Market close: NZX rises as Chorus reaches new heights

Chorus hit an all-time high today on the NZX. Photo / File

Telecommunications network operator Chorus had its day in the sun, hitting an all-time high on news that it will be joining the Australian stock exchange's leading index. The New Zealand sharemarket responded with a slight rise.

The S&P/NZX 50 Index gained 36.17 points or 0.31 per cent – the same increase as the previous day - to 11,895.63. There were 91 gainers and 43 decliners over the whole market, with 52.36m shares worth $139.68 million traded.

Chorus, which has surged 33 per cent this year, cracked the $9 mark with a 45c or 5.23 per cent gain on trade worth $2m. Its share price finished at $9.05, breezing past the previous high of $8.67 achieved on August 26.

Index creator Standard and Poor's said more Chorus shares are traded in Australia than New Zealand and it will join the S&P/ASX 200 Index on September 18 – along with other dual-listed stocks, Fisher and Paykel Healthcare, a2 Milk, Spark, Fletcher Building and SkyCity.

Asked if Chorus would like to be referred to as an Australian stock, Rickey Ward - JBWere's head of investment strategy group – said "I don't think so, but they do like the benefit of people showing an interest in them. Chorus has believed they should be worth more, and S&P is making them an Aussie stock for the purpose of re-calculating the index. Chorus will still be domiciled in New Zealand, mind you."

Freed from the Auckland lockdown SkyCity is making a strong rally, up 11c or 3.86 per cent to $2.96, while Serko gained 8c to $4.34, Mainfreight increased 75c to $48, Auckland International Airport went up 8c to $7.10, but Fisher and Paykel Healthcare fell 50c to $33.80.

Ward said the market had a better feel about it today, with retailer Briscoe Group and Fletcher Building also attracting keen support.

Briscoe rose 10c or 2.67 per cent to $3.84 after reporting a solid half-year financial result. Briscoe's net profit slipped 1.3 per cent from $28.35m to $27.98m on revenue of $292.4m, down 3.5 per cent – even though its homeware and sporting goods stores were closed for 50 days during the six months ending July. Online sales grew nearly 100 per cent in that period. Briscoe is paying an interim dividend of 9c on October 1.

Ward said Rod Duke (Briscoe chief executive) has once again shown he is the No 1 retailer in the country. "Time and time again he sets the benchmark for retail and finds a way through. He's just a very good operator."

Fletcher Building, which has been climbing steadily lately, gained 9c or 2.44 per cent to $3.78. Major Australian shareholder Perpetual Limited is still pushing the line that Fletcher should sell all its operations in Australia to get better value for its business and share price.

Restaurant Brands has had a tough time. Net profit for the half-year to June fell nearly 43 per cent from $20m to $11.4m on revenue of $383.4m, down 13.4 per cent. Restaurant Brands, which recently bought 69 KFC and Taco Bell outlets in Southern California, is not paying an interim dividend and its share price fell 9c to $12.15.

Sky Network Television was the day's biggest mover, climbing 1.4c or 9.5 per cent to 16.1c ahead of its Thursday results announcement. Ward said most people believe Sky TV has got back on track. "We will hear more soon. Their subscriptions appear to be strong with more people being at home during the lockdown."