Market close: Sharp rise for NZ market despite rising interest rates, China lockdown and US recession talk

Ryman Healthcare clawed back some gains after recent sell-downs.

The New Zealand sharemarket rebounded strongly with a gain of more than 1 per cent, supported by retirement village, energy and property stocks – but there are still grey skies out there.

The S&P/NZX 50 rose sharply in the last half-hour matching session and bounced off its 19-month low, closing at 11,875.96 – up 149.57 points or 1.28 per cent.

Volume was strong with 64.13 million shares transactions worth $269.56 million, and there were 98 gainers and 37 decliners across the whole market.

Dan Stratful, investment adviser with Forsyth Barr, said the macro-economic picture was still pretty muddy.

"The latest talk is Beijing going into lockdown and how the Chinese Covid restrictions will impact the global economy. New Zealand wholesale interest rates keep going up and hitting new highs all the time – they are pricing in more official cash rate rises we know are coming.

"There is also talk of a mild recession in the United States – it's just one bad thing after another. Earnings in the current US reporting season need to hold up, and so far so good. If they don't hold up, my gosh, we could be looking at another leg down," said Stratful.

Ryman Healthcare had its own rebound from the recent sharp sell-offs, rising 40c or 4.49 per cent to $9.30. Summerset Group Holdings was up 23c or 2.02 per cent to $11.63.

Property companies had a positive day. Investore rose 5c or 3.03 per cent to $1.70; Kiwi Property increased 2.5c or 2.36 per cent to $1.085; Stride was up 7c or 3.68 per cent to $1.97; and Goodman Property Trust gained 5c or 2.22 per cent to $2.30.

Precinct Properties, up 4.5c or 2.97 per cent to $1.56, is offering a $125m six-year green bond with the ability to accept a further $50m in over-subscriptions.

Vital Healthcare Property Trust is launching a $200m capital raise at $2.95 per unit to help fund $225m of acquisitions and developments. Vital's share price was unchanged at $3.12.

Among the energy stocks, Mercury increased 19c or 3.25 per cent to $6.03; Meridian collected 11c or 2.34 per cent to $4.81; and Genesis was up 7c or 2.51 per cent to $2.86.

Vector, up 19c or 4.5 per cent to $4.41, reported it had increased electricity connections by 1.5 per to 596,685 and gas connections 1.4 per cent to 117,658 during the nine months ending March. The advanced meter fleet, which is under review, grew 7.1 per cent to 1.95m, with more than 468,000 meters installed in Australia.

Restaurant Brands rose 69c or 5;57 per cent to $13;08 after reporting a 6 per cent increase in total sales to $275.4m for the first quarter ending March compared with the same period last year. The number of fast food outlets in New Zealand, Australia, Hawaii and California increased by 11 to 364.

The Warehouse Group gained another 17c or 5.07 per cent to $3.52 after entering the NZX 50 Index, replacing Z Energy. Stratful said The Warehouse has got lucky with its inclusion, but it's a cash cow with a big dividend.
Scales Corporation gained 16c or 3.4 per cent to $4.87 after declaring a final dividend of 9.5c a share payable on July 8 – taking the annual dividend to 19c a share.

Tourism Holdings rose 15c or 5.26 per cent to $3 after telling the market the Australian Competition and Consumer Commission's decision on the proposed merger with Apollo Tourism & Leisure will be known on July 21.

Mainfreight rose $2.25 or 2.85 per cent to $81.10; Chorus was up 12c to $7.40; Port of Tauranga improved 15c or 2.36 per cent to $6.50; Freightways collected 40c or 3.36 per cent to $12.30; Fletcher Building increased 10c to $6.15; and Skellerup Holdings was up 24c or 4.3 per cent to $5.82.

Among other gainers were Synlait Milk, up 10c or 2.99 per cent to $3.45; Vista Group increasing 10c or 5.59 per cent to $1.89; Eroad collected 9c or 3 per cent to $3.09; Bremworth gaining 3c or 4.29 per cent to 67c; and SkyCity Entertainment improving 6c or 2.14 per cent to $2.87.

Market leader Fisher and Paykel Healthcare drifted further, falling 41c or 1.89 per cent to $21.24, and investors will be watching the latest financial result from its competitor ResMed in Australia as Covid hospitalisation rates continue to fall.
Workforce provider Accordant Group fell 7c or 3.41 per cent to $1.98, and Fonterra Shareholders' Fund was down 9c or 2.95 per cent to $2.96.

Channel Infrastructure (formerly Refining NZ) is offering $100m worth of five-year, fixed-rate bonds, with the ability to accept a further $25m in over-subscriptions. Channel's share price was unchanged at $1.07.

Good Spirits Hospitality has pulled out of buying The Nourish Group, and its share price was unchanged at 7.5c.