by BusinessDesk
The S&P/NZX 50 Index increased 16.02 points, or 0.1 percent, to 11,307.98, Within the index, 20 stocks rose, 20 stocks fell, and 10 were unchanged. Turnover was $115.8 million.
Finance Minister Grant Robertson yesterday unveiled an extra $12 billion of capital spending over the next five years, more than half of which was set aside for as-yet-unnamed road and rail projects.
Michael McCarthy, chief market strategist at CMC Markets, said the fiscal stimulus was really important and something that central bankers around the world have been clamouring for.
“The budget update really is a plus for shareholders and that’s one of the reasons why the NZX50 is able to hold the giddy heights at the moment,” he said.
Courier operator and information management firm Freightways, often seen as a bellwether for the economy, rose 3 percent to $8.55, while global logistics group Mainfreight was up 0.5 percent at $41.90. Construction firm Fletcher Building increased 0.2 percent to $5.25 on a volume of 1.4 million shares.
McCarthy said Fisher & Paykel Healthcare continued its strong run this year, up 2.4 percent at $22.11. A2 Milk rose 1.2 percent to $15.30.
Port of Tauranga rose 1 percent to $6.92. Associate Transport Minister Shane Jones today said the government will decide by the middle of next year on the future of Auckland’s downtown port operations. Marsden Maritime Holdings, which jointly owns Northport with Port of Tauranga, fell 2.1 percent to $7.
Restaurant Brands New Zealand led the market higher, up 4 percent at $11.96 on a volume of just 16,000 shares, short even of its 90-day average of 46,000.
McCarthy said there wouldn’t be too much company-specific news over the next month or so, meaning investors would watch global markets for their cues.
The upcoming UK election and where China and the US end up in their protracted trade negotiations continued to weigh on investors, he said.
Dual-listed Westpac Banking Corp fell 1.4 percent to $25.15 after the board weathered a storm of shareholder disapproval at today’s annual meeting in Sydney that was still going as trading in New Zealand closed.
Australia & New Zealand Banking Group was down 1.2 percent at $25.32. Its New Zealand subsidiary has been ordered to improve its director attestation framework after an independent report found the bank’s processes weren’t up to scratch. ANZ New Zealand has until June 2021 to have an external party confirm its implemented a raft of improvements.
Air New Zealand was unchanged at $2.80. The national airline’s alliance partner Cathay Pacific will operate the Hong Kong-Auckland route for the next three months, freeing up capacity in Air New Zealand’s operations as it deals with the global maintenance issues.
Auckland International Airport fell 0.8 percent to $8.93 with 1.1 million shares traded. Government data today showed international visitor numbers rose at their slowest annual pace in an October year since 2012.
Ryman Healthcare fell 2.5 percent to $15.45 on a volume 187,000 shares, in the day’s biggest decline.
Spark New Zealand was the most traded stock with 3.3 million shares changing hands. It rose 0.2 percent to $4.34. Meridian Energy dipped 0.4 percent to $4.98 on a volume of 1.2 million.
Outside the benchmark index, NZME climbed 3.7 percent to 42 cents. The publishing company won over coalition government partner NZ First in its bid to side-step competition law with a Kiwishare obligation to let it buy ailing rival, Stuff. Chief executive Michael Boggs told reporters he was sure a deal could be profitable enough to satisfy shareholders.
| « NZ shares nudge higher; ports gain ahead of Northport study | Z Energy sinks on profit warning » |
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