New Zealand shares rose, pushing the S&P/NZX 50 Index to the highest in more than two months, as the rebound in dairy prices, relatively low NZ dollar and rising house prices lifted sentiment for the economic outlook. Heartland New Zealand, Fonterra Shareholders' Fund and Summerset Group gained.
The S&P/NZX 50 Index rose 14.82 points, or 0.3 per cent, to 5834.83. Within the index, 35 stocks rose, six fell and nine were unchanged. Turnover was $123 million.
Dairy prices have climbed about 63 per cent from their low of early August, based on the GlobalDairyTrade price index, and traders will be watching this week's auction for any signs the rally is running out of puff.
The kiwi is trading near a four-month high at US68.11c, but is down about 23 per cent from its highs of November 2014, when it touched US88.35c, easing the pressure on exporters bringing home their overseas sales and helping tourism.
Fonterra Shareholders' Fund units rose 0.9 per cent to $5.40 and have climbed from as low as $4.58 in June. A2 Milk, which markets milk with a protein variant said to have health benefits, was unchanged at 77c and has gained from 46c in February. Synlait Milk was unchanged at $2.40, up from $2.04 in late August.
Heartland New Zealand rose 2.5 per cent to $1.23, leading the benchmark index higher. In August, the listed lender posted a 34 per cent gain in full-year profit and affirmed its guidance for 2016 earnings to rise as much as 15 per cent. Heartland is in a bidding war with Turners for a cornerstone stake in auto finance company Motor Trade Finances.
Summerset Group led gains among retirement village operators, rising 1.8 per cent to $3.88. Ryman Healthcare rose 1.6 per cent to $7.60 and Metlifecare gained 0.2 per cent to $4.26.
Goodman Property Trust rose 0.8 per cent to $1.20 after completing the final leg of this year's refinancing, a new $157 million facility for its joint venture with Singapore's GIC.
Precinct Properties NZ rose 1.3 per cent to $1.205 and Kiwi Property Group climbed 0.8 per cent to $1.335. Argosy Property rose 0.9 per cent to $1.085.
Steel & Tube Holdings, the building supplies company, rose 1.5 per cent to $2.72 and Fletcher Building was up 0.1 per cent to $7.25.
Chorus rose 1.1 per cent to $2.78 after it said it increased broadband connections 0.9 per cent in the September quarter as more customers switched to higher-speed fibre.
Auckland International Airport edged up 0.1 per cent to $5.10.
Outside the NZX 50, Moa Group rose 5.4 per cent to 39c after the listed beer maker said its first-half loss narrowed after it lifted the volume and value of sales and improved its gross margin.
Veritas Investments dropped 5.7 per cent after chief financial officer Adrienne Roberts resigned, just a year and a half after being appointed to the role.