NZ sharemarket rises as investors return to blue-chip stocks

The mood of the New Zealand sharemarket improved with investors back buying blue-chip stocks and Hallenstein Glasson reaching a three-year high.

Thursday, October 3rd 2024, 6:48PM

by BusinessDesk

The S&P/NZX 50 Index increased 120.97 points or 0.97% to 12,572.66 while the major United States and Australian indices were flat and the Chinese – recently boosted by an economic stimulus – were closed for the Golden Week public holiday.

Trading was lower in the school holidays with 31.64 million share transactions worth $118.37m.

David McConnochie, investment adviser with Forsyth Barr, said it was a solid day for the local market driven by moves in large cap, quality stocks.

He said wholesale interest rates continue to fall – the three-year swap was down to 3.45% from 4.67% at the start of July – and that market was pricing a reduction in the official cash rate (OCR) from 5.25% to 4.25% over the next year.

NZ primary producers are finding life better with the ANZ World Commodity Price Index increasing 1.8% in September. Stronger prices were recorded for all major sectors except forestry.

On a global basis, dairy prices were up 2.3% on increasing demand with whole milk powder increasing 24% and butter prices rising 42%. Meat and fibre prices were up 1.4% for the month and 18.3% for the year.

Lamb strengthened 5% but prices are still weak, while beef returns are stronger though prices softened in September.

The horticulture index was up 3.3% and kiwifruit prices increased 5% despite larger volumes for export. The quality of SunGold kiwifruit is the best seen in five years and demand has strengthened in China and parts of Europe.

Forestry was down 3% last month but usage of logs increased in China and export volumes are likely to increase. Aluminium prices were up 4.5% and are now 12.5% higher than a year ago.

On the market

Amongst the leading stocks, Fisher and Paykel Healthcare was up 69c or 1.96% to $35.84; Ebos Group gained 49c to $36.90; and Meridian Energy collected 20c or 3.45% to $5.94.

Freightways rose 45c or 4.97% to $9.50; Auckland International Airport added 9c to $7.49; and Spark, which has fallen 40% this year, increased 10c or 3.33% to $3.105.

Fletcher Building, in the middle of its capital raise, was up 11c or 3.61% to $3.16; Skellerup Holdings, ex-dividend, gained 7.5c to $4.50; Scales Corp improved 11c or 2.96% to $3.83; and Fonterra Shareholders’ Fund increased 8c or 1.77% to $4.59.

Hallenstein Glasson broke through the $7 mark after gaining 14c or 2.01% to a three-year high of $7.10. Its share price was $7.05 in early December 2021. Fellow retailers Michael Hill gained 2c or 3.85% to 54c, and The Warehouse was down 3c or 2.63% to $1.11.

Pacific Edge rebounded 1c or 6.9% to 15.5c; NZ King Salmon Investments was up 1.5c or 6.38% to 25c; Air NZ added 1c or 1.9% to 53.5c; Cooks Coffee rose 4.5c or 18% to 29.5c; Blackpearl Group gained 5c or 3.7% to $1.40; and Vulcan Steel was up 15c or 1.85% to $8.25.

In the property sector, Vital Healthcare Trust added 4c or 2.19% to $1.87; Argosy was up 2.5c or 2.37% to $1.08; and Property for Industry was down 4c or 1.81% to $2.17.

Profit-taking carved 23c or 2.04% off Gentrack to $11.07. Sanford was down 7c or 1.86% to $3.70; a2 Milk eased 10c to $6.87; Santana Minerals fell 22c or 9.17% to $2.18; and Move Logistics declined 1.5c or 7.14% to 19.5c.

NZ Rural Land decreased 2c or 2.13% to 92c; Solution Dynamics shed 10c or 7.87% to $1.17; and Third Age Health declined 9c or 4.41% to $1.95.

TruScreen, up 0.001c or 5.26% to 2c, said its ultra cervical cancer screening device has been included in the technology landscape report by Unitaid, a World Health Organisation agency.

The latest NZX statistics showed a 15.6% increase in total trades to 937,136 during September, with total value up 16.1% to $3.824 billion.

The average on-market trade size was $2,794, up 33.4%. The total capital listed and raised in September was $2.903b and year to date $11.436b – an 11.1% fall year-on-year. The NZX share price was down 3c or 2.33% to $1.26.

Tags: Market Close