by BusinessDesk
The S&P/NZX 50 Index rose 87.11 points, or 0.7%, to 12,487.59. Within the index, 23 stocks rose, 22 fell, and five were unchanged. Turnover was $271 million.
Overnight, the International Monetary Fund lifted its forecasts for global growth now forecasting a 6% expansion in 2021, which would be the faster rate in decades.
“Global prospects continue to look up, buoyed by vaccine rollouts and the massive dollop of policy stimulus,” said Mark Smith, an economist at ASB Bank.
Smith said market movements in foreign markets were modest overnight, although major US stock indices were hovering near record highs.
Kiwi stocks with an international focus saw strong gains. Global exporter Fisher & Paykel Healthcare led the market higher, gaining 3.5% to $32.42, while A2 Milk was up 2.4% at $8.56.
US-focused church management platform Pushpay Holdings climbed 3.5% to $2.08, and Restaurant Brands – which has US stores – rose 3.4% to $13.35.
Renewable electricity generators recovered after a big sell down yesterday as investors predicted a share price fall when a clean energy index is reweighted later in the month.
Questions have since been raised about exactly how much of an impact the revised index will have.
Meridian Energy was up 2.3% to $5.37, Contact Energy rallied 2.2% to $6.94 and Mercury NZ rose 1.9% to $6.37.
The Global Dairy Auction overnight saw a repeat of the high price for whole milk powder, which is the main driver of Fonterra farmgate milk prices.
Fonterra Shareholders’ Fund dropped 4.4% to $4.58. The strong auction indicates demand for the product but also raises the input cost for the co-operative.
The kiwi dollar was trading at 70.56 US cents at 5pm in Wellington; little changed from 70.54 cents yesterday.
There was little economic news allowing another quiet session with risk appetite governing direction.
The soon-to-open travel bubble has been supportive for the kiwi as more tourism spending is likely to underpin further economic recovery.
The trade-weighted index was at 74.02 at 5pm, from 74.10 yesterday. The kiwi was trading at 92.18 Australian cents from 92.27, 77.47 yen unchanged from yesterday, 59.44 euro cents from 59.74 cents, 51.05 British pence from 50.70 pence, and 4.6153 Chinese yuan from 4.6199 yuan.
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