by BusinessDesk
The S&P/NZX 50 index increased 59.58 points, or 0.53%, to 11,290.340.
Across the main board, 70 shares rose and 60 fell. Turnover was $95 million.
Over the weekend, it was reported a former senior official said China would reopen its border with Hong Kong later this year, and a meeting between president Xi Jinping and German chancellor Olaf Scholz took place in which vaccines were discussed.
Those events were interpreted by many as signs the world’s second-biggest economy was preparing to soften its strict covid restrictions.
Devon Funds head of retail Greg Smith said the prospect of New Zealand’s largest trading partner reopening had increased investor sentiment.
“China is our biggest customer. What’s good for them is good for us,” he said.
Job data out of the US, which saw the unemployment rate increase to 3.7%, was also helping sentiment.
Smith said that could see the Federal Reserve ease its rate hikes to 50 basis points in December.
Over the weekend, the New Zealand dollar jumped as much as 3.4% on the speculation.
The NZ dollar traded at 58.91 US cents at 3pm in Wellington from 57.71 cents on Friday, with the trade-weighted index at 70.62c up from 69.88c last week.
Kiwibank chief economist Jarrod Kerr told BusinessDesk there was strong support for the NZ dollar at 55 US cents and it could easily trade above 60 cents on more positive news from Asia.
China-reliant companies increased on the local market amid the speculation today with A2 Milk up 1.5% to $5.99.
Synlait Milk was up 1.2% to $3.18.
Other potential beneficiaries of an open China also rose, including Auckland Airport up 2.6% to $7.66.
Air New Zealand, which flew to China before covid, was also up 0.62% to 81c.
Elsewhere on the market, the biggest increase on the top 50 was transport software company Eroad climbing 12.2% to $1.38 after it increased the lower end of its revenue guidance to between $154m and $164m after securing and renewing overseas contracts in the lucrative North American market.
Heartland Group Holdings was up 1.75% to $1.74 and Stride Property was up 1.9% to $1.61.
Outside the top index, the biggest increase was Gentrack Group, up 7.8% to $1.65. Rakon was up 5% to $1.26.
Metro Performance Glass was up 4.8% to 21c.
Vista Group International was the biggest decliner in the top 50, down 5% to $1.50.
Westpac Banking Corporation, after reporting a $1.05b annual profit, was down 3% to $25.45.
Travel software provider Serko was down 2.5% to $2.69.
NZ King Salmon continued its decline, down 2.2% to 22c.
Cooks Coffee Company was the biggest decliner across the whole main board, down 9.7% to 32c.
| « NZ share market moves higher into weekend | Australian consumer sentiment, China drag market down » |
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