tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo close ad
tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Sunday, November 28th, 11:59AM

Investments

rss
The Markets

Second vaccine sees investors eye recovery

New Zealand shares edged higher as a second promising vaccine caused investors to shift money into mid-size companies that have been slower to recover from the pandemic.

Tuesday, November 17th 2020, 5:56PM

by BusinessDesk

The S&P/NZX 50 Index rose 20.11 points, or 0.2 percent, to 12,765.03. Within the index, 29 stocks rose, 15 fell and six were unchanged. Turnover was $219.9 million.

Offshore markets were buoyed by news about Moderna’s vaccine, which a 30,000-patient study showed to be 94 percent effective, it is also easier to distribute than Pfizer’s version.

Only five patients who received the vaccine later developed covid-19, while in the control group there were 95 infections.

The news generated a reasonably modest reaction as markets had already climbed significantly on the Pfizer news last week.

In the local market, Fisher & Paykel Healthcare and several large utility companies cancelled the gains made by small companies who are still hampered by the virus.

“The ones that have benefitted during the pandemic are being sold off and there is a move towards reopening stocks,” said Greg Smith, head of research at Fat Prophets.

The dual-listed Australian banks led the market higher on a light volume. Banking is closely tied to economic conditions which are currently struggling due to the pandemic.

Australia and New Zealand Banking group rose 3.1 percent to $23.09 and Westpac Banking Corp advanced 2.8 percent to $20.25.

Z Energy jumped 2.8 percent to $3.27 as investors bet the vaccine would help clear a path for fuel volumes to recover to pre-covid levels. With international travel on hold, lower jet fuel consumption has been hurting revenue.

Air New Zealand increased 2.7 percent to $1.69 for the same reason. Smith said the stock had potential to push even higher, although it would remain below its pre-covid price of $2.80 for a long time.

Kathmandu Holdings climbed 2.4 percent to $1.29, SkyCity Entertainment was up 2 percent at $3.10, and Auckland International Airport rose 1.8 percent to $7.79.

Meridian Energy posted the day’s biggest fall, dropping 3.5 percent to $6.08, while internet utility firm Chorus also fell 2.8 percent to $8.60,

Smith said yield stocks held slightly less appeal after the market concluded the Reserve Bank had backed away from its plan to implement negative interest rates last week.

The index’s biggest stock, Fisher & Paykel Healthcare declined 1.2 percent to $34.20.

Investore Property rose 0.9 percent to $2.25 after reporting a 9.4 percent portfolio valuation gain to a shade off $1 billion, at $980.3 million.

Chair Mike Allen said the performance was testament to its focus on large format and retail property, and resilience to the impacts of covid-19.

The currency moves also reflected the confidence sentiment. Investors sold off the safe US dollar in favour of riskier assets, pushing the kiwi as high as 69.18 US cents.  

The kiwi dollar settled in the afternoon and was trading 69.02 US cents at 5pm in Wellington, up from 68.77 cents yesterday.

The trade-weighted index was at 72.99 at 5pm, from 72.84 yesterday. The kiwi traded at 94.28 Australian cents from 94.35 cents, 72.12 yen from 71.88 yen, 58.20 euro cents from 58.02 cents, 52.19 British pence from 51.98 pence, and 4.5328 Chinese yuan from 4.5251 yuan.

Tags: Market Close

« NZ shares and dollar rise as optimism lingersA2 Milk ends 11-day share market rally »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

AM Update - Your morning business news update

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.65 4.35 4.69
ANZ ▲4.79 ▲4.25 ▲4.95 ▲5.35
ANZ Blueprint to Build ▲2.03 - - -
ANZ Special - ▲3.65 ▲4.35 ▲4.75
ASB Back My Build 2.04 - - -
ASB Bank 4.45 3.65 4.35 4.69
Avanti Finance 4.55 - - -
Basecorp Finance 5.49 - - -
Bluestone 3.74 3.54 3.89 4.09
BNZ - Classic - ▲3.65 ▲4.35 ▲4.69
BNZ - Mortgage One 5.15 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Rapid Repay ▲4.95 - - -
BNZ - Std, FlyBuys ▲4.95 ▲4.25 ▲4.95 ▲5.29
BNZ - TotalMoney ▲4.95 - - -
CFML Loans 5.15 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 3.59 4.09 -
Heartland Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 5.25 4.00 4.60 -
HSBC Premier 4.49 2.19 2.45 2.69
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 4.15 ▲3.29 3.85 4.19
Kainga Ora 4.43 2.88 3.28 3.59
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 4.05 4.34 5.00 5.34
Kiwibank - Offset 4.00 - - -
Kiwibank Special 4.05 3.49 4.15 4.49
Liberty 4.84 - - -
Nelson Building Society 4.95 3.99 4.59 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.39 3.54 3.89 4.09
SBS Bank 4.79 3.65 4.19 4.25
SBS Bank Special - 3.15 3.69 3.75
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - 3.29 - -
The Co-operative Bank - Owner Occ 4.55 3.49 4.15 4.49
The Co-operative Bank - Standard 4.55 3.99 4.65 4.99
TSB Bank 5.34 4.09 4.74 4.99
TSB Special 4.54 3.29 3.94 4.19
Unity 5.65 4.15 4.60 -
Wairarapa Building Society 4.99 3.55 3.89 -
Lender Flt 1yr 2yr 3yr
Westpac ▲5.09 4.25 4.95 5.29
Westpac - Offset ▲5.09 - - -
Westpac Special - 3.65 4.35 4.69
Median 4.67 3.59 4.27 4.49

Last updated: 26 November 2021 9:41am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com