Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


MARKET CLOSE: NZ shares extend gain

MARKET CLOSE: NZ shares extend gain as passive funds bolster prices; Tourism Holdings climbs

By Paul McBeth

July 19 (BusinessDesk) - New Zealand shares remained in record territory as passive investment funds appeared to support the upward trend in school holiday-affected trading. Tourism Holdings led the market higher when it resumed trading.

The S&P/NZX 50 Index increased 12.06 points, or 0.1 percent, to 10,753.15. Within the index, 27 stocks rose, 18 fell, and five were unchanged. Turnover was $97 million, with just four companies trading on volumes of more than a million shares.

Trading has been quieter than usual over the school holiday period and almost half the transactions through the exchange in recent days have been in the 15-minute match period before the market closes.

Matt Goodson, managing director at Salt Funds Management, said that suggested passive investment funds had an outsized influence on the market, which hit a record 10,783.18 in intraday trading today.

"They don't care what price they pay for anything and that's quite a factor at the moment," he said. "When you get such strong price momentum, you do get trend followers jumping on board as well."

New Zealand's benchmark index has gained 22 percent so far this year. it is the second-best performer across Asian indices tracked by Refinitiv, behind a 27 percent increase on the Shanghai Shenzhen CSI 300 Index.

NZX rose 1.7 percent to $1.20 on a volume of 1.1 million shares, almost three times its 352,000 average. The stock market operator is trading at its highest level since August 2017, having welcomed its first initial public offering for almost two years last month in Cannasouth. It is poised to add another when Napier Port lists in August.

Tourism Holdings led the market higher, up 5.1 percent at $4.14 on a volume of 346,000 shares, more than its 90-day average of 172,000. Trading was halted yesterday to offer the remaining shares from a rights offer to investors in a shortfall bookbuild. The shares cleared at $3.88 in the bookbuild, a 48-cent premium.

Arvida Group had a similar experience yesterday, with a clearing price of $1.35 in a shortfall bookbuild, a 20-cent premium. It was unchanged at $1.38 today.

Ryman Healthcare rose 1.7 percent to $13.20 on a volume of 535,000 shares, more than its 477,000 average. Goodson said the country's biggest listed retirement village operator had diverged from the rest of the sector since a very large trade earlier this week.

Summerset Group increased 0.2 percent to $5.73 and Metlifecare advanced 0.2 percent to $4.35.

A2 Milk Co increased 0.4 percent to $16.85 on a smaller volume than usual of 507,000 shares. Synlait Milk, which supplies A2, increased 1.6 percent to $9.79.

Chorus was the day's most traded stock on a volume of almost 3 million shares, compared to its 476,000 average. The stock fell 0.7 percent to $5.44.

Kiwi Property Group increased 0.6 percent to $1.615 on a volume of 1.8 million shares, and Precinct Properties New Zealand was up 0.3 percent at $1.78 with 1 million shares changing hands. Spark New Zealand fell 0.3 percent to $3.93 on an unusually small volume of 813,000 shares, well down on its 4.2 million average.

New Zealand Refining posted the day's biggest decline, down 1.9 percent at $2.11 on a volume of 261,000 shares, in line with its 213,000 average. The Marsden Point refinery operator's latest operating figures showed weaker global refining margins in May and June, which Goodson said was in line with expectations.

A number of yield stocks were weaker, with Contact Energy down 1.3 percent at $7.79, Argosy Property falling 1.1 percent to $1.405, Genesis Energy declining 0.9 percent to $3.45 and Auckland International Airport slipping 0.6 percent to $9.60. Meridian Energy decreased 0.4 percent to $4.88.

Vector was unchanged at $3.84 after reporting weaker volumes due to milder weather in the June quarter, while connection growth was in line with expectations.

