by BusinessDesk
The benchmark index rose 352.50 points, or 3.2 percent, to 11,524.16. It is now 0.1 percent higher than it started the year.
Within the index, 45 stocks rose, three fell, and two were unchanged. Turnover was $147.3 million with trading somewhat subdued with the Australian market closed for the Queen's Birthday holiday.
Stronger-than-expected US jobs data buoyed stocks on Wall Street on Friday, setting a strong tone for Asian equities markets.
Peter McIntyre, an investment adviser at Craigs Investment Partners, said the US jobs numbers “set the market alight,” fuelling a recovery already supported by low interest rates and central government support.
“It is just unreal, how the market has recovered so quickly,” he said. “It has taken every little bit of news the economy has opened with glee and risen accordingly.”
Prime Minster Jacinda Ardern today said the few remaining covid-19 restrictions would be lifted tonight - two days earlier than many commentators had predicted.
McIntyre said the most beat-up companies took centre stage on the market today.
Kathmandu Holdings led the market higher, up 11.5 percent at $1.36, with 9 million shares traded. The retailer is expected to benefit from the lifting of restrictions on its retail stores.
Air New Zealand rose 9.2 percent to $1.79. McIntyre said investors had confidence in the carrier’s 800-day plan, despite capacity not being expected to recover during that time.
“Markets like certainty and I think they like the certainty that Air New Zealand will still be here in 800 days,” he said.
Auckland International Airport increased 3.6 percent to $7.21.
Metlifecare climbed 6.5 percent to $4.62 after issuing a notice of meeting where it will ask shareholders to back its litigation against buyout suitor EQT. The retirement village operator today said underlying profit remains on track to be about $88 million in the 12 months ending June 30, compared to $90.5 million a year earlier.
Oceania Healthcare rose 8.4 percent to $1.03, Arvida Group increased 5.8 percent to $1.45 and Summerset Group was up 4.8 percent at $6.75.
Fisher & Paykel Healthcare gained 6.8 percent at $30, despite a stronger kiwi dollar trimming the value of its export receipts. A2 Milk Company rose 4.2 percent to $19.80.
Chorus posted the day’s biggest decline, falling 1.8 percent to $7.81. Only two other top-50 stocks fell, Pushpay down 0.3 percent at $7.04 and Port of Tauranga down 0.3 percent at $7.30.
Outside the benchmark index, The Warehouse Group rose 4.2 percent to $2.24. The retail group today said it was seeing strong trading due to pent up demand but did not expect it to last as job losses are expected to mount. Nine stores will be closed and the retailer plans to lay off up to a thousand staff.
McIntyre said the retailer's update provided a dose of reality to the jubilant trading, which he said had run ahead of the recovery.
“They are concerned about unemployment levels and the general state of the economy which the share market is showing no real correlation to at the moment,” he said.
| « NZ shares fall as kiwi dollar weighs on offshore earners | Strong kiwi weighs on exporters pushing sharemarket down » |
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