by BusinessDesk
The S&P/NZX 50 Index rose 87.04 points, or 0.7 percent, to 12,337.02. Within the index, 36 stocks were up, eight fell and six were unchanged. Turnover was $131.8 million.
Synlait Milk shares jumped 7.6 percent to $5.50 after the company said it had settled a dispute over land used at its Pokeno site and an announcement of a new deal with a multinational customer.
Further details of the settlement agreement will remain confidential but the settlement price “was reasonable and not material to Synlait,” it said.
Grant Davies, an investment advisor at Hamilton Hindin Greene, said investors were pleased the dispute was not hanging over the company, even if the settlement wasn’t material.
“It is good from an investors perspective to have that proverbial monkey off their back and they can push on with growing the business,” he said.
It was a similar story for wider equity markets as they continued to run higher following the US election. The fact a final winner still has not emerged in either the presidency or the Senate has not phased investors.
The market has continued to rise as results slowly roll in, with a Biden victory and a Republican Senate still the clear favourite outcomes. As a result, US political gridlock is on the cards.
“There won’t be wholesale legislative changes over there and the market is appreciating that,” said Davies.
Indices on Wall Street were up about 2 percent on Thursday night, Australia’s S&P/ASX 200 was up 0.7 percent today, and the NZX 50 has risen 2.2 percent across the week.
On the local index, electricity firms caught the attention of investors today. Meridian Energy rose 4.8 percent to $5.65, Contact Energy, with an annual meeting next week, was up 1.6 percent to $7.75. Mercury NZ advanced 1.9 percent.
A2 Milk Company, a key Synlait customer, also climbed 3.2 percent to $14.81.
Pushpay Holdings recovered 3.7 percent to $8.44 as it found support after an 11 percent sell off on its half-year earnings result.
The retirement sector was also strong. Ocean Healthcare gained 3 percent at $1.36, Ryman Healthcare rose 1.4 percent to $14.70 and Summerset Group Holdings was up 1.3 percent at $14.70.
Metlifecare - which is now delisted following a private equity takeover - announced its new board had voted to repay the government wage subsidy.
The market rally was broad-based with fewer than ten stocks weaker. Among them was Argosy Property, which fell 2 percent to $1.44, Goodman Property down 0.8 percent at $2.45 and Precinct Properties, which lost 0.6 percent to $1.74.
But the biggest decline was Fisher & Paykel Healthcare, which fell 2.1 percent to $36.11 as it continues to bounce around near record highs.
Investors in the respiratory machine exporter may have been discouraged by the kiwi dollar, which climbed to its highest level since mid-September, hitting 67.80 US cents before easing back to 66.76 cents at 5pm in Wellington.
The US dollar fell amid the broad lift in equities.
The trade-weighted index was at 72.06 at 5pm, from 71.67 yesterday. The kiwi traded at 93.39 Australian cents from 93.38 cents, 70.08 yen from 69.87 yen, 57.31 euro cents from 57.09 cents, 51.62 British pence from 51.71 pence, and 4.4948 Chinese yuan from 4.4558 yuan.
| « Equities markets rallied despite US election uncertainty | NZX 50 hits record; kiwi dollar at 18-month high » |
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