by BusinessDesk
The S&P/NZX 50 Index advanced 96.96 points, or 0.8 percent, to 12,453.85. Within the index, 28 stocks rose, 15 fell and seven were unchanged. Turnover was $181.5 million.
The market has been making steady gains throughout October, adding 6 percent to the benchmark index, as investors expected US fiscal stimulus and possibly a vaccine to emerge during the quarter.
Australia & New Zealand Banking Group led the local market higher, gaining 3.6 percent to $21.11, with Westpac Banking Corp also up 3.1 percent at $20.55.
Brad Gordon, an investment adviser at Hobson Wealth Partners, said banks were still recovering from their lows as the economic outlook improves with stimulus and a vaccine appearing on the horizon.
“There is a big part of the market that is still flagging value, so people are trying to prepare themselves to be on the right side of that because some stocks still have potential to run hard,” he said.
Ebos Group rose 2.4 percent to $26.00 after reporting its trading in the first quarter of the 2021 financial year exceeded expectations, with group revenue growing 6.5 percent and net profit up 15 percent.
A2 Milk Company rose 2.4 percent to $16.12, as the stock continues to recover from a harsh sell-off when it downgraded its first-half earnings in September.
“I think even the worst-case scenarios are now priced in, so if management do maintain their guidance then there is significant upside from this level,” Gordon said.
The index’s other heavyweight stock, Fisher & Paykel Healthcare, also rose 1.9 percent to $35.36 helping to drive market gains.
Internet infrastructure firm Chorus climbed 0.7 percent to $8.81, after the Commerce Commission released a report detailing new regulation for fibre services in New Zealand that seemed more favourable for the company than the initial draft.
Matt Henry, an analyst at Forsyth Barr, said the changes were not that drastic for Chorus, and consumer prices were unlikely to rise.
“Every time the Commerce Commission raises its head a segment of the market freaks out,” Gordon said.
Property stocks saw some support after Real Estate Institute of New Zealand data showed house prices jumping 11.1 percent and the number of sales up 37.1 percent.
Summerset Group Holdings rose 2.2 percent to $9.98, Kiwi Property Group climbed 2.1 percent to $1.195 and Ryman Healthcare was up 1.9 percent at $15.17.
Heartland Group Holdings, which offers home loans, rose 1.4 percent to $1.42.
Vista Group International posted the day’s biggest decline, falling 4.3 percent to $1.57 with the global cinema industry still under pressure from the pandemic.
The kiwi dollar was trading 66.42 US cents at 5pm in Wellington, down from 66.63 cents yesterday, drifting lower as a correction in the Chinese yuan dampened demand.
The trade-weighted index was at 71.34 at 5pm, unchanged from yesterday. The kiwi traded at 92.57 Australian cents up from 92.18 cents, 70.00 yen from 70.27 yen, 56.32 euro cents from 56.38 cents, 50.93 British pence from 51.12 pence, and 4.4849 Chinese yuan from 4.4770 yuan.
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