by BusinessDesk
The S&P/NZX 50 Index rose 28.21 points, or 0.2%, to 12,711.84 today. Turnover was $181 million.
One of the index’s most watched stocks, a2 Milk Company, led the gains today with a 5.7% leap to $7.01 as the infant formula exporter slowly recovers from a four-year low.
The company has appointed a former Danone executive as chief marketing officer. This is a key role for the business which primarily creates demand for products manufactured by Synlait Milk.
Edith Bailey was previously responsible for Danone’s infant nutrition category in China, Southeast Asia, and Australasia.
Australian broker Bell Potter today reiterated its ‘buy’ rating on a2 Milk, saying it saw signs that export volumes were beginning to recover. The analyst said the dual-listed stock was worth A$8.50, or roughly $9.10 on the NZX.
Infant formula manufacturer Synlait Milk didn’t share in the rally and declined 1.9% to $3.66.
Outside of the benchmark index, news publisher NZME shares surged 11.8% to 85 cents as investors continued to react to Jarden’s bullish target price of $1.04.
The analysts said Thursday the stock had a “compelling valuation with catalysts in a resumption of dividend, a buyback and greater OneRoof traction”.
Property stocks continued to rally on better economic performance and no sign of the feared decline in house prices.
Vital Healthcare Property climbed 4.1% to $3.30, Stride Property was up 3.7% at $2.55, Argosy Property gained 3.1% at $1.68, and Goodman Property rose 1.9% to $2.385.
My Food Bag recovered from a new low today, edging up 1.5% to $1.35.
The meal kit company’s share price continues to struggle despite being bought by top investment firms Milford and Harbour and being valued at more than $1.80 by three equity research firms.
Meridian Energy was the biggest drag on the index, falling 2.7% to $5.18 today.
Travel stocks also struggled as the covid outbreak in Australia continued to worsen. Tourism Holdings declined 1.6% to $2.50 and Air New Zealand dropped 1% to $1.555.
The kiwi dollar continued to track lower and was trading at 69.62 US cents at 3pm in Wellington, down from 69.89 cents yesterday.
The trade-weighted index was at 73.67 at 3pm, from 73.79 yesterday. The kiwi traded at 93.30 Australian cents from 93.31 cents, 77.70 yen from 77.62 yen, 58.79 euro cents from 58.97 cents, 50.59 British pence from 50.59 pence, and 4.5086 Chinese yuan from 4.5191 yuan.
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