Market close: NZ shares close week in bouyant mood

Auckland International Airport gained 17c or 2.3 per cent

With Fisher and Paykel Healthcare rebounding strongly, the New Zealand sharemarket closed the week in a buoyant mood safe in the knowledge that the latest Covid restrictions won't knock the economy around too much.

The S&P/NZX 50 Index had its biggest rise in a month, climbing 155.04 points or 1.19 per cent to 13,234.55 on impressive trading. The New Zealand and FTSE Russell indices were rebalancing, creating total volume of 172.43 million share transactions worth $923.05m.

There were 79 gainers and 56 decliners over the whole market of 185 stocks.

Dan Stratful, investment adviser with Forsyth Barr, said perhaps the market was boosted by the June quarter gross domestic product growth of 2.8 per cent.

"The wholesale interest rates have squeezed higher and there will be another shot in the arm for the economy when Auckland comes out of lockdown. There will be huge pent-up spending demand and I think they will open up their wallets," he said.

He said at this time of the year a lot of stocks are going ex-dividend following the reporting season. "It's best just to sit back, collect the dividends and reassess your investment position after that."

New Zealand is one of the best performing economies in the world and will be the first to raise interest rates. There's a high chance of the official cash rate going up in October and November, Stratful said.

"We have gotten used to that fact – two increases of 25 basis points will be okay, but a rise of 50 basis points in one hit will take the market by surprise."

Market leader Fisher and Paykel Healthcare rose $1 or 3.8 per cent to $32.40 on heavy trade worth $100m. A study in Britain indicated continuous positive airway pressure therapy should be the standard care for Covid patients rather than Fisher and Paykel's high-flow nasal oxygen.

Stratful said anytime Fisher and Paykel's price gets in the low $30s investors snap it up. They see it as a buying opportunity as Fisher and Paykel is still a quality company.

Retailers Hallenstein Glasson rose 15c or 2.17 per cent to $7.05 but Briscoe Group was fell 16c or 2.23 per cent to $7.01. Bremworth was up 2c or 2.44 per cent to 84c.

New additions to FTSE global indices Mainfreight was down 77c to $91.75 on trade worth $296.3m, and Serko declined 7c to $7.80. Argosy slipped 1c to $1.61 on trade worth $54.5m and Stride Property was down 4c to $2.51 on trade worth 73.37m after being admitted to the FTSE EPRA Nareit Global Real Estate Index Series.

Utilities investor Infratil broke through the $8 mark and reached a new high of $8.05, up 11c. Auckland International Airport gained 17c or 2.3 per cent to $7.55; Freightways rose 24c or 1.91 per cent to $12.83; Pushpay Holdings picked up 10c or 5.38 per cent to $1.96.

Synlait was up 9c or 2.95 per cent to $3.14, and a2 Milk kept sliding, down 10c to $5.58.
Amongst the energy companies, Contact was up 26c or 3.25 per cent to $8.27; Mercury increased 9c to $6.60; Vector rose 16c or 3.92 per cent to $4.24; and Genesis gained 6c to $3.41.

Port companies Port of Tauranga increased 10c to $7.30; Napier Port rose 10c or 3.13 per cent to $3.29; and Marsden Maritime Holdings was down 10c to $6.35.

Other gainers were Accordant Group, up 9c or 5.11 per cent to $1.85; Sanford rising 17c or 3.37 per cent to $5.22; Kiwi Property picking 5c or 4.33 per cent to $1.205; Third Age Health Services increasing 5c or 2.06 per cent to $2.48; and Enprise Group collecting 10c or 4.63 per cent to $2.26.

Sky Network Television took on a new look, gaining 8c or 3.9 per cent to $2.13 following its one for 10 share consolidation. SkyTV reduced its shares on the market from 1.746 billion to 174.68m. SkyCity Entertainment rose 10c or 3.12 per cent to $3.31.

Chorus was down 6c to $6.65; Tourism Holdings declined 10c or 4.13 per cent to $2.32; and DGL Group decreased 13c or 4.48 per cent to $2.77.

As expected Air New Zealand is burning cash during the Alert Level 4 and 3 restrictions, and its share price edged ahead 0.005c to $1.54. The monthly impact is $45m-$55m including the benefit of any wage subsidies and the airline has now drawn down a total of $435m on the government loan facility, leaving $1.065b remaining.

NZ Automotive Investments, owner of 2 Cheap Cars, came out of a trading halt and fell 3c or 2.65 per cent to $110 after a substantial shareholder sold $5m worth of shares through brokers, representing about 10 per cent of the company's market capitalisation.