Heartland Bank's 2024 bonds paying annual interest of 3.55 percent were the most traded debt security with a volume of 1.7 million. The notes closed at a yield of 3.02 percent, down 2 basis points. Heartland Group Holdings shares fell 0.6 percent to $1.68.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Energy Sector: Meridian Spilled Water To Hike Electricity Prices - Authority Ruling

The Electricity Authority has found that generator Meridian Energy manipulated the power market, costing consumers about $80 million. More>>


XE Data Update: RBNZ Official Cash Rate Decision

The RBNZ will keep the Official Cash Rate (OCR) at 0.25%. T he key points in the RBNZ statement are: RBNZ keeps the OCR unchanged at 0.25% Maintain the LSAP (large scale asset purchase) at NZD$60 billion. Committee prepared to use additional monetary ... More>>


Electricity: Kiwis Ignore Promise Of Cheaper Power

Electric Kiwi and Flick Electric Co are joint winners of Canstar Blue’s award for Most Satisfied Customers | Electricity Providers From putting on an extra layer – rather than turning on a heater – to turning off lights and choosing the energy-saving ... More>>


Economy: COVID-19 Contributes To 1.6 Percent Fall In March Quarter GDP

Gross domestic product (GDP) fell 1.6 percent in the March 2020 quarter, the largest drop in 29 years, as the initial effects of COVID-19 restrictions impacted on economic activity, Stats NZ said today. This quarter’s GDP results showed a widespread drop ... More>>


Electricity: Transmission Pricing For A Low Carbon Future

The Electricity Authority has decided on new guidelines for transmission pricing. James Stevenson-Wallace, Chief Executive of the Electricity Authority says the new guidelines will deliver significant benefits to consumers, through lower electricity ... More>>


ASB: Investor Confidence Falls To Four-Year Low

As the world grapples with the fallout from the most significant pandemic the world has seen in a century, economic concerns are weighing on investors, dragging investor confidence down to a four-year low in the first quarter of the year. For the three ... More>>


Science Media Centre: Funding For R&D In New Zealand – Expert Reaction

Research, Science and Innovation Minister Dr Megan Woods has today announced $401.3 million funding for research and development through Budget 2020 and the COVID Response and Recovery Fund. The fund includes $150 million for an R&D loan scheme, ... More>>


Science: 2019 Prime Minister’s Science Prizes Announced

The 2019 Prime Minister’s Science Prizes have been announced in a digital livestream event today. The Prizes recognise the impact of science on New Zealanders’ lives, celebrate the achievements of current scientists and encourage scientists of the ... More>>


RNZ: Fuel, Alcohol Costs To Go Up From Today

The increase today in the taxes on fuel, road user charges and alcohol is being called a tone-deaf move. More>>


Stardome Observatory: Young Kiwi Astro-Photographer Shoots For The Stars

Matariki by Josh Kirkley. The stars are aligning for up-and-coming Auckland-based astro-photographer Josh Kirkley (Kāi Tahu). During lockdown, one of his images was picked up by NASA and shared on the space agency’s Instagram to its 59.2 million ... More>>

DCANZ: Time For EU To Commit To A Level Playing Field For Trade

The Dairy Companies Association of New Zealand (DCANZ) has welcomed New Zealand Trade Minister David Parker’s statement that it is unacceptable for New Zealand exporters to continue facing an ‘unlevel playing field’ in the EU. Details leaked ... More>>


Potatoes New Zealand: Protecting NZ Fries As Part Of PNZ Pandemic Recovery & Transformation Plan

Potatoes New Zealand has met with Minister Faafoi this week to discuss investigating the potential importation of heavily discounted frozen potato chips into New Zealand. With MBIE’s support we are undertaking an investigation to gather evidence of the ... More>>


New Zealand Government: Supporting Kiwi Businesses To Resolve Rent Disputes

The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. More>>


Science Media Centre: Understanding 5G Concerns – Expert Q&A

Recent attacks on cell phone towers have brought concerns over the rollout of 5G technology into sharp relief.
While scientific research has consistently shown that the technology does not adversely affect human health, public concerns about its impact have spread around the world, fueled in part by growing misinformation online. The SMC asked experts to comment... More>>


Trade: Record Monthly Surplus As Imports Dive

Imports in April 2020 had their biggest fall since October 2009, resulting in a monthly trade surplus of $1.3 billion, Stats NZ said today. “This is the largest monthly trade surplus on record and the annual goods trade deficit is the lowest ... More>>