entered a lockup agreement with a number of shareholders lifting its stake to 90.3 percent, above the 90 percent threshold needed to enforce mandatory mop-up provisions.
Future Mobility Solutions gained 0.8 percent to 12.6 cents. The company, formerly known as Sealegs International, has agreed to buy US boat-maker Willard Marine for US$6.9 million.
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