Market close: NZ shares rise, Synlait Milk gains on supply deal

Synlait Milk rose 6c to $5.11. Photo / Supplied

Fisher and Paykel joined a sharp rally in technology and healthcare stocks offshore as sharemarkets quickly became accustomed to the make-up of a new United States government.

The markets centred on control of the Senate rather than the prospect of Joe Biden becoming the 46th US President. The S&P/NZX 50 Index gained 50.04 points or 0.41 per cent to 12,249.98, and there were 78 gainers and 60 decliners.

Volume surged to 68.88 million shares worth $258.97 million in late trading as the passive investment funds shifted their portfolio weightings, with New Zealand stocks coming out of the Wisdom Tree International Equity index.

It looks like the Republicans have kept control of the Senate and the Democrats maintain the majority in the House of Representatives, dimming the prospects for tax increases and tighter regulations on businesses under Biden.

Mark Lister, head of private wealth research for Craigs Investment Partners, said a divided Congress would be good for financial markets. "It means we won't see dramatic change, which lessens the uncertainty of major policy shifts. We probably won't see the significant, debt-fuelled fiscal support that the Democrats were hoping for."

Fisher and Paykel Healthcare climbed 90c or 2.5 per cent to $36.90 on trade worth $25.5m. "Technology and healthcare stocks rose sharply overnight in the US, while value and cyclical stocks fell," said Matt Goodson, managing director of Salt Funds Management.

Facebook jumped 8.32 per cent to US$287.38 ($429.04), Alphabet (Google) was up 6.09 per cent to US$1745.85, Amazon gained 6.32 per cent to US$3241.16, Microsoft increased 4.82 per cent to US$216.39 and Apple was up 4.08 per cent to US$114.95 as the technology-driven Nasdaq Composite climbed 3.85 per cent to 11,590.78 points. The Dow Jones Industrial Average rose more than 360 points or 1.34 per cent to 27,480.03.

Some value stocks here had good days – a2 Milk rising 15c to $14.35, Skellerup Holdings increasing 6c or 2.03 per cent to $3.02, while technology firm Serko was up 10c or 2.04 per cent to $5.

Synlait Milk rose 6c to $5.11 after signing a manufacturing supply agreement from mid-2022 with an unnamed global dairy products leader. Synlait will spend $70m over two years at its two Auckland processing plants to meet the new supply of nutrition products. "It's important for them to sign up new customers as they have plants sitting there with plenty of capacity," said Goodson.

Tourism Holdings had a revival, climbing 11c or 5.02 per cent to $2.30, and software company Gentrack jumped 13c or 10.92 per cent to $1.32.

Amongst the decliners were Pushpay Holdings, losing 26c or 3.10 per cent to $8.14; Meridian Energy, down 14c or 2.53 per cent to $5.39; Vector decreasing 9c or 2.14 per cent to $4.12; Port of Tauranga, declining 9c to $6.99; Auckland International Airport, down 7c to $7.08; and Mainfreight falling 26c to $53.24.

Fishing company Sanford plunged 42c or 7.87 per cent to $4.92 after reporting a 46 per cent fall in net profit to $22.4m for the year ending September. Revenue was down 14 per cent to $468.8m in its preliminary result, and the company said fourth quarter profitability was impacted by lower-than-expected wildcatch and toothfish catch performances. Salmon prices are also falling.

Trustpower's revenue slipped 6 per cent to $506.27m and its net profit was down 13 per cent to $33.61m for the six months ending September, while its operating earnings (ebitdaf) were up 3 per cent to $110.4m.

It is paying an interim dividend of 17c a share on December 4 and its share price edged ahead 3c to $7.08. Trustpower is expecting 2021 operating earnings in the range of $185-$205m, after reporting $110.4m in the first half.