by BusinessDesk
The S&P/NZX 50 Index rose 42.14 points, or 0.3%, to 12,577.48. Within the index, 25 stocks fell, 14 rose and 11 were unchanged. Turnover was $126 million.
Global market sentiment appeared to have “perked up” overnight without any obvious drivers, said BNZ interest rate strategist Nick Smyth.
“After two straight down days, equity markets have rebounded overnight, with the market still seemingly in ‘buy the dip’ mode”, he said.
The NZ market followed the decline yesterday but only bounced today due to a huge share price jump for Fisher & Paykel Healthcare which rose 4.2% to $34.40 on a lighter-than-usual volume.
Chorus and Kathmandu Holdings both had strong gains, up 2.3% at $6.68 and $1.39, respectively.
Tourism Holdings today told investors it expects its net loss for the full year 2021 will be between $14m to $18m, significantly lower than an average analyst estimate of $21.5m. Its share price rose 1.9% to $2.75.
The NZ rental vehicle business will remain loss-making without international tourist, however, the company said there had been an increase in web search activity with the opening of the trans-Tasman travel bubble.
“We expect that this will convert to increased forward bookings as travellers continue through the holiday planning cycle,” they said in a note.
A2 Milk Company dropped 1% to $8.23 after Australian share broker Morgans hacked more than $2 from its target price and warned a fourth earnings downgrade was possible.
An analyst said industry feedback suggests there has been no improvement in the operating environment and increased competition from Chinese companies was adding to the pressure.
Eroad climbed 1.6% to $5.64 after Jarden said signs of recovery in the US was encouraging for the fleet services provider. The broker raised its target price to $5.49, from $4.90.
“We believe valuation upside is significant if Eroad can demonstrate stronger traction in its offshore markets over the mid-term,” an analyst wrote.
QEX Logistics said it will try to delist from the NZX as it is unable to replace the independent directors who resigned in February.
The infant formula exporter was suspended from trading in mid-February as it does not meet the listing rules without independent shareholder representatives on its board.
The kiwi dollar was trading at 71.90 US cents at 5pm in Wellington, up from 71.72 cents yesterday.
The trade-weighted index was at 74.88 at 5pm, from 74.81 yesterday. The kiwi traded at 92.84 Australian cents from 92.96 cents, 77.65 yen from 77.46 yen, 59.74 euro cents from 59.61 cents, 51.60 British pence from 51.47 pence, and 4.6595 Chinese yuan from 4.6575 yuan.
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