MARKET CLOSE: NZ shares rise joining global rally
By Suze Metherell
Jan. 29 (BusinessDesk) – New Zealand shares rose today joining a global rally but the markets continue to be cautious as investors await earnings season.
The NZX 50 climbed 34.284 points or 0.7 percent to 4882.723. Within the Index 36 shares rose, eight fell and six were unchanged. Total turnover for the day was $108 million.
Across the region Asian markets snapped a four-day slump to rally, bringing New Zealand stocks with them. Australia’s S&P/ASX 200 was up 0.7 percent in afternoon trade. Japan’s Nikkei 225 Index rose 1.7 percent, and Hong Kong’s Hang Seng Index climbed about 1 percent.
Australian markets recovered after slipping 1 percent yesterday, as investors responded positively to results that were higher than expected. New Zealand’s earning season starts in February.
“Australia has certainly had a number of results open people’s eyes,” Rickey Ward, head of equities at Tyndall Investment Management, said. “Most people are rather cautious, especially buyers, there has been a strong rally in equities over the last couple of years, but we’re waiting to see if that’ll follow through in delivery.”
Leading the index higher was OceanaGold jumping 3.9 percent to $2.15. Insurance group Tower kept pace climbing 2.3 percent to $1.77. A2 Corp gained 2.2 percent to 93 cents, and Contact Energy rose 2 percent to $5.20. Xero gained 1.3 percent to $41.99.
The high kiwi dollar against its Australian counterpart has many companies warning of an impact on returns, said Ward. The kiwi traded at 93.95 Australian cents at 5.30pm in Wellington.
“But the companies that navigate their way through that high dollar because they have the right product or because they’re in an area of growth,” he said.
Fletcher Building, which has strong trans-Tasman interests, rose 1.5 percent to $8.90 .Skycity Entertainment Group, which has casinos in Darwin and Adelaide, rose 1.6 percent to $3.90. Brisbane based jewellery chain Michael Hill International rose 1.5 percent to $1.39.
Telecom also fell 1.5 percent to $2.36. National carrier Air New Zealand slipped 1.2 percent to $1.70, and Sky Network Television declined 0.7 percent to $5.78.
Auckland International Airport rose 1.6 percent to $3.71. Online auction website Trade Me Group was up 1.3 percent to $4.01.
Clothing chain Hallenstein Glasson, which has dropped 38 percent in the last 12 months, slipped 1.2 percent to $3.31. Outdoor clothing retailer Kathmandu Holdings was unchanged at 3.12 percent. New Zealand’s biggest listed retailer Warehouse Group rose 0.3 percent to $3.53.