A2 drives share market recovery
A2 Milk Company led the share market’s recovery today after rising interest rates triggered a widespread selloff during February.
Tuesday, March 2nd 2021, 6:16PM
by BusinessDesk
The S&P/NZX 50 Index rose 42.68 points, or 0.4%, to 12,344.49. Within the index, 27 stocks rose, 17 fell, and six were unchanged. Turnover was $170 million.
It was the second day of gains for the benchmark index which dropped almost 10% during February as bond yields suddenly rose dramatically.
Today, the yield on a 10-year government bond held around 1.7% having climbed above 2% last week.
“Interest rates have consolidated after rapid rises last month and we have seen our market recover on the back of that,” said Sam Trethewey, a portfolio manager at Milford Asset Management.
Infant formula exporter A2 Milk Company was driving the recovery today, rising 5.5% to $10.02.
Trethewey said investors may have been encouraged by a filing to the NZX today which showed a top executive had not sold any shares, despite being in the post-earnings window where he was able.
Meridian Energy, which has seen sharp declines this year, recovered 4.3% at $5.89 — the renewable electricity generator traded as high as $9 during January. Genesis Energy also made gains on the day, up 3.8% at $3.65.
Vista Group International continued its rally as investors, and the company itself, looked forward to pent up demand if cinemas are able to reopen later this year. Its share rose 2.3% to $1.78.
Travel stocks were mixed; Tourism Holdings climbed 4.1% to $2.30, while Auckland Airport fell 2.9% to $7.36.
Fisher & Paykel Healthcare, the index’s largest stock, held back larger gains as it slipped 2.3% to $29.02.
Stride Property announced a cash dividend for the third quarter of 2021 of 1.7275 cents per share to be paid on 17 March. Its share price climbed 0.9% to $2.27.
Outside of the index, cervical cancer diagnostic firm Truscreen climbed 15.4% to 10.5 cents after it appointed Fisher & Paykel Healthcare’s research and development manager, Dr Dexter Cheung, as a board director.
Cheung is a specialist in product research and development and was in charge of R&D in F&P Health’s successful respiratory humidification division.
The kiwi dollar was trading at 72.51 US cents at 5pm in Wellington, down from 72.70 cents yesterday.
The trade-weighted index was at 75.28 at 5pm, from 75.43 yesterday. The kiwi traded at 93.38 Australian cents from 93.83 cents, 77.43 yen from 77.37 yen, 60.28 euro cents from 60.15 cents, 52.19 British pence from 51.99 pence, and 4.6924 Chinese yuan from 4.6952 yuan.
| « NZ shares bounce after dire February | Shares flat and dollar higher as dairy prices boom » |
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