Property stocks hit records

New Zealand’s benchmark equity index was marginally higher today as stocks exposed to the housing market picked up steam, with Stride Property hitting an all-time high.

Thursday, July 1st 2021, 6:56PM

by BusinessDesk

The S&P/NZX 50 Index rose 29.03 points, or 0.2%, to 16,683.63. Turnover was $220 million.

Argosy Property led the market higher, gaining 4.5% to $1.63, followed by Stride Property which climbed 2.9% to $2.46. Both stocks are at record highs today after several days of gains.

Westpac’s acting chief economist, Michael Gordon kicked off the week by upgrading the bank’s house price forecasts on Monday.

A stronger than expected economy and a review of mortgage rate modelling means that Westpac now doesn’t expect property prices to decline until late 2022, Gordon said.

Property stocks have been edging higher all week, with many making near 5% gains over the past four days.

Today, Vital Healthcare climbed another 2.4% to $3.17, Kiwi Property gained 1.3% at $1.18, Ryman Healthcare was up 2.4% at $13.44, and Arvida Group rose 2% to $2.08.

Auckland Airport shares dropped 0.7% to $7.22 after chief executive Adrian Littlewood said covid outbreaks in Australia had dented passenger confidence, as they posed a risk to largely unvaccinated populations such as NZ.

“Emerging overseas evidence points strongly to widespread vaccination being the path to protecting communities against the virus. Where this is being achieved, it is leading to a strong revival of the aviation sector,” he said.

The airport has left its full year earnings guidance – a net loss between $35m and $55m – unchanged but warned passenger volumes may remain very subdued for the rest of the calendar year.

Air New Zealand released operating statistics which showed it carried 101,000 people across the Tasman during May, and 844,000 passengers in total. Its shares climbed 1.3% to $1.57.

Shares in media company NZME climbed 1.3% to 76 cents after Jarden’s equity research team recommended the stock as a buy with a target price of $1.04.

“We believe the market is undervaluing the strength of NZM's publishing franchise, the resilience of the radio business and the optionality in OneRoof,” the analysts wrote.

Jarden was less bullish about Sky Network Television, reiterating their ‘underweight’ rating on the media stock. Its shares declined 1.7% to 17.1 cents today.

The kiwi dollar was trading 69.89 US cents at 5pm in Wellington, down from 69.98 cents yesterday.

The trade-weighted index was at 73.79 at 5pm, from 73.74 yesterday. The kiwi traded at 93.31 Australian cents from 93.10 cents, 77.62 yen from 77.31 yen, 58.97 euro cents from 58.77 cents, 50.59 British pence from 50.50 pence, and 4.5191 Chinese yuan from 4.5188 yuan.

Tags: Market Close