Sharechat Logo

MARKET CLOSE: NZ shares gain, led by A2, Infratil, Contact Energy

Monday 16th January 2017

Text too small?

New Zealand shares rose, with A2 Milk Co and high-yielding stocks such as Contact Energy and Genesis Energy gaining, with market activity still quiet ahead of February's reporting season.

The S&P/NZX50 Index rose 27.97 points, or 0.4 percent, to 7,074.94. Within the index, 28 stocks rose, 14 fell and eight were unchanged. Turnover was $85 million.

"I suspect a lot of fund managers and investors are still drifting back into the office this week," said Mark Lister, head of private wealth research at Craigs Investment Partners. "I'm expecting it to be a bit subdued ahead of the reporting season, we've got the US market closed overnight so there's not a lot of drivers from offshore but our market has had a pretty good start to the year now, up about 2.5 percent, following a weak finish last year. Our reporting season is really the next key driver for the local market."

A2 Milk Co led the index, up 3.6 percent to $2.30. The stock has recovered after being sold off amidst uncertainty about ASX-listed Bellamy's Australia. Last week, Bellamy's shares plunged when it cut its profit forecast for the second time and announced chief executive Laura McBain's exit.

"They seem to be performing well after the issues their competitor Bellamy's has had over in Australia, investors have taken heart from the fact they seem company-specific rather than sector wide issues so A2's had a bit of an uplift today," Lister said.

Some higher-yielding stocks, which had been under pressure when interest rates rallied strongly into the end of 2016, rose today as interest rates begin to come down somewhat, Lister said. Contact Energy gained 1.4 percent to $4.95, Genesis Energy rose 0.9 percent to $2.17 and Auckland Airport advanced 0.5 percent to $6.755.

Infratil rose 2 percent to $2.865 and Summerset Group Holdings gained 2 percent to $4.68.

Kiwi Property was the worst performer, down 1.4 percent to $1.415. Vector dropped 1.2 percent to $3.24 and Vital Healthcare Property Trust fell 1.2 percent to $2.065.

Outside the benchmark index, Hellaby Holdings gained 0.3 percent to $3.58. Its independent directors now support a takeover bid by ASX-listed auto parts firm Bapcor after the offer was declared unconditional. Bapcor wants Hellaby for its automotive business and plans to sell its equipment, resources and footwear businesses. On Friday Bapcor declared the $3.60-per-share offer unconditional, after it secured more than 50 percent of the shares, and extended the closing date to Feb. 7. As of this morning, it owned 56 percent of Hellaby.

Veritas Investments was unchanged at 20 cents. ANZ Bank New Zealand has agreed to extend the deadline for Veritas to either sell or begin winding up its Nosh food supermarkets until the end of the month. The shares have dropped 60 percent in the past year.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

NZ dollar at 2-week high as inflation lowers rate cut expectations
Dairy product prices descend, led by whole milk powder
MARKET CLOSE: NZ shares fall as Meridian faces declining hydro storage
NZ dollar gains as rising consumer prices deflate chance of rate cut
Treasury Secretary to sit in on RBNZ monetary policy reviews
Cancer test firms Pacific Edge, TruScreen give market some cheer
Bridges denies Ross allegations, welcomes police inquiry
Second round of Overseas Investment Act review juggles competing tensions
Jami-Lee Ross accuses Bridges of corruption, resigns to trigger by-election
First NZ cuts Michael Hill earnings forecast after weak sales

IRG See IRG research reports