Shane Solly, portfolio manager for Harbour Asset Management, said globally there had been a lift-off in earnings for airlines and travel stocks. United and Delta, two of the United States' biggest airlines, reaffirmed strong forward bookings and their ability to pass on higher fuel.
This confidence flowed through to the local market. Online travel provider Serko rose 19c or 4.12 per cent to $4.80, and Air New Zealand had another strong day as the rights trading comes to an end.
The Air New Zealand ordinary shares were up 4c or 4.68 per cent to 89.5c and the rights increased 9.8c or 15.31 per cent to 73.8c on volume of 8.4 million worth $5.56m. Auckland International Airport was down 5c to $7.85.
The more defensive dividend stocks are finding it hard going as bond yields continue to rise. The US 10 Year Treasury Note yield reached a near five-year high of 2.958 per cent, up 11.3 basis points, and the 10 Year New Zealand Government Bond yield increased 7.9 basis points to 3.567 per cent.
The NZ dollar continued to weaken since the announcement that inflation had reached 6.9 per cent. The NZ dollar fell to US66.99c against the American greenback from a high of US68.13c the day before.
Solly said: "You may have seen the peak in longer-term bond yields, and pressure is increasing on central banks to move quicker on increasing interest rates."
US Federal Reserve chairman Jerome Powell signalled bigger rate hikes, even a 50 basis points rise in the cash rate next month. "There is something to be said for front-end loading any accommodation one thinks is appropriate," Powell told the International Monetary Fund Debate on the Global Economy.
At home, market leader Fisher and Paykel Healthcare was down 31c to a near new two-year low of $22.29 and its market capitalisation has been trimmed to $12.86 billion. It is now just above Meridian with a market cap of $12.45b.
Transtasman health and animal care products distributor Ebos Group reached a new high after rising 70c to $43.25.
Freightways was down 29c or 2.36 per cent to $12; Skellerup Holdings declined 20c or 3.38 per cent to $5.71; a2 Milk decreased 9c to $5.03; and Mainfreight shed $1.01 to $80.50.
Trustpower was up 18c or 2.72 per cent to $6.80; Ventia Services Group gained a further 6c or 1.89 per cent to $3.24; and South Port New Zealand increased 10c to $9.
The leading retirement village operators were in recovery mode, with Ryman Healthcare up 25c or 2.79 per cent to $9.20 and Summerset Group Holdings increasing 15c to $11.55. But Arvida Group was down 4c or 2.35 per cent to $1.66.
Transtasman chemicals business DGL Group, up 4c to $4.50, has bought Total Coolant Management Solutions Pty for $2.47m.
NZ King Salmon Investments' $60.1m renounceable 2.85 new shares for one existing share rights offer at 15c a share opens next week and runs through till May 6. King Salmon was up 10.7c or 45.92 per cent to 34c after its price was adjusted for the rights offer.
Other decliners were Investore down 4c or 2.3 per cent to $1.70; Goodman Property Trust losing 4c to $2.30; Harmoney shedding 4c or 2.67 per cent to $1.46; Accordant Group falling 7c or 3.57 per cent to $1.89; Steel & Tube decreasing 4c or 2.63 per cent to $1.48; and Briscoe Group down 13c or 2.21 per cent to $5.76.
Move Logistics is applying to dual list on the Australian Stock Exchange by the end of May and its share price gained 1c to $1.43.
New Talisman Gold Mines went into a trading halt while it raised $2.5m through a private placement of convertible notes – it already has $1m committed. Some of the money will be used to recommence underground activities at its mine in Karangahake Gorge. New Talisman last traded at 0.002c.
QEX Logistics has been delisted for not meeting the NZX conditions.
