by BusinessDesk
The S&P/NZX 50 Index rose 20.58 points, or 0.2%, to 12,272.48. Within the index, 29 stocks rose, 16 fell and five were unchanged. Turnover was $165.5 million.
“The big news of the day was out of Australia where they signalled the borders would be reopened at the end of October,” said Brad Gordon, an investment adviser at Hobson Wealth Partners.
The stock market was also getting support as long-dated bond yields continued to fall from 18-month highs, and was encouraged by New Zealand’s own vaccination plan announced on Wednesday, he said.
National carrier Air New Zealand had one of the day’s biggest gains, up 3.3% to $1.70, as investors were encouraged by the possibility of future flights to and from Australia.
Other stocks with travel exposure also climbed; Tourism Holdings rose 0.9% to $2.23, adventure retailer Kathmandu Holdings advanced 1.6% to $1.29, and travel booking software company Serko was up 0.9% at $5.67.
Auckland International Airport rose just 0.1% to $7.10, its muted reaction partially explained by a gloomy note from Forsyth Barr analysts warning that international travel would recover slowly even once borders reopen.
While not a travel stock as such, cinema software firm Vista Group International rose 1.1% to $1.79 as it was caught up in broader reopening sentiment.
Many cinemas in the United States have been reopening, with California’s governor suggesting Los Angeles theatres could be open next week.
Electricity utility Meridian Energy led the market higher, up 3.5% at $5.68, likely buoyed by the receding bond yields.
Fuel retailer Z Energy had the day’s biggest fall, dropping 3.6% to $2.66, after it lowered the top end of its guidance range to $245 million from $265m.
Z Energy chief executive Mike Bennetts said the jet fuel market was yet to recover from covid, recent lockdowns had reduced road volume, and oil prices had climbed.
“Oil prices rising are not good for Z Energy, having to buy high is not good for their working capital position and it squeezes margin,” Gordon said.
The kiwi dollar was trading at 72.03 US cents at 5pm in Wellington, up from 71.43 cents yesterday.
The trade-weighted index was at 75.15 at 5pm, from 74.78 yesterday. The kiwi traded at 93.02 Australian cents from 93.01 cents, 78.19 yen from 77.72 yen, 60.40 euro cents from 60.13 cents, 51.68 British pence from 51.50 pence, and 4.6779 Chinese yuan from 4.6485 yuan.
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