Market close: NZX ends week up more than 3 per cent

investors rewarded those companies reporting better-than-expected financial results. Photo / File

The New Zealand sharemarket ended a busy week more than 3 per cent ahead as investors rewarded those companies reporting better-than-expected financial results.

The S&P/NZX 500 Index jumped 173.77 points or 1.49 per cent to 11,835.94 – well ahead of last Friday's closing of 11,452.14. There were 105 gainers over the whole market and only 27 decliners. Trading was strong, with 95.11 million shares worth $216.22 million changing hands.

Shane Solly, portfolio manager with Harbour Asset Management, said the forward pack was continuing to drive the market forward, but there was a broader rally with some smaller stocks powering through.

"Investors have had time to digest the better-than-expected results."

The market was also heartened by Prime Minister Jacinda Ardern's latest update in the battle against Covid-19.

"There were encouraging signs and there was no need to make the settings more restrictive - but they would not be eased ahead of the current schedule," she said.

Easing level 3 in Auckland and level 2 for the rest of the country will spur stocks such as Auckland International Airport, Air New Zealand, Tourism Holdings, Vista Group, SkyCity and the listed retailers.

After reporting earlier, Auckland Airport increased 13c or 2.02 per cent to $6.58 and Ebos climbed 28c to $22.42. Solly said the airport team had worked hard to reduce costs and was in a better position than people were expecting.

In the day's only full-year result, reliable Skellerup Holdings produced a steady net profit of $29m on revenue of $251.38m, up 2 per cent from last year. Skellerup, which increased 16c or 6.43 per cent to $2.65, increased rubberware sales in United States and is paying a final dividend of 7.5c a share on October 16.

Other gainers were Metro Performance Glass, up 3c or 14.29 per cent to 24c; Steel and Tube, which reports next week, increasing 4c or 7.41 per cent to 58c; NZME up 2c or 7.14 per cent to 30c; and EROAD, climbing 25c or 6.63 per cent to $4.02. Transport Technology firm EROAD said it had lodged an application to list on the Australian Stock Exchange.

Transport operator Mainfreight had a strong day, rising 95c to $45.75 on trade worth $9.4m; retirement village operator Ryman Healthcare increased 30c to $13.50 on heavy trading worth $6.75m; and after further exposure about the health benefits of honey, Comvita was up 14c or 4.67 per cent to $3.14.

There were some rumblings down south. The a2 Milk Company announced it was making an offer to buy 75.1 per cent of Mataura Valley Milk for $270m to expand its manufacturing capacity. China Animal Husbandry Group will retain the remaining 24.9 per cent shareholding.

Soon after, Synlait - which supplies a2 Milk - said the companies had a longstanding, strong and complementary partnership. Synlait is well positioned to continue supporting a2 Milk's growth aspirations through its highly-integrated infant formula manufacturing capabilities that meet the high standards in China.

Synlait fell 9c to $6.59, while a2 Milk climbed 35c or 2.26 per cent to $20.27.

Fisher and Paykel Healthcare also wants more manufacturing capacity, telling shareholders at the annual meeting it is planning a third production facility in Mexico, which will be commissioned with two years. Fisher and Paykel rebounded with a 54c rise to $35.30.

Meridian said retail sales in July were 14.2 per cent ahead of the same month last year and its share price rose 10.5c or 2.17 per cent to $4.95. Fellow energy stocks Mercury was up 18.5c or 3.7 per cent to $5.18 and Genesis rose 6c or 2.09 per cent to $2.93